Pentland Project

Summary

ActivEX’s Pentland Project is located in the highly prospective North Queensland region, where large intrusive and porphyry related mineralised bodies are well known, such as Kidston, Ravenswood and Mt Leyshon.

Whilst the Company was successful in securing a $136,000 drilling grant for the project from the Queensland Government as part of the 2009 Smart Mining – Future Prosperity Program, this project was viewed as being high risk exploration. For that reason the Company decided to joint venture the project to China Yunnan Copper Australia Limited (CYU). CYU can earn up to 70% of the project by spending $3M on exploration over five years. The joint venture completed a three hole drilling program at the Mt Remarkable and Norwood prospects early in 2010.

Diamond drilling, Mt Remarkable

At Mt Remarkable, shallow drilling by previous explorers has encountered gold-copper-molybdenum mineralisation of porphyry style.

Work by ActivEX has identified a strong Induced Polarisation (electrical geophysics) anomaly close to the previously identified mineralisation but at a deeper level. The closest drill hole to the anomaly (DDH1) has intersected 47m @ 0.92g/t Au to 306m. The target anomaly, 800 metres long and 400 metres wide, was tested by one deep hole (MRD001) which intersected widespread but low density quartz stockwork veining throughout the hole. The stockwork contained traces of molybdenite and chalcopyrite throughout and is overprinted by an argillic alteration with associated pyrite which accounts for the geophysical anomaly. This hole appears to have intersected the peripheral parts of a large mineralised system.

Mt Remarkable IP Section and drillhole

CYU continues work in the area using 3D modelling to interpret the system and plan further drilling.

Molybdenite in quartz stockwork, Mt Remarkable

Molybdenite in quartz stockwork, Mt Remarkable

At Norwood, gold workings at the surface were historically worked by the Chinese. Shallow drilling by previous explorers looking for oxide gold, intersected scattered gold mineralisation with better intersections of 18 m @ 0.98g/t Au and 8 m @ 2.28g/t Au. ActivEX identified shallow dipping IP anomalies surrounding a magnetic intrusive diorite (porphyry) which has low grade gold associated. Two holes (NWD001 and 002) were drilled to test these anomalies. The drilling intersected dacitic volcanics and a sedimentary sequence which has been intruded by a large diatreme breccia. Once again late stage argillic alteration with disseminated pyrite overprints the lithologies, causing the IP anomalies. Narrow, sporadic quartz veins with low gold values were intersected in the drilling.