Punt Hill

Monax 100% - EL 4642 (Punt Hill)  & EL 4548 (Yeltacowie)

Iron Oxide Copper-Gold (IOCG) style mineralisation

The Punt Hill project is located approximately 130km north of Port Augusta and comprises EL 4642 and EL 4548 (Figure 1).

Punt Hill is located on the eastern margin of the Gawler Craton within the Olympic Iron Oxide Copper-Gold (IOCG) Province.  The Olympic IOCG Province is host to the world class Olympic Dam deposit, Prominent Hill, and the recently discovered Carrapateena prospect.  Punt Hill (EL 4642) is 25 km south of Carrapateena and Yeltacowie (EL 4548) is located approximately 30km west of Carrapateena.

The Carrapateena Prospect (Oz Minerals) is a complex haematite breccia extending at depth from 470m, intersecting variable sulphide mineralisation over 900m (Hole 50 reported 905M @ 2.1% Cu and 1g/t Au). Drilling stopped in mineralisation, the style of which is similar to Olympic Dam and Prominent Hill.

The Punt Hill tenement contains numerous coincident/semi-coincident gravity and magnetic anomalies, which appear to be structurally controlled along a regional north-west fault (Figure 1). A geochnronology study conducted as part of the PIRSA 'PACE Geochronology' program confirmed that the alteration and mineralisation at Punt Hill is part of the same IOCG event on the Gawler Craton responsible for the world class Olympic Dam deposit.

To date, Monax have drilled 22 holes totaling 19 860m over 10 regional targets with the best results coming from the Groundhog (GHDD) prospect (see Figure 2 and Figure 3).  Hole GHDD6 reported 159m @ 0.47 Cu, 5.3 g/t Ag, 0.12 g/t Au, 0.48% Zn & 0.12% Pb (from 846m to 1005m) including 17m @ 1.1% Cu, 1.2% Zn & 8.5 g/t Ag (853m to 870m).

Thick intersections of copper were also reported at Woodchuck (70m @ 0.41% Cu from 683m; including 28m @ 0.82% Cu & 10 g/t Ag in hole WDDD1), Whistlepig (60m @ 0.13% Cu from 788m in hole WPDD1) and Prairie Dog (99m @ 0.24% Cu from 876m in hole PDDD2).

Yeltacowie (EL 4548) is located to the north of EL 4642 and appears to contain similar basement rocks to EL 4642.  EL4548 contains two drill holes that intersected basement at ~370m depth.  Both holes terminated in felsic volcanic interpreted to be Gawler Range Volcanics.

In August 2010, Monax signed an option agreement over the Punt Hill project with a major international copper mining company, Antofagasta PLC ("Antofagasta"), through its wholly-owned subsidiary Antofagasta Minerals S.A. (AMSA).

Antofagasta is a Chilean based copper mining company listed on the London Stock Exchange which owns and operates three copper mines in Chile. Antofagasta produced 442,500 tonnes of copper in 2009 and is forecasting an increase in production to 700,000 tonnes in 2011, ranking it as one of the top 10 copper producers in the world. Antofagasta is looking to grow its portfolio and currently has exploration and evaluation programs in North America, Latin America, Africa and Asia. The Punt Hill farm-in agreement represents Antofagasta’s first investment within Australia.

Under the Agreement, Antofagasta can earn a 51% interest in the Punt Hill project by expending US$4 million over 4 years. Once Antofagasta has obtained this 51% interest, Monax has the ability to remain at 49% by co-funding exploration or development costs, or can elect to have its interest diluted. Antofagasta can earn a further 19% equity in the project by expending a further US$5 million on exploration and development of the project tenements.  If a development decision is made, Antofagasta will pay Monax a success fee of $US 10 million. The agreement commits Antofagasta to spend no less than US$1.5 million on the Punt Hill project within the first two years, thus ensuring that ongoing exploration activity will take place at the project.

Exploration under the AMSA Agreement commenced with a major gravity survey comprising over 8000 new stations, taking the total gravity station measurements to ~14,800 across the project area.  A diamond drilling program designed to test new targets across the project area is planned for late 2011.

Figure 1.  Location of Punt Hill project within  Iron-Oxide Cu-Au Province located on the eastern Gawler Craton, South Australia.

Figure 2.  Groundhog prospect – summary of drilling results

Figure 3. Representative skarn alteration and mineralisation in drill hole GHDD6.  GHDD6 – 159m @ 0.47% Cu, 0.12 g/t Au, 5.3 g/t Ag, 0.48% Zn & 0.12% Pb (from 846m)