Strategic Review, page-45

We can give the Stawell corridor leases to Arete Capital Partners for $100m, the Tandarra Project to KLA (Mt Eric Sprott) for $100m and keep St. Arnaud. That would be fair deal I guess .

I like St Arnaud project.
It has very high potential too, just needs more drilling now after the first pass AC drilling completed last month. (Planning underway for deeper drilling into fresh basement rock beneath best gold results). 

The drilling program was designed to test for early indications of a potential high-gradegold system of similar style to Kirkland Lake Gold’s world-class 7million-ounce Fosterville Gold Project

The recent 19 hole 1480 m first pass AC drilling results support Navarre’s view that the St Arnaud Gold Project has potential to host high-grade gold and silver in quartz veins similar in structure and geometry to Fosterville’s Swan and Eagle zones. 

The results on first drilling was very much encouraging. It i normally not easy to get these good results in the first drilling program. 

Best results include:

6m @ 2.5 g/t Au from 80m including 1m @ 5.4 g/t Au 
4m @ 1.7 g/t Au from 32m including 1m @ 5.8 g/t Au (field duplicate assayed 8.6 g/t Au)
3m @ 2.2 g/t Au from 30m including 1m @ 5.4 g/t Au
8m @ 19.8 g/t Ag (Silver) & 0.1 g/t Au from 74m including 1m @ 81.0 g/t Ag


The background of ST Arnaud is very interesting. when we know it we can see the potential IMO.  

Background to St Arnaud potential

 

Alluvial gold was first discovered at St Arnaud in 1855 and was quickly traced to its source in outcroppingquartz reefs. By 1860, 47 hard rock mines were in operation.

 

Historically, silver was a common occurrence with gold mineralisation in the St Arnaud Goldfield.

 

The St Arnaud Goldfield comprises several lines of reefs which were worked to the edge of the Murray Basin cover. These reef trends are known as the West Field, New Bendigo (Bristol), Nelson (including New Chum line) and East Field.

 

The Lord Nelson Mine was the only mine to produce gold from sulphide ores below adepth of 120m over a strike length of 3.2 kilometres to a maximum depth of 685 metres.

 

All of the other mines at St Arnaud typically did not extend beyond 200m in depth, where the gold mineralisation is interpreted to be depleted as a result of movements in the water table over time.

 

Most other mines closed on reaching the water table because the technology was not available to economically treat the sulphide ores in addition to the added cost of pumping mine water.

 

Lord Nelson mine;  

is estimated to have produced320,000ozs of gold at an average recovered grade of over 15g/t. The Lord Nelson produced gold to a depth of 685m before it closed in 1916.

 

The Lord Nelson Mine demonstrates the prospectivity of the area in terms of vertical continuityof auriferous reef systems.

 

A significant feature about the Lord Nelson mine is that from the 400 foot level to the 700 foot level, the historical records indicate that there was no payable gold, and that it was only through the persistence of the mine manager at the time that the shaft was sunk to greater depths. It was through this commitment that the discovery of significant gold mineralisation was made at depth which resulted in the majority of the gold production from St Arnaud.

 

Rex MineralsLimited drilling results;

 

In addition, the St Arnaud Goldfield has yielded several spectacular historical drill results (within exploration licence application area, ELA6819 – see Figure 9) that produced similar ‘Fosterville’ bonanza-type gold grades, including 1m @ 1,174 g/t Au from 425m in hole STDD-004 (RexMinerals Limited ASX anns. release 15 April 2008.