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West Khazret

Slater Mining has an option to purchase 100% of the West Khazret project until 2015. The northwest trending Sineshikhan fault represents the initial mineralised target, is 3km wide, has a strike length in excess of 16 km and extends across the border to the north into Russia where significant gold deposits along the structure have been exploited.  Numerous historical (circa. early 1900s) open pit and underground gold mining operations and over twenty gold prospects have been defined on the project. 

The principal initial target within the Sineshikhan fault is the mineralisation within the highly oxidised weathered crust from surface to a depth of about 70m. Previous work has identified an oxide gold deposit with a grade (mineralised drill intercepts average 1 g/t Au) and metallurgy suitable for open pit mining and conventional heap leach technology gold recovery (>75%). The underlying primary mineralisation has not been significantly drilled, but a few holes to 120m and mining to 200m depth indicates that the mineralisation continues at depth. 

Location

West Khazret is located in the Urals Tectonic Belt in northwest Kazakhstan, which is prolifically rich in both base and precious metals, extends over 2,500km and has been the major minerals production region of Russia since the 18^th century. West Khazret is located 80km southwest of the mining town of Zhetygara in Kostanai Oblast. The project area covers 320km² and contains multiple mineralised systems. A 220kV power line and roads traverse the project area with skilled labour and water readily available. 

Numerous mines are operating in the region including the significant historic Sineshikhan gold mine (just across the Russian border 4km to the north along strike), privately held Cammex's Komarovskoye (reportedly 1.5 million ounces Au and annual production of 80,000 ounces Au, purchased by Glencore in February 2013 for $200M) and Polymetal's Varvarinskoye (92 million tonnes grading 1.05 g/t Au and 0.54% cu for a total of 3.1 million ounces Au and 313 million pounds Cu resource; 2011 production of 92,000 ounces Au and 15 million pounds Cu). There are numerous conventional heap leach projects successfully operating year round in the region. 

Geology

Geology is dominated by Palaeozoic sediments and granites cut by the Sineshikhan fault in the west section of the project area.  The fault cuts Carboniferous granites and lower Palaeozoic mudstone, siltstone and greywacke of Ordovician age.  Fault controlled mineralisation is characterised by variable width (0.3-10.0m) easterly dipping en echelon quartz veins hosted within a beresite alteration with grades of up to 75 g/t Au and 30 g/t Ag. Low grade halos of veinlets and disseminated mineralisation occur outside the high grade veins.  

An additional 10km² ultramafic target has been identified in the east section of the project area with surface samples of up to 30 g/t Au.  Carboniferous granite intruded into a large body of serpentinite.  Quartz vein outcrops are widespread and consist of massive white quartz, locally copper and iron stained, with halos of coarse green beresite alteration.

Previous Exploration

Exploration to date by the previous operator on the oxide zone of the Atygai prospect (one
of twenty prospects in the Sineshikhan fault) entailed:

Hydrocore drilling (4,020m, 88 holes).

Trenching (1,500m in length to 3m depth) with mineralised widths averaging 1.3 g/t Au.

Core drilling (3,193m, 44 holes, 40-120m depth) with mineralised intercepts
averaging 1.0 g/t Au.

Preliminary metallurgical testwork (on a 173kg bulk sample with a grade of 0.88 g/t Au) indicated that the oxide mineralisation is amenable to cyanide heap leaching giving recoveries of greater than 75%.

Re-analysis of over 200 duplicate samples during due diligence corroborated the existing
data set. 

Current Exploration

A grid geochem programme has been completed over the entire area with a significant drill programme planned.