SKIPTON EXPLORATION LICENCE APPLICATION
EXPLORATION WORK PROGRAM
Background
Predictive Discovery Pty. Ltd. (“PDPL”) was established as part of the
commercialisation plans of the Predictive Mineral Discovery Cooperative Research
Centre (“pmd*CRC”) in 2008. PDPL is a mineral exploration company employing the
techniques and numerical modelling technology developed by the pmd*CRC during
its 7 year term, which will be an exemplar for the predictive mineral discovery
approach and will, hopefully, demonstrate to other Australian explorers the benefits of
using the same methods.
Geological rationale
The Victorian orogenic gold deposits demonstrate strong structural control at the mine
scale, and ore localisation at that scale can be well explained by application of MohrCoulomb geomechanical theory to the 3D geological geometries observed in these ore
systems. Numerical modelling has been used very effectively to both explain ore
localisation in Victorian gold deposits and make predictions of new gold ore
occurrences (e.g. Schaubs and Zhao, 2002 and Potma et al, 2008). This work shows
that dilation and focussing of fluid flow is the primary control on ore localisation at
the mine scale. However the reason for deposit localisation at the terrane scale is less
clear.
Based on studies carried out during the pmd*CRC and its predecessor, the AGCRC,
we suggest that the location of all orogenic gold deposits (Goldfarb et al, 2001) at the
terrane scale is controlled by very large faults that have probably penetrated the entire
crust. In Victoria, we believe that such structures are present but are less easily
observed in the geophysical data than in some other terranes. Nonetheless, we suggest
that a combination of geophysical analysis and observation of some other significant
data sets can provide clues on deep structural controls on the location of the “next
Bendigo”. In this regard, two important data sets are gravity and the granite locations.
Gravity
Work in the CRC has demonstrated that wavelet analysis of potential field data to
produce what are colloquially known as “worms” (Hornby et al, 1999) can reveal
aspects of deep structure which are not apparent in other types of data processing. In a
pmd*CRC presentation dated 2 July 2007, Barry Murphy presented the gravity worm
image shown here as Figure 1. This image shows a pair of broad somewhat diffuse
NE trending worm trends which pass through both Bendigo and Ballarat (Figure 2).
This suggests that rather than a single more NNE trending control underlying both
deposits, there may be a more complex picture in the deep sub-surface.
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Bendigo
Stawell
Ballarat
Figure 1: Gravity worm image of Central Victoria (from Murphy, 2007) with
locations of Ballarat, Bendigo and Stawell superimposed.
Bendigo
Stawell
Skipton target
Ballarat
Figure 2: Worm image from Figure 1 with gravity trend lines and Skipton target
superimposed
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At the SW end of the trend line which contains Bendigo (Figure 2), there is a strong
bend in the worm which lines up approximately with the NNW Stawell structural
trend. This is just south of the Beaufort alluvial goldfield under basalt near Skipton.
The presence of this bend offers a conceptual target for a large gold ore system, which
will be the target of Predictive Discovery’s exploration program.
Granites
Plotting granite, granodiorite and porphyry ages from the Geovic GIS reveals a major
change in granite ages along a trend that is very similar to the gravity worm trend
illustrated in Figures 1 and 2. Figure 3 illustrates the location of that trend with
calculated age dates above 380Ma shown in red and those older than 380Ma shown in
dark blue.
>380 to <380My granite
age transition
Skipton EL
application
Figure 3: Thematic map of Central Victoria produced using information drawn from
the Geovic GIS and showing granites (magenta shades) with age date locations given
as diamonds, colour coded dark blue for >380Ma and red for <380Ma, together with a
NE trend which marks the transition from the older to younger granites.
While the principal mineralisation age (440Ma) predates the granites, this transition
between Late Devonian and early-Middle Devonian granite genesis suggest that there
may have been a very large pre-granite basement control on partial melting in the
lower crust and/or upper mantle. This feature may also have controlled (in part) the
localisation of the largest gold ore system in Victoria and certainly seems to affect the
orientation of some granite boundaries e.g. the western edge of the Harcourt Granite
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Work program Skipton EL Application July 2008
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and the western edge of the (largely concealed) granite body north-east of the Skipton
EL Application (Figure 4).
0
10 km
Figure 4: Granite outlines plotted using the Geovic GIS with the Skipton EL
Application (in purple) superimposed on a grey shade gravity image, which illustrates
a NE trending deep gravity low coinciding with some granite outcrops (in magenta).
Figure 4 also shows that the above mentioned granite appears to be offset on a northwest oriented structure which may correlate with the Stawell structural trend.
Exploration considerations
Figure 5 shows that the nearly all of the EL Application area is covered by Quaternary
basalt. Clearly, this will be a very difficult area to explore. For that reason, our target
here is a giant gold ore system with a large footprint. A preliminary lithogeochemical
study by Wilde et al (2004) suggests that a Bendigo-scale system will have a very
large footprint (perhaps 10km across on a 50ppb rolling average cutoff) owing to the
presence of overlapping zones of alteration surrounding lode gold systems. Use of a
combined index using Au and As analyses (+/- Pb and K), the presence or absence of
phengitic white mica and carbonate alteration should give a good indication as to
whether a large ore system exists in the target area.
A very large gold ore system should also give a significant hydrogeochemical
anomaly. At least one hydrogeochemical study has already been conducted in a
nearby area by Stawell Gold Mines with the assistance of CSIRO (Henham, 1994),
and apparently generated useful results.
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Beaufort
Skipton
0
5 km
km
Figure 5: Skipton ELA showing distribution of Quaternary basalt (in pale yellow) and
granites (in magenta) drawn from the Geovic GIS.
We know from the Stawell example (Schaubs et al, 2006) that Cambrian basalt bodies
can provide very useful rheology contrasts for the localisation of mineralisation.
Detailed gravity measurements have been used effectively elsewhere in the State for
detecting such bodies where concealed (e.g. at Kewell - Schaubs et al, 2006). The EL
Application area is almost certainly underlain by Cambrian St Arnaud Beds and
therefore the presence of Cambrian basalt bodies is certainly possible there. It is also
conceivable that the Landsborough Fault extends southwards into this area, in which
case there may be up-thrust basalt bodies located along it underneath the Quaternary
basalt cover, as there are on the Avoca Fault further to the east.
Clearly, the most important unknown for exploration in this area is the variability in
thickness of the Quaternary basalt cover. Only one previous explorer, Carpentaria
Exploration (1977-1981), has attempted to explore beneath the basalt in this area, and
its focus was on deep leads. An examination of the relevant open file reports have
shown that drilling encountered Cambrian bedrock at 60-70m in the vicinity of Lake
Goldsmith in the eastern part of the ELA.
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There is also a scattering of water bores through the area, most of which are 50m or
less in depth. Apart from holes at the northern edge of the ELA where the Palaeozoic
basement is shallow, only one hole appears to have penetrated through to the
basement. This hole, State Observation Bore 62734 located 6km east of Stoneleigh
(Figure 5) apparently reached sand (saprolite or alluvium) at 106.5m (see Appendix
1).
Proposed work program and timing
The foregoing explanation provides clear guidance for the future exploration program.
The sequence of actions and their likely timing are as follows:

Year 1 – regional scale studies
o Identify structural target areas within the ELA using detailed potential
field “worm” analysis.
o Determine the impact of a large ore system on hydrogeochemistry
using the existing boreholes for water sampling by literature survey,
employment of a hydrology consultant and reactive transport
modelling (using the pmd*CRC-developed PmdPyRT code) to
determine dispersion of Au, As and other pathfinder elements in the
Skipton area both below and within the Quaternary basalt.
o Ensure access to bores on private property.
o Undertake hydrogeochemistry using all existing bores in the EL.

Year 2 – target development
o If recommended from the reactive transport analysis, drill a series of
very widely spaced holes through the basalt across the tenement and
sample the waters at the bottom of those holes. Analyse bottom of hole
samples for a possible Bendigo-scale lithogeochemical and/or
alteration halo.
o Determine depth to bedrock and detect possible Cambrian basalt
bodies beneath the Quaternary basalt using detailed gravity surveys
supplemented by EM depth soundings over target areas identified from
hydrogeochemistry and worm-based structural analysis.
o If Cambrian basalt bodies are detected, use numerical modelling to
determine favourable locations for drill targeting.

Year 3 – drill targets
o Drill Cambrian basalt targets if they are found to exist.
o If no Cambrian basalt targets can be identified, undertake several lines
of sub-basalt RC drilling across the most favourable areas identified by
hydrogeochemistry and worm-based structural analysis to test for a
Bendigo-scale ore system. The aim of this work will be to identify both
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anomalism and evidence for any suitable rheology contrast which
could have focused gold ore deposition.

Year 4 – follow-up drilling
o Undertake follow-up RC drilling on targets identified from first phase
drilling.
References
Goldfarb, R.J., Groves, D.I. and Gardoll, S., 2001; Orogenic gold and geologic time: a
global synthesis. Ore Geology Reviews 18, 1–75.
Henham, R. J., 1994: Exploration Licence No. 3585 Fiery Creek. Final Technical
Report for the period 24th March 1994 to 31st August 1994. Unpublished Stawell Gold
Mines Report.
Hornby. P., Boschetti, F. and Horowitz, F., 1999: Analysis of potential field data in
the wavelet domain. Geophysics Journal International, 137, 175-196.
Potma, W., Roberts, P. A., Schaubs, P. M., Sheldon, H. A., Zhang, Y. Hobbs, B. E.
and Ord, A.: 2008: Predictive targeting in Australian orogenic-gold systems at the
deposit to district scale using numerical modelling. Australian Journal of Earth
Sciences, 55, 1, 101-122.
Schaubs, P. M. and Zhao, C.2002: Numerical models of gold-deposit formation in the
Bendigo-Ballarat Zone, Victoria. Australian Journal of Earth Sciences, 49, 6, 10771096.
Schaubs P.M, Rawling, T.J., Dugdale, L. J. and Wilson, C.J.L., 2006: Factors
controlling the location of gold mineralisation around basalt domes in the Stawell
corridor: insight from coupled 3-D deformation – fluid-flow numerical models.
Australian Journal of Earth Sciences 53, 841-862.
Wilde, A. R., Bierlein, F. P. and Pawlitschek, M. 2004: Lithogeochemistry of
orogenic gold deposits in Victoria, SE Australia: a preliminary assessment for
undercover exploration. Journal of Geochemical Exploration, 84, 1, 35-50.
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APPENDIX 1
(information sourced from Water Resources Victoria online database)
Site Code:
B62734 (State Observation Bore)
Site Name:
BORE 62734
Begin Date:
27-Sep-1989
End Date:
27-Sep-1989
Bore Lithology Logs
Depth From
Depth To
Description
1
0
1.5
BROWN CLAY
2
1.5
23.5
BASALT
3
23.5
27
BROWN CLAY
4
27
30
GREEN CLAY
5
30
62
BASALT
6
62
73
BROWN CLAY
7
73
100
BASALT
8
100
105
DECOMPOSED BASALT
9
105
106.5
LIGNEOUS CLAY & COAL
10
106.5
115.7
COARSE SAND
11
115.7
127
WHITE SAND
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