Geology and Exploration of the Favona Gold Silver Deposit

Favona is a blind low-sulfidation epithermal vein deposit in the Waihi Vein System approximately two kilometres east of the world class Martha Hill deposit that has produced nearly 6.8 M oz Au to date. The Favona epithermal system has surface expression in variously altered and mineralised hydrothermal eruption breccias forming a series of low hills that are windows through post mineral dacites and ignimbrites. The tip line of the Favona vein is about 50 û 100 m below surface with a steeply east dipping principal vein structure carrying numerous hanging wall splays in the upper flatter section and thickening down dip where the vein steepens. Host rocks comprise feldspar phyric andesite flows with minor pyroclastics. Although Favona has a strike length in excess of 1000 m and vein widths up to 25 m over a vertical range in excess of 400 m it was only recently discovered after nearly thirty years of exploration by various companies involved in the Martha Hill joint venture that operates the Martha Mine. Since discovery in 2001 a feasibility study based on 27.5 km of diamond drilling in 83 holes has been completed reporting a reserve of 1 Mt @ 10 g/t Au against a resource of 1.8 Mt @ 10.3 g/t Au. Exploration is continuing with a further 20.5km of diamond drilling completed to date on nearby prospects.