ONDUNDU GOLD DEPOSIT

Project Location

Erongo Region, Republic of Namibia, Africa

Mineral Rights (EPL)

90% interest in Omatjete Mining Company (Pty) Ltd. Omatjete Mining Company (Pty) Ltd owns 100% of the Ondundu Exclusive Prospecting Licence 3195. The Project covers 19,969 ha.

Project Highlights

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Geological Model/Target

Telfer Main Dome Mine, West Australia (26+ million ounces gold)
Muruntau Mine, Uzbekistan Central Asia (110+ million ounces gold)

Resources/Technical Report

Historical feasibility program completed by Goldfields (1986) has indicated a reserve of 4.2 Mt at 3.21g/t gold in country rock including 800 000 t in quartz veins at 17.01 g/t.

Project Summary

The Ondundu Gold deposit is Forsys's most advanced gold project. Discovered in 1917, it is located in the Northern Zone of the Neoproterozoic Damara Orogen in north-central Namibia. Ondundu is a sediment-hosted, structurally controlled, mesothermal gold deposit belonging to a family of deposits that includes some of the world's most significant gold resources including Muruntau (+100 m oz), Telfer (+26 m oz), and Kumtor (+4 m oz) and locally the Navachab Mine (+4 m oz) and the Otjikoto Deposit (+1m oz).

Ondundu gold mineralization is concentrated in the hinge zone of a large north-south trending, southerly plunging antiform within metasediments of the Kuiseb Formation and features multiple gold-bearing quartz vein sets. Widespread alteration including tourmalinisation, silicification, pyritisation, dolomitisation and albitisation increases in intensity toward the anticline. Mining of the veins along a 2.5 km corridor occurred on a relatively small-scale from five individual claim groups or mining areas from 1917 until 1963 producing an estimated 19,851 ounces of gold (Venter, Carter, 1983). The majority of the historical gold production came from proximal alluvial-eluvial deposits. Underground mining was limited to approximately sixty metres below surface by the water table.

An historical study of the property reported on by Burnett, 1993 (Mineral Investment Opportunities in Namibia: Project File, compiled by The Ministry of Mines and Energy, February 1993, ISBN 0-86976-256-7) estimated a resource of 4.2 Mt of country rock at 3.21 g/t gold containing 800,000 t in quartz veins at a grade of 17.01 g/t gold (The historical resource figures published in this press release do not conform to mineral resource categories set out in National Instrument 43-101, and should therefore not be relied upon.) Various historical reports confirm the ubiquitous coarse grained, easily recoverable nature of the gold mineralization.

The Ondundu Licence block (EPL 3195) is 19,969 ha in size, incorporates all historical mining areas and is surrounded by ERL-43, recently granted to TeckCominco. Regionally, the area has received minimal exploration while only limited diamond drilling (28 drill holes) has been conducted in the main mineralized zone. Most of the available information is the result of selective mining of high-grade quartz veins within this zone. However, past surface prospecting did identify areas of significant alteration and quartz veining to the west and northwest of the main Ondundu mineralization suggesting a potential for the identification of additional areas of mineralization.

Historically, two bulk samples were collected and processed: a 3,000 t bulk sample at the Margarethental area of the property in 1939 is reported to have returned over 860 ounces of gold for an average grade of 9.8 g/t from hand sorted quartz ore and a 6,000 t bulk sample collected and processed in 1932 returning 3,000 ounces gold for an average grade of 14.9 g/t.