 Mount Windsor Volcanics Project (100% Liontown Resources Limited)
Introduction The Mount Windsor Volcanics Gold Project covers over 3,500km2 of prospective ground centred approximately 40km south of Charters Towers in North Queensland (Figure 1). The Charters Towers region has seen prolific metal production, with an endowment of over 18 million ounces of gold, 350,000 tonnes of zinc, 300,000 tonnes of copper, 90,000 tonnes of lead and 200,000 ounces of silver. Six plus 1 Moz gold camps have been discovered within the immediate region. On 16 April 2010, Liontown and Ramelius Resources Limited (“Ramelius”) announced that they had agreed to terms for a Farm-in Joint Venture Agreement which will accelerate exploration on the Project including the drill testing of the targets described below. Ramelius can earn up to a 60% interest in the Project by spending $7 million over 4 years with a minimum commitment of $1.25 million in the first year.
Figure 1: Mt Windsor Volcanics project showing regional geology, gold targets and major gold deposits Exploration PotentialThe project is considered to be prospective for a range of gold deposit styles including breccia/intrusion related gold deposits such as at Mount Wright and Mount Leyshon and epithermal gold deposits similar to those at Pajingo. These deposits are all located within a 40 kilometres of the Project. Despite the high gold endowment of the Charters Towers region, there has been remarkably little gold-specific exploration within the Mount Windsor Volcanics Project. Critical to Liontown Resources’ exploration has been the development of models with vertical zonation in both precious and pathfinder geochemistry, alteration mineral zonation, particularly in the clays and white micas, and vein textures and patterns. Using these models for both breccia pipes and existing well understood models for epithermal systems, exploration can effectively target the gold rich windows within these vertically zones systems. The recent discovery of deep, high grade gold mineralisation by Resolute Resources (113 metres @ 7.7g/t gold from 316 metres depth including 19 metres @ 31.3g/t gold) at the Welcome Breccia north of the Mt Windsor Project (Figure 1) validates Liontown’s exploration concepts and enhances the Project’s prospectivity. Summary of Exploration Results Geological interpretation and exploration targeting using the latest regional aeromagnetic and radiometric datasets has identified over 40 potential gold-bearing Carbo-Permian breccia, intrusive and epithermal systems within the Project area (Figure 1). Results from initial reconnaissance have provided strong encouragement that several targets may represent the tops of vertically zoned gold systems and that the Project holds exciting gold potential. The Company is looking forward to rapidly defining further gold prospects that will provide a focus for future drilling.
High Priority Gold Targets Target G-5 Prospecting has outlined a 500m x 100m area of chalcedonic veining in brecciated granite. Float samples reported up to 2g/t gold, 701g/t silver, 1645ppm arsenic, 148ppm antimony, 12.45ppm mercury, 1.67% lead and 59.4ppm molybdenum (Figure 2), with significant gold, silver and pathfinder element results returned from a 285mx 100m area within the broader vein envelope. The geochemistry and texture of the veining suggest this is the upper part of either an epithermal system, or possibly the near surface part of a breccia pipe with the gold rich target window located 100 - 200 metres below the current land surface.
Figure 2 : G-5 geology and rock chip sampling An IP survey completed in late 2009/early 2010 defined a coincident resistive and chargeable anomaly over a 600 by 300 metre area 100-200 metres below the mineralised float samples (Figure 3). The IP anomaly may be caused by quartz veining and associated alteration and represent the source of the mineralised vein float. The G-5 target is drill ready and testing is scheduled for the second quarter of 2010. 
Figure 3: G-5 IP image showing resistive and conductive targets immediately below mineralised vein float Target G-14 Target G-14 comprises brecciated and altered rhyolite intruded into regional hornblende granodiorite (Figure 4). The brecciated rhyolite is intruded by further rhyolitic dykes, and contains polymictic clasts, including rounded xenocrysts of granite. Soil sampling has defined a strong silver anomaly, located over the contact of the brecciated rhyolite and granite, some 1,200m long and 400m wide. Rock chip sampling suggests the silver anomaly is derived from a broadly spaced stockwork of ferruginous fractures/veins developed in the rhyolite and probably in the granodiorite, with assays including 51ppb gold, 5.96ppm silver, 376ppm arsenic, 31.4ppm antimony, 168ppm copper, 1.99% lead, 1740ppm zinc, 4.13ppm bismuth and 22.3ppm molybdenum. Again, the geochemistry suggests a high level breccia related mineralised system is developed, and deep IP and drilling is warranted to test for gold rich parts of the system (Figure 5). 
Figure 4 : Target G-14 - magnetic image showing rhyolite breccia and Ag-in-soil anomaly (>0.5ppm Ag) 
Figure 5 : Schematic model for Target G-14, showing interpreted target depth Target G-20 (Mosquito Hill) Mosquito Hill is a prominent topographic high comprising silicified shale and siltstone centred over a positive magnetic annulus interpreted to be a Carbo-Permian ring dyke (Figure 6). Liontown’s sampling has reported significant pathfinder geochemical anomalism, with trace silver, from selected breccia zones in the siltstone. These are interpreted to represent the possible top of a vertically zoned breccia system, with potential gold enriched zones developed at depth beneath this cap, as is observed in Mt Wright breccia system at Ravenswood.
 Figure 6: Mosquito Hill Prospect - magnetic image showing anomalous Sb-in-soils (yellow and orange squares) coincident with NE part of circular feature Target G-22 (Mt Redan) Sampling at G22 has identified a large area (1,500 x 1,700m) of coincident Sb-Hg-As soil anomalism (Figure 7) with coincident rock chip values up to 0.46% As, 507ppm Sb and 46ppm Hg. While there is no precious metal values recorded at surface, results from historic (early 1990s) RC holes reported results including 1m @ 0.42g/t gold and 9ppm silver, and 4m @ 0.14g/t gold and 3g/t silver within 50 metres of the surface indicating there are significant precious metals in the system. The rock, soil and historic drill hole geochemistry is consistent with Mt Redan representing the top of a Pajingo style epithermal deposit. The gold rich part of the system is interpreted to occur 100-200 metres below the current surface as shown in Figure 8. 
Figure 7A : G-22 magnetic image and Sb-in-soil (>10 ppm) anomaly 
Figure 7B : G-22 magnetic fimage and HG-in-soil (>50 ppb) anomaly  Figure 8 : Section through a generalised epithermal system, showing the current level of exposure at Mt Redan, and the Target Window Target G-13 (Plateau Prospect) Previous work outlined a sulphide-bearing breccia system located around the margin of a Carbo-Permian felsic intrusive associated with a discrete magnetic low (Figure 9). Drilling by Esso Minerals and City Resources in the mid 1980’s intersected up to 89 metres @ 1.57g/t gold (open hole percussion) and historical rock chip sampling from the same area has reported gold values to 14.2g/t. A later deep hole by Newcrest Mining into the core of the breccia confirmed the system continues at depth (>500 metres), however, a recommended deep penetration Induced Polarisation (IP) survey was not completed. Future work at G13 will target both the undrilled northern part plus strike and depth extensions of the southern breccia zone. 
Figure 9 : G-13 (Plateau) and G-14 targets on Reduce to Pole magnetic image |