Dunolly East Project

RC drilling at Specimen Reef

Octagonal Resources Ltd (ASX code: ORS):

Location:

Dunolly, Central Victoria, 60 kilometres west of Bendigo.

Owner:

Highlake Resources Pty Ltd (100% EL4904)

Highlake Resources is a subsidiary company wholly owned by Octagonal Resources Ltd

Regional Geological Setting:

Ordovician turbidite sequence tightly folded about north-south axial planes.

West dipping, strike sub-parallel faults offset fold axes.

Target Metals:

Gold

Mineralisation Setting:

Gold associated with quartz carbonate veins in preferred sandstone-shale package.  Veins proximal to fold axes, possibly controlled by faults following axial planar cleavage.  Late stage brittle faults offset .

Exploration History:

Part of the historic Dunolly Gold Field, with numerous pits and shallow workings on two parallel quartz reefs (Specimen Reef and Doctor’s Reef) can be traced over greater than 1,000 metres strike length. Both reefs occur as discrete medium to wide quartz veins with associated stock work stringer vein zone envelopes.

Drilled by Carpentaria Gold (1981), BHP Minerals (1990) and Goldsborough NL (1994-1996) with results including 2m @ 4.6 g/t Au from 6m, 4m @ 7.8 g/t Au from 13m, 1m @ 8.3 g/t Au from 24m  and 1m @ 8.2 g/t Au from 8m.

Octagonal drilled 14 holes prior to engaging EMS, obtaining significant intersections such as 3 metres grading 22.8 g/t Au from 41 metres, 4 metres grading 2.9 g/t Au from 46 metres, 7 metres grading 4.8 g/t Au from 24 metres, 5 metres grading 2.3 g/t Au from 23 metres, and 9 metres grading 2.1 g/t Au from 6 metres.

Exploration Results:

Drilling overseen by EMS in 2011-2012 successfully proved continuity of mineralisation over 440 metres strike length, and mineralisation remains open to the north, south and at depth.

Exploration Tools & Methodology:

RC drilling – pattern drilling on 30 x 15 metre centres.

Data analysis including statistical analysis of assay data and QC data.  Block modelling using Micromine software and Resource Estimation.

 

Resource Potential:

Maiden Inferred Resource of 114,000 tonnes grading 2.9 g/t Au for 10,480 ounces of gold.  The resource is based on drill results over 440 metres strike length, to a depth of 60 metres.

Potential for upgrading and increasing this resource.

Mining Licence has been granted, and Octagonal are planning mining operations

Further Information:

Octagonal Resources quarterly reports to ASX www.octagonalresources.com.au