Gladstone Hill - Martha Hill Part II

Mineralisation was identified at Gladstone Hill as far back as the late 1870's û early 1880's, shortly after the initial discovery of Martha Hill. Indeed, early recovery problems from the Martha Hill mineralisation led to the preferred development of are bodies within what is now the Union Hill Joint Venture tenement; ore bodies such as Silverton, Amaranth, Union to name a few. Work at Gladstone Hill is carried under the Union Hill Joint Venture, a 50:50 joint venture between Auag Resources Ltd - manager (a fully owned subsidiary of Otter Gold Mines Ltd) and Welcome Gold Mines Ltd (a fully owned subsidiary of the Normandy Group). The joint venture participants also operate the adjacent Martha Hill operation. Mineralisation of Gladstone Hill, as with mineralisation at the adjacent Martha Hill, has been interpreted as a low sulphidation epithermal Ag-Au system hosted within hydrothermally altered andesites of the lower Coromandel Group. Drilling in recent years has successfully identified extensive mineralisation associated with the Gladstone vein set and the more recently identified high grade Moonlight Lode. Veining ranges in character from thin stock works to broader lode-style banded chalcedonic to cherty quartz. Visible gold is rare, with mineralisation generally associated with very fine-grained pyrite, arsenopyrite and minor electrum. The potential for the Gladstone Hill area is yet to be clearly defined as drilling to date has yet to close off mineralisation both along strike and down dip. If further drilling is successful, the joint venture partners believe Gladstone Hill could contribute significantly to the economic future of current operations.