Pe Quente Prospect


The Pe Quente prospect is situated approximately 26km southeast of the town of Peixoto de Azevedo in northern Mato Grosso State, Brazil. Pe Quente is host to several garimpo (artisanal) workings, with a high proportion of the shallow workings in the area located on in-situ mineralisation hosted in the weathered profile of the Matupá granitic sequence following a regional scale northwest structural trend. The Pe Quente Project has identified both quartz vein hosted gold and copper mineralisation, and disseminated style gold and copper mineralisation hosted within the favourable Matupá intrusion sequence.

The veins at Pe Quente have characteristics of epithermal style veins and are suspected to be related to nearby porphyry style mineralisation venting metalliferous fluids. Exploration of these veins (both) provides resource potential, and the continuity, geometry and the changing metallogeny of these vein systems define vectors towards large porphyry targets in the district. Among multiple veins with anomalous gold values at surface, the PQ002 Copper-Gold Vein Zone has been targeted with follow-up drilling to depths of 50m vertical extent, and better intercepts include 7.62m at 6.46 g/t Au (1PQ002), and 4m at 4.39g/t Au (2PQ019). The recent drilling programmes have defined good continuity of mineralisation along strike of the east-west trending mineralised zone. Mineralisation is confirmed for 350m of strike length and is open in all directions, with a scout hole (PQ037, 1m @ 1.2g/t Au) intersecting additional mineralisation 300m east. Additional work is required to confirm the intercept is on the same structure.

Disseminated style gold-copper mineralisation is intersected in diamond hole PQ003 (7.1m @ 6.58g/t Au) and down-dip tests of the same zone returned significant gold and copper intercepts including in hole PQ014, which returned 5.6m at 2.24 g/t Au from 64.4m and 9m at 1.27% copper from 70m drilled depth. The intense alteration of granitic wall rock associated with the disseminated style mineralisation at Pe Quente is indicative of high hydrothermal fluid flow and is suggestive of fluid pathways related to a feeder system.

The most recent drilling campaign at Pe Quente was completed in January 2012 with a total of 3,317m diamond drilling completed in 26 drill holes. The Pe Quente program was initiated with 7 holes that doubled the strike extent of the PQ002 Copper-Gold Vein Zone to over 350m of strike length (3PQ021-PQ027). An additional two holes (PQ042 and PQ043) test both down-dip targets, and a parallel mineralised zone that was identified in upper portion of drill hole PQ024. PQ043 intersects the targeted zone at approximately 85m vertically below the surface, with a relatively narrow intercept for the zone of 1.25m @ 2.41g/t Au and 0.24% Cu from 138.85m drilled depth.

Other drill holes in the program tested a combination of targets generated from geophysics (14 line km, pole-dipole IP survey completed in August 2011) and surface geochemistry targets across 2.5km northwest trend. The program comprised one and two hole tests on 14 separate targets. Results are being compiled and interpreted to identify follow-up targets for the Pe Quente area.

FOOTNOTES

  1. PQ002 results initially reported by IGS:ASX news release dated 18 January 2011
  2. PQ019 results initially reported by IGS:ASX news release dated 23 May 2011
  3. PQ021-027 results reported by IGS:ASX news release dated 08 December 2011
Hole ID Easting Northing From
(m)
To
(m)
Interval
(m)
Au (g/t) Cu (percent) Ag (g/t)
Pe Quente
PQ001 741887 8851329 32 35.05 3.05 1.85 >1.00% 125
PQ001 38.01 39.62 1.61 1.14 0.13%
PQ001 45.72 47.24 1.52 0.48 >1.00% 24
PQ002 741920 8851325 21.33 22.86 1.53 1.48
PQ002 35.05 42.67 7.62 6.46 0.08% 29
PQ003 742106 8851022 35.5 42.6 7.1 6.58
including 35.5 38 2.5 9.21 13
including 38 39.3 1.3 12.39 0.49% 21
including 40.8 42.6 1.8 4.15 0.26% 14
PQ004 742412 8850646 25.6 25.8 0.2 1.3
PQ005 742333 8850682 31 32 1 5.18 0.46% 54
PQ007 741840 8851346 56.55 57.1 1.15 5.18 1.21% 18
PQ007 57.7 58.65 0.95 0.13 0.23%
PQ007 60.75 61.2 0.45 1.625 0.09%
PQ008 741920 8851355 109.15 110.6 1.45 2.09 1.78% 109
PQ009 741889 8851334 52.25 53.7 1.45 3.49 577
including 0.75 5.95 14.98%
PQ014 742105 8851030 64.4 80 15.6 0.95 0.92%
including 64.4 70 5.6 2.24 0.45% 8
including 70 79 9 0.23 1.27%
PQ014 82.6 85.45 2.85 1.19
PQ015 742089 8851010 78.8 80.65 1.85 2.66
PQ015 82.5 83.5 1 0.08 0.28%
PQ015 84.5 86.2 1.7 2.98
PQ019 741992 8851343 80.1 82 1.9 1.84
PQ019 86.1 90.1 4 4.39 17
PQ020 742081 8851337 22 25 3 0.61
PQ021 741829 8851250 28.6 28.9 0.3 4.39 0.32%
PQ022 741789 8851264 47.9 48.4 0.5 1.82
PQ024 741952 8851276 44.8 46.4 1.6 3.86 0.41% 44
PQ025 742030 8851274 58 59 1 2.75
PQ026 742031 8851240 100.75 102.86 2.11 5.18
including 102.3 102.86 0.56 13.58
PQ027 742111 8851252 103.25 103.5 0.25 3.24 125
PQ029 742038 8851024 10 11 1 4.39
PQ037 742386 8851402 32 33 1 1.18
PQ042 741910 8851197 11 12 1  2.21
PQ042 16 17.05 1.05 1.05
PQ042 145 146 1 1.22
PQ043 741750 8851199 138.85 140.1 1.25 2.41 0.24%

TECHNICAL NOTES:

Samples assayed are ½ diamond core cut at the Company’s core yard at Peixoto de Azevedo
Assay results SGS-Geosol Laboratory, Brazil, Fire Assay method. All assay numbers are reported as un-cut and all intercepts reported as drill thickness and are not to be interpreted as true thickness unless otherwise indicated.

Gold intersections are based on a 0.5 g/t gold lower cut-off, no upper-cut applied and maximum 2m internal dilution.
Copper intersections are based on a 0.1% Cu lower cut-off, no upper-cut applied and maximum 2m internal dilution

Competent person statement

The information in this report that relates to exploration results is based on information compiled by Mr Travis Schwertfeger.  Mr Schwertfeger is the Chief Executive Officer of International Goldfields Limited.  Mr Schwertfeger is a member of The Australian Institute of Geoscientists and has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2004 Edition of the ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves’.  Mr Schwertfeger consents to the inclusion in the report of the matters based on information in the form and context in which it appears.