OPERATIONS

Gourma Project (BOE 100%)

The Gourma Project is located 250km east of Ouagadougou, within the Fada N'Gourma Greenstone Belt (Fig. 1). The Project consists of 4 contiguous permits (Diabatou, Tyara, Foutouri and Boutouanou) that cover a total area of 850km2. It is accessible from the south off the Fada N'Gourma-Kantchari highway via a well maintained gravel road and from the west via a gravel road from the town of Gayeri.

The Gourma Project, and in fact the entire eastern corner of Burkina Faso, has undergone very little previous exploration. The vast amount of artisanal workings associated with strike extensive structures within the typically gold rich Birimian greenstone units in the region suggest large gold deposits will be discovered in the near future. There is no previous geochemistry or drilling information available for the Gourma Project permits. Boss Resources Limited owns a 100% interest in the project.

Figure 1: Burkina Faso simplified geology and Boss Resources Limited granted exploration permits (pink outlines)

Geology

The Gourma permits cover a NE-trending sequence of Birimian greenstones and felsic intrusives that host abundant artisanal workings and associated strike extensive regional shear zones (Fig 2-3). Broad sericite-carbonate-chlorite alteration zones are typically coincident with the artisanal workings and gold bearing NW-trending shear zones.

Figure 2: Gourma Project artisanal workings (labelled) and Boss Resources Limited exploration permits (pink outlines) over BRGM 200K geology. Phyllites and pelitic schists (bright green), tuffaceous schists and mafic tuffs (medium green), leucocratic alkaline gneiss (light green), basalt, andesite, microdiorite and undifferentiated mafic volcanic units (pale blue), diorite and gabbro (medium blue), post tectonic granite (red), basement granites (pink).

Figure 3: Gourma Project rock chip sampling results and prospects (labelled), interpreted structures/shear zones (black lines), post-Eburnean dolerite dykes (green lines) and Gourma Project Permit extent (black outline) over aeromagnetic image (RMI).

Gold Mineralisation

The Fada N'Gourma Greenstone Belt extends discontinuously in a NE-SW direction from the Gourma Project to the 50,000 ounce per annum Youga Gold Mine (reserves and resources of 1.1 million ounces) on the southern border of Burkina Faso. The Gourma Project is only 80km SSW of Niger's largest gold deposit, the 50,000 ounce per annum Samira Hill gold mine (1.9 million ounce project).

Gold mineralisation within the Gourma project is instantly recognizable by the extensive amount of artisanal mining being conducted throughout the permits. Over two thousand miners are actively working at Tambiga Hill (Fig. 4), and hundreds of others working at the Diabatou (Fig. 5) and Gariaga prospects within the Diabatou permit. Tambiga Hill contains over 1,000 NE-trending pits and shafts up to 60m deep that cover an area approximately 500m x 250m. Gold mineralisation is associated with stockworked quartz-sulphide veining within strongly altered mafic to intermediate schists. The prospect is located on a +10km long NE-trending linear magnetic low (interpreted as the Tambiga shear zone) clearly visible in regional magnetic images (Fig. 3).

The Diabatou and Gariaga prospects both contain numerous NE to NNE-trending pits and shafts excavated into steeply dipping quartz veins within sericite-chlorite schists. Active hard rock and colluvial workings cover an area of 1.6km x 400m at Diabatou and 1.3km x 800m at Gariaga. Aeromagnetic images confirm the continuation of the mineralised structure for an additional 1.5km beneath alluvial cover between the two prospects for a total strike length of more than 4km. Six out of 17 rock chip samples collected from the Diabatou Prospect (35%) returned assay values greater than 1g/t Au, including best results of 21.7g/t Au, 6.3g/t Au and 4.1g/t Au from both quartz vein and mafic schist adjacent to north-south and NE-trending artisanal workings (Fig. 5).

Extensive active artisanal workings are also present within the Boutouanou permit. Artisanal prospects within the Boutouanou tenure are located on NE and NW-trending shear zones containing quartz veined strongly sericite-chlorite altered porphyritic diorite. Felsic dykes are common within the mineralised zones and visible gold was observed within ferruginous quartz veins at the Boutouanou and Sefatendano prospects (Fig. 6). Twenty of the 62 samples collected from the Boutouanou permit (32%) returned assay values greater than 1g/t Au, including best results of 42.4g/t Au, 35.6g/t Au and 12.2g/t Au from the Tanmbouana Prospect, 4.1g/t Au and 3.6g/t Au from the Sefatendano Prospect, and 21.3g/t Au, 7.4g/t Au, 6.5g/t Au and 6.0g/t Au from the Boutouanou area. The samples included quartz veined altered mafic and felsic units from a series of artisanal workings spread over a strike length of 1.9km between the Tanmbouana and Sefatendano workings and 2.3km at Boutouanou (Fig. 3).

Gold mineralisation within the Foutouri permit consistently trends NE-SW coincident with strike extensive linear magnetic lows. Artisanal workings are focussed on ferruginous quartz-sulphide veining within strongly sheared clay altered diorite, chlorite schist and minor felsic porphyry units. Six out of 16 rock chip samples collected from the Foutouri Prospect (38%) returned assay values greater than 1g/t Au, including best results of 21.6g/t Au, 11.4g/t Au and 4.7g/t Au from smoky vein quartz and/or mafic schist surrounding NE-trending artisanal workings. Aeromagnetic imagery suggests this mineralised trend could extend to the southwest for a distance of at least 4.5km to the Souonkobou Prospect (rock chip values up to 19.2g/t Au), or possibly over a strike length of 7km to the Bongori South Prospect that returned rock chip assays of 12.0g/t Au, 3.4g/t Au and 2.0g/t Au (Fig. 3).

Nineteen of the 21 samples collected from the Tampora and Lotto prospect areas (90%) returned assay values greater than 1g/t Au, including best results of 55.3g/t Au, 8.9g/t Au and 8.8g/t Au from Tampora Main Prospect (Fig. 7), 19.7g/t Au, 14.2g/t Au, 11.0g/t Au, 8.6g/t Au and 7.6g/t Au from the Tampora South Prospect and 3.5g/t Au, and 6.4g/t Au from the Lotto Prospect. The samples included both quartz vein and altered mafic schist mullock from NE-trending artisanal workings over a strike length of more than 2km (Fig. 3).

No previous surface geochemistry or drilling has been conducted at any of the fore mentioned prospects. High grade rock chip results associated with strike extensive structures suggest first pass exploration programs planned for the project will be very successful. A regolith / residual soil interpretation based on SPOT, Landsat, and IKONOS satellite imagery has been completed and a first pass regional auger drilling and soil sampling program has been planned within appropriate regolith regimes across the entire Project. Soil sampling is underway, with auger drilling due to commence by mid-November.

Figure 4: Tambiga Hill artisanal workings - looking NE

Figure 5: NE-trending pits, shafts and colluvial workings at the Diabatou Prospect.

Figure 6: Gold in Quartz from the Sefatendano prospect (Boutouanou Permit).

Figure 7: Collapsed artisanal open pit at the Tampora prospect (Foutouri Permit).