The Fair Adelaide project is a highly prospective group of tenements in the Ora Banda region of Western Australia. The Ora Banda district is located within a well-known mineral province with significant gold and base metal occurrences. The 213m Cawse lateritic nickel deposit is only 5km to the east and the project area covers the extension of the upper part of the mine stratigraphy.

Figure 1:  Fair Adelaide Project - Regional setting in a gold and nickel laterite terrain

Previous exploration has been focused around the historical gold workings, but the strike extent of the Fair Adelaide workings still remains largely untested. RAB drilling previously undertaken by Crusader at Fair Adelaide East Project returned a peak result of 12 metres @ 1.28 g/t gold. CAS considers that the geological setting is also similar to the Tarmoola deposit, the largest granite hosted gold deposit in the Eastern Goldfields which produced more than 1.6Moz of gold.

To the west of the Fair Adelaide gold workings, exploration by Crusader has identified a potential Nickel Laterite prospect named PuzzleBear Project. Crusader has carried out soil sampling and RAB drilling resulting in the identification of extensive Ni soil anomalies and drilling results to 13m @ 0.99% Ni (inc 3m @1.3Ni;) confirming the lateritic nickel prospectivity. Most recently Crusader has completed a soil sampling program which has identified new gold in soil anomalies at the Puzzle Bear Prospect.

The Fair Adelaide project is an advanced project, within an area of significant precious and base metal endowment and has returned significant gold and nickel results.

Fair Adelaide East Project

CAS completed two RAB drillholes in 2006 following up shallow historic intercepts of 17 metres averaging 1.1g/t Au (FAR024) and 24 metres averaging 0.52g/t Au (FAC003) (Figure 3). The drilling confirmed the supergene nature of the historic intercepts but importantly showed that gold mineralisation extended into a granitoid below the base of oxidation.

Geological interpretation shows that the contact between the granitoid and ultramafic rocks rolls over and steepens. The association of a steep granitoid contact with regional northwest shear zones is similar to the setting of granite-hosted gold mineralisation at the Tarmoola deposit, and provides a model to target gold mineralisation. Analysis of structural, geological, geochemical and magnetic data is in progress with the aim of identifying targets to be tested along with the next phase of work at Puzzle Bear.

Figure 2:  Fair Adelaide Gold Prospect - Cross Section XXXXN showing anomalous gold in the weathered zone and Tarmoola granite-hosted mineralisation target.

PuzzleBear Project

The geology is continuous with rocks that hosts laterite nickel-cobalt mineralisation at the nearby Cawse nickel mine (Norilsk Nickel Australia) and the Canegrass project (Nickelore Ltd) which is presently the subject of a pre-feasibility study.

A review of the results has focussed on a regional fault zone which may have acted as a locus for deeper and wider laterite nickel and cobalt concentration.

Planning is underway to extend the structural interpretation and regolith mapping across the tenements to assess the broader nickel laterite potential of the Fair Adelaide project.

Table 1:  Fair Adelaide - Anomalous nickel in laterite in CAS 2006 RAB drillholes

Gold Exploration Targets

A recent soil sampling program at the Puzzle Bear prospect has identified new gold in soil anomalies. CAS completed sampling on a 50 metre by 200 metre grid targeting a shear zone in ultramafic rocks. The sampling was aimed at following up a gold intersection of 1 metre @ 2.38g/t Au (PBR003 from 41m) in RAB drilling from 2006. Previous wide-spaced soil sampling had been conducted over the area in the mid-1990's, however the results did not reflect the later drilling and were considered unreliable.

Two anomalies of interest are identified (see Figure 3).

• A 300 metre long, northwest trending anomaly +10ppb gold can be extended to 900 metres if historic soil samples are included and then includes the gold intercept in drillhole PBR003.

This anomaly is spatially associated with the confluence of two regional faults, adding support to the integrity of the anomaly for follow-up exploration.

• A 42ppb gold anomaly on the northeast edge of the survey is open to the east, especially given that the historic sampling is considered ineffective.

An analysis of the structural geological, geochemical and magnetic data is in progress with the aim of identifying drill targets.

Figure 3:  Puzzle Bear Gold Prospect - Soil anomalies to be upgraded to drill testing