REO
Lece

Lece Permit in the Vardar Zone, SE Europe

Sketch Map of the Permit area within the Neogene Lece Volcanic Complex, Serbia

Distribution of occurrences and Au geochemistry, Brajsor Area

Trench sampling, Vrelski Potok

Vrelski Potok drilling position map with Au geochemistry from surface sampling

Vrelski Potok Cross Section

Drilling at Vrelski potok

Trench Sampling from silica zone, Spurina Glavina

Drilling at Spurina Glavica

Vuggy silica core from Spurina Glavica

Lece Exploration Permit


Background

The Lece gold-zinc-lead mining concession borders on the Exploration Permit. The Lece mine has worked a quartz-galena-sphalerite vein-breccia system since 1933. The mine had an annual capacity of 90,000 tonnes per year ore, and produced a lead and zinc concentrate with gold credits. There are 4 levels to a depth of 170 m. Production from Lece ceased in 2001. The Lece volcanic complex includes several other occurrences of both epithermal vein-breccia gold-lead-zinc and quartz stockwork copper mineralization.

Geology and Mineralization

Neogene andesite volcanics and volcaniclastics of the Lece Volcanic Complex, which covers an area of approximately 750 sq km, unconformably overlie Palaeozoic metamorphic basement. Previous work has identified several volcanic centres as well as numerous zones of intense hydrothermal alteration within the Complex, several of which are associated with mineral occurrences. The Exploration Permit contains several occurrences of lead-zinc vein-breccia mineralization, where previous work included underground exploration adits and wide-spaced drilling. The Permit is adjacent to the Lece mine concession, where the mineralization consists of sulphide mineralization in structurally controlled zones of silicified and brecciated andesite and vein quartz. Average grades were 3 -- 4 g/t gold, with some blocks containing 30 g/t Au. Overall resources vary (according to methodology, cut-off, minimum mining widths, etc. -- none to accredited standards) from about 2.2 Mt @ 3.83 g/t Au, 21.03 g/t Ag, 3.8 % Zn and 1.95% Pb to 3.4 Mt @ 3.33 g/t Au, 24.45 g/t Ag, 3.5% Zn and 1.8% Pb. Porphyry-style stock work mineralization has been described from deep drill holes under the Lece mine.

Title and Area

The Lece Exploration Permit was granted to SEE d.o.o. on June 23rd 2003, and covers an area of 51 sq. km.

Exploration Status

Two target areas of interest have been identified by reconnaissance work, and have been subject to a shallow drilling programme.

The Spurina Glavica occurrence, together with isolated anomalous samples north of Muratov Potok, consists of gold mineralization in variably silicified and limonitised volcaniclastics. These occurrences are all located at elevations of 750 -- 800 m. The silicified zone was sampled from pits and trenches that had been dug during an earlier exploration phase, and cover an area of about 200 x 60 m on an E-W trending ridge. Re-sampling of two old trenches yielded, respectively, 29 m @ 0.59 ppm Au including 4 m @ 1.45 ppm Au, and 26 m @ 1.35 ppm Au including 6 m @ 2.45 ppm Au. Additional continuous chip sampling from outcrops about 180 m east of these trenches yielded 3 m @ 7.07 ppm Au, 2 m @ 3.10 ppm Au and 2 m @ 1.39 ppm Au. Three diamond drill holes for a total of 241.95 meters have been completed on the Spurina Glavica target, where previous trenching of intensely silicified andesites returned 26 meters at 1.35 grams per tonne ("g/t") Au including 6 meters at 2.45g/t Au. Two of the drill holes intersected the target structure within the oxide zone. The best intercept from drill hole SG-1 is 14.5 meters grading 1.12 g/t gold, which includes a zone of 6.8 meters at 2.11 g/t gold. The gold mineralized intercepts are associated anomalous mercury, arsenic and antimony values. Anomalous copper values (maximum 4310 parts per million copper over 1.5 meters) were encountered in a zone of fractured and partially oxidized andesites from 33.4 to 53.7 meters in drill hole SG-1.

The Vrelski Potok occurrence is one of a series of epithermal gold and base metal targets within a 3 kilometer anomalous trend defined by mapping and rock chip sampling on the Lece property. Mineralized structures are marked by silicification, quartz veining and brecciation of the andesitic volcanic host rocks. Six diamond drill holes for a total of 247.7 meters have been completed on the Vrelski Potok target, all of which intersected the mineralized structure within the oxide zone. The best intercepts are 9.2 meters grading 2.11 grams per tonne ("g/t") gold and 19 g/t silver, which includes a zone with 3.9 meters at 4.06 g/t gold and 30 g/t silver in diamond drill hole VP-1, and 1.3 meters grading 2.16 g/t gold and 22.6 g/t silver in diamond drill hole VP-5. In addition, all the mineralized intercepts yielded anomalous lead and zinc values.


Lece Permit Area



Target Areas, Lece



Longitudinal section through drilling at Vrelski Potok



Spurina Glavica geology and geochemistry
 
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