Masapelid Project

Location and Access

The Masapelid Project covers Masapelid Island (Figure 1) which is located 6km offshore, north-eastern Mindanao, southern Philippines. Daily commercial flights from Manila to Surigao City and Butuan City provide airline access to the district in which the project is located.

 

Figure 1: Location of Philippines Projects.

 

Boat access to the project from Surigao City and the coastal town of Placer takes approximately 90 minutes and 30 minutes respectively (Figure 2).

 

Figure 2: Location of the Masapelid Gold Project relative to known
gold and copper deposits in the Surigao District, northeastern
Mindanao, Philippines.

 

History and Geology

The Masapelid Project has a history of narrow vein gold mining commencing pre-WW II. Records indicate that 20,666 tonnes at 14.62g/t gold was produced by the Km73 Mining Company from the Layong Vein on the eastern side of the island before the mine ceased production at the onset of WW II. A further 133,000 tonnes were reported to have been outlined by underground development in the parallel Manuel Vein. Two shafts were sunk approximately 300 metres apart to depths of 122 metres and 30 metres with horizontal development completed on 3 levels in the deeper of these shafts. The parallel veins are interpreted to be approximately 900m long, strike in a northeasterly direction, are commonly approximately 1m wide and contain ancillary silver, lead, zinc and minor copper minerals. The Layong Vein and Manuel Vein extend southwest from Layab on the eastern side of Masapelid Island (Figure 3).

 

Figure 3: Masapelid Gold Project – Location and Geology.

 

Lindian's initial gold exploration target at the Masapelid Project is 0.3 to 0.5 million ounces, based on a target gold resource of 0.5-1 million tonnes at 10 to 15g/t gold with further contribution to resources from drilling of the Sabang copper-gold porphyry.

An historical four hole diamond drilling programme performed by the UNDP-MGB in 1986 intersected:*

  • 1m at 22.5g/t gold
  • 1m at 56g/t gold
  • 1m at 35g/t gold
  • 1m at 72g/t gold

* Medusa Mining Limited ASX Announcement 25 January 2006 "Masapelid Island Gold Project"

An historical document of surface rock chip sampling reported the following high grade analyses:

  • 426g/t gold & 658.4g/t silver
  • 269.2g/t gold & 360g/t silver
  • 125.6g/t gold & 434.2g/t silver
  • 23.6g/t gold & 79g/t silver

The average grade of 31 samples collected by Black Mountain Inc. (1980), from the Layong Vein was 0.67oz/t gold (equivalent to 20.84g/t gold).

Sampling on the Layong Vein by Black Mountain Inc (1980) produced results to 426g/t Au and 658.4g/t Ag. The average grade of 31 samples collected by Black Mountain Inc., from the Layong Vein was 0.67oz/t Au (equivalent to 20.84g/t Au).

In 1983, Benguet Exploration Inc. examined the property and collected four samples which averaged 1.52 oz/t gold, 4.34 oz/t silver, 3.77% lead, 1.56% zinc and 2.14% copper 1. (This information is contained within the Medusa Mining Limited ASX announcement of 25 January 2006 "Masapelid Island Gold Project" and was signed by a competent person under the JORC Code.)

In the early 1990s, Western Mining Corporation (WMC) undertook extensive exploration focused on discovering porphyry copper-gold mineralisation at Masapelid. WMC's exploration involved stream sediment sampling, grid based soil sampling, 141 line km of ground magnetics, a gravity survey, reconnaissance IP survey in 3 areas, and 9 diamond drill holes. The soil sampling outlined coherent gold anomalies over 900 metres of strike corresponding to the projected strike of the Layong and Manuel Veins 1.

WMC's hole MSI-D1 on the western side of the island near the UNDP-MGB drilling described above also intersected vein mineralisation of 1.48 metres at 11.81 g/t Au 1.

Three diamond drill holes were completed by WMC in the Sabang area at the southern tip of the island where porphyry copper mineralisation was intersected including 264.82 metres at 0.32% copper in hole MSI-D7 with the last sample in the hole assaying 1% copper and 0.5 g/t gold over 0.5 metres 1. Recent work by Lindian at Sabang has identified secondary copper mineralization at surface in Adit#1.

Systematic rock and mullock sampling over by Taganito Mining Corporation (TMC) over Masapelid in 2009 produced assays to 31.76g/t Au. Shallow vertical diamond drilling by TMC at the Gumod Ridge prospect recorded intercepts of 6m at 3.25g/t Au from 15m in drill hole M1-4 and 5m at 2.66g/t Au from surface in drill hole M5-2.

More recently, gold discoveries have been made by local villagers at Ellaperal on the east coast of Masapelid. Gold mineralization is contained in quartz veins within bedrock in a shoreline exposure.

 

Figure 4: Relationship between the Sabang copper-gold porphyry on the southern portion of the
Masapelid Project and epithermal gold mineralization extending north from Sabang to
Layong (Layab).

 

The Future

Drilling commenced in June 2011 on the former high grade gold zones on the Layong and Manuel Veins. An aggressive drilling campaign is planned for 2011 commencing with 1 diamond drilling rig and expanding to 3 drilling rigs in succeeding months. Lindian aims to announce an initial JORC resource within 12 months from the commencement of drilling for the Masapelid Project. The company's objective is to rapidly advance the project to mining studies within 24 months.

 

1 This information is contained within the Medusa Mining Limited ASX announcement of 25 January 2006 "Masapelid Island Gold Project" and was signed by a competent person under the JORC Code.



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