Reefton Gold Project - Final report Waiuta III, PL 312666

Waiuta III licence area is located approximately 20 km south of Reefton township. This report summarises exploration activities completed during the second term of tenure from October 1994 to October 1997. Exploration activity by Macraes includes orientation wacker sampling, regional structural and geological mapping, shaft refurbishment, diamond drilling, downhole geophysical logging and resource modelling. The orientation wacker sampling programme with 24 samples collected was successful in defining the Birthday Reef. Results of structural analysis, geological mapping, rock chip sampling, and ground magnetic survey are discussed elsewhere. Refurbishment of the Prohibition Shaft continued in 1995, until technical difficulties increased costs to above budget allocation. Diamond drilling was conducted to test the resource potential of the down-plunge Birthday Reef. Assay results and drill logs of WA10, 10A, 11 and 11A are presented in the appendices. WA10 was abandoned without reaching the Birthday Reef, while WA11 intersected Birthday Reef at 979.6 m (0.4 m @ 24.5 g/t Au). WA11A intersected the Birthday Reef at 980.4 (0.5 m @ 59.7 g/t). As part of the recommendations it was mentioned that due to the very high prospectivity the area covered by the expired licence be retained as an extension to EP 40-183.