North Queensland

Summary

PepinNini Minerals has established a significant presence in North Queensland with 13 exploration tenements and 1 mining lease covering approximately 1,086 kms².

Priority gold and base metal exploration targets have been identified in EPM 15440 Percyville and EPM 15547 The Return whilst uranium and phosphate targets are identified in EPM 14834 Plain Creek.

Gold and Base Metals

Surface sampling programs completed during 2008 and 2009 within EPM 15440 Percyville have identified four priority prospects that require further investigation and drilling. Some of the more significant assays at each of the prospects include:

During September/October, 2010 nine reverse circulation (RC) holes were drilled at the Union and Spring Valley Prospects.  The drilling program was designed to investigate high-grade gold, silver and copper mineralisation previously detected in surface outcrops and shallow historic workings.

The following high grade gold intersections were intersected;

• Borehole RC10PV003 intersected a 2 metre interval grading 0.93g/t gold at 20 metre depth, a 4 metre interval grading 4.65g/t gold and 69.75g/t silver at a depth of 33 metres (including 1 metre at 14.85g/t gold and 223g/t silver), and a 1 metre interval grading 4.66g/t gold and 9g/t silver at 52 metre depth,
• Borehole RC10PV006 intersected a 2 metre interval grading 6.45g/t gold and 1.35g/t silver at a depth of 13 metres,
• Borehole RC10PV007 intersected a 2 metre interval grading 3.48g/t gold and 4.66g/t silver at a depth of 14 metres.

These encouraging drill intersections are interpreted to represent the lateral and vertical extensions of mineralised zones detected on the surface

The Return Prospect

Rock chip sampling conducted in late 2008 reported gold grades of up to 32.7 g/t on EPM 15547 – The Return.  In April 2009, an additional 90 samples were collected to further assess the potential of this tenement and define the extent of the outcropping reefs and prospective zones for drilling.
Several new vein systems were identified. Rock chip samples have returned gold values ranging from 0.1 g/t (country rock)  to 1,710 g/t (55 ounces).  Significant silver grades of up to 20 oz/t were also assayed.
Of the 115 rock chip samples collected approximately 80% reported economic gold grades (or higher) with 12% of sample reporting a grade in excess of 1 ounce per tonne.
During September, 2010 sixteen reverse circulation (RC) holes were drilled to further investigate the high-grade gold, silver and copper mineralisation detected in surface outcrop or within shallow historic workings at Forsayth (EPM15547 “The Return”). The results include the following high grade gold intersections;

• Borehole RC10RT004 intersected a 2 metre interval grading 10.1g/t gold, 33g/t silver and 0.6% copper at a depth of 21 metres.
• Borehole RC10RT010 intersected a 3 metre interval grading 2.04g/t gold and 6g/t silver at a depth of 45 metres, a 3 metre interval grading 7.16g/t gold, 12.6g/t silver and 0.21% copper at a depth of 63 metres (including a 1 metre interval grading 20.3g/t gold, 35g/t silver and 0.6% copper) and a 2 metre interval grading 1.3g/t gold, 3.2g/t silver at 152 metres.
• Borehole RC10RT013 intersected a 1 metre interval grading 8.1g/t gold at a depth of 36 metres

Although numerous shallow historic workings occur across EPM15547 “The Return” there has not been previous drilling to test the extent of the mineralisation at depth. These encouraging high-grade drill intersections are interpreted to represent the lateral and vertical extensions of mineralised zones detected in the surface outcrops and historic workings confirming potential for continuity of a high grade zone.

Uranium, Phosphate Rock and Potash

On 8th December 2008, PepinNini announced that results from a reconnaissance and surface sampling program confirmed high-grade uranium (up to 2,288ppm U3O8) and phosphate (up to 22.9%) mineralisation within EPM 14834 Plain Creek. A total of 48 samples were collected during a reconnaissance survey conducted during October 2008. Some of the more significant assay results included:

• 22.9% P2O5, 1,450ppm U3O8
• 16.3% P2O5, 2,288ppm U3O8
• 15.9% P2O5, 1,828ppm U3O8
• 14.4% P2O5, 1,108ppm U3O8
• 12.7% P2O5, 1,014ppm U3O8
• 11.2% P2O5, 2,170ppm U3O8

A follow up helicopter assisted reconnaissance sampling survey of EPM14834 Plain Creek, EPM15990 Rush and EPM16537 Loyo was undertaken between 19th and 29th January 2009. A total of 127 sites were inspected during the sampling program and a total of 90 rock samples collected. Assay results confirm high uranium, phosphate, potash and strontium grades occur in all 3 tenements at a number of prospects. Highest grades reported from the samples submitted were:

• Highest Uranium       3,513 ppm U3O8 from Sassafras Creek Prospect
• Highest Phosphate     21.4% P2O5 from Robyn Lorraine West Prospect
• Highest Potash          5.8% from Sassafras Creek & Homestead Prospects
• Highest Strontium      5,630 ppm from Robyn Lorraine West Prospect.

EPM 14834 (Plain Creek) is located approximately 190km south of Charters Towers within the Devonian to Carboniferous Drummond Basin. It is connected by sealed road to the port of Townsville approximately 300kms to the north.