ASIAN EXPLORATION — First Dynasty uncovers gold on road to Mandalay — Drilling will test theory that discovery forms part of a larger mineralized zone

A reconnaissance geochemical sampling program by First Dynasty Mines (FDM-T) has identified gold-bearing mineralization near the centre of its Block 2 property in north-Central Myanmar.

The Singapore-based company is exploring the property under a 50-50 joint-Venture agreement, signed in 1995, with the Myanmar Ministry of Mines.

The property comprises 1,400 sq. km of densely vegetated terrain in the Wuntho Massif area, about 320 km north of Mandalay.

Mineralization was identified in the process of evaluating 142 samples taken from a 230-by-18-Metre section of a gully near the Naungpat Ridge. The ridge lies in the west-Central portion of the property, at the contact between the Pinhinga granodiorite complex and older Cretaceous (between 65 and 135 million years old) metavolcanics near the north-south-Trending axis of the Burma Volcanic Arc.

Half of the samples contained grades exceeding 1 gram gold per tonne, whereas 26 contained values exceeding 10 grams. Eight samples yielded values of more than 50 grams. A little more than half the samples were taken from “stockpiles,” which were left following artisanal miners. Those samples had an average grade of 11 grams.

An additional 13 samples, averaging 14.9 grams, were taken from bedrock exposed by artisanal shafts and tunnels, whereas five chip samples taken from nearby naturally exposed bedrock averaged 2.7 grams. The remaining samples were taken from channels, measuring 1 to 3 metres in length, excavated in exposed bedrock. With an average grade of 0.74 gram, gold values from these samples were generally lower. The longest channel, however, returned 2.3 grams over 4.9 metres.

Gold mineralization on the property is primarily associated with a silicified breccia host rock, which is believed to have been formed by volcanic activity. The gold-bearing samples also occur near silica-iron anomalies, which were identified by satellite imagery. Several more of these interpreted anomalies are known to occur on the ridge and will be the target of future programs.

First Dynasty believes the discovery area may be part of a larger zone of mineralization, as the gully does not follow mineralization trends in the underlying bedrock. That theory will be tested by a drill program scheduled for later this year. Drilling has been delayed as a result of the onset of the rainy season and because exposed bedrock is found only near the gullies.

“The amount of rock exposure here is minimal,” says Gordon Lister, First Dynasty’s senior vice-president of exploration. “The elevated areas are heavily timbered with fair-sized trees, while the lower areas are characterized by jungle vegetation, especially near some of the creeks.” Adds Lister, “We can only operate from November through May because, otherwise, it’s the rainy season, when access is too difficult. It is not a easy place to work, but we are willing to persevere for the prize that awaits us.”

.SGeologically similar

To date, First Dynasty has sampled 11 separate areas on the ridge along a length of 7 km. All the areas appear geologically similar and occur in areas formerly worked by artisanal miners. Results from the remaining 10 areas have yet to be made available.

First Dynasty has also received encouraging results from samples taken at the previously discovered Le-U showing, which is within the intrusive, 4 km to the east. Of the 49 samples taken, 19 yielded values exceeding 1 gram, whereas eight returned values exceeding 10 grams.

The company is also awaiting results from samples taken from a newly discovered area known as Tonbon. The 2-by-1-km area, which is 4 km northeast of Naungpat Ridge, is characterized by altered and limonitic rocks.

About 2 km to the northeast, at the Namma showing, a sampling program is nearing completion. That showing is characterized by a 2-by-1-km area of limonitic (hydrous iron oxide) jasperoids, which the company believes could be the source of gold found in two nearby stream-sediment samples. Those samples returned 0.5 gram.

The jasperoid area lies in the crest of an anticlinal fold, where it is intersected by a splay fault originating from the north-south-Trending Mesa transcurrent (regional-scale strike-slip) fault that runs through the property near its eastern boundary.

In the first year of its joint venture, First Dynasty identified eight areas with anomalous gold values. These occur within an intrusive complex that covers the southwestern portion of the property and at its contact with the older metavolcanics. One area also lies within a younger metavolcanic unit that covers the northwestern corner of the property.

The company plans to begin drilling in the fourth quarter, once the rainy season ends.