Geology

The Runruno deposit is located at the intersection of the margins of two district-scale calderas, major NE and NW fault lines and several late, small volume, composite volcanic centres.

Significant local uplift, intensive alteration and mineralisation demonstrate the presence of a large gold system with the geological potential to provide a significant resource of both gold and molybdenum.

Evidence from previous studies indicate the potential for significant further exploration beyond the exiting Runruno resource area. Evidence has been amassed via drilling, test pit Au+Mo+As anomalies and PDX sampling and mapping. This was supported further in March 2008 following a site visit by Dr Eric Jensen, an expert on alkaline intrusive gold mineralisation, where the potential for further mineralisation within the immediate area was highlighted.

Exploration currently focuses on a volcanic centre measuring ~3km in diameter. Geological features in this area include a syentic-monzonite intruded into a coeval trachytic, volcanoclastic and tuffaceous volcanics. The area is extensively argillised and argillic with alteration caps N to NE and trending zones of intense sulphide-phyllic alteration around the western and southern rim of the centre. Linear phyllic zones are exposed over a 1000-m x 200-m area within the argillic alteration at Cobocbocan Creek (~750-m ASL.) A broad (2600-m X 800-m) E – W moderate phyllic zone is located on the northern margin of the volcanic centre. The argillic cap is present from ~750-m ASL to the Cobocbocan Peak (970-m ASL.) Mineralisation appears constrained between 500-m to 750-m ASL.

Past sampling and drilling have established economic grade intercepts within these intense phyllic zones and further exploration and evaluation has demonstrated large untested extensions to the E and SE that may continue under and be obscured by the argillic alteration cap.