PANAMA
GOLD PROJECT

Ownership

Ron Gregory, Ken Morrison, and Russell Fulton (“Panama Partners”) – 100% TinOne Resources Inc. has Option Agreement to acquire 100% of the tenement. As of 7 June 2021, TinOne Resources Inc. has a 51% beneficial ownership percentage of the tenement.

Tenure

EL 4/2018
28 square kilometres
Licence granted 5 February 2019 for five years.

Target

Bulk mineable, fine disseminated gold in sandstone (Bessell Reward) or granodiorite (Potoroo, Panama) within the historic Lisle-Golconda Goldfield.
One of Everett’s Tunnels in the Panama Valley
Eastmans Adit – typical example of the early 20th Century mining at Bessell Reward (with evidence of more recent activity).
Panama Project geology and prospects

Geology

The underling geology at Panama is Ordovician-Silurian Mathinna Group sediments that have been intruded by Devonian granodiorite, the Lisle Granodiorite. The Mathinna Group sediments consist of psammitic siltstone-sandstone sequences with minor graphitic slate. The Mathinna Group has been deformed by the Devonian Tabberabberan Orogeny, forming northwest-southeast trending asymmetric folds with a moderately developed axial planar slatey cleavage.

The Lisle Granodiorite is deeply weathered and rarely outcrops. These intrusives are complex and heterogeneous with numerous inclusions of hornfelsed Mathinna Supergroup and dark diorite. Textures vary from equigranular, feldspar-biotite-quartz granodiorites to feldspar-hornblende-biotite porphyritic diorites. Intrusions occur as dykes and small cupolas or porphyritic apophyses.

Both the intrusions and the sediments are considered to be prospective for intrusion related gold systems (IRGS), sediment hosted disseminated gold and mesothermal gold deposits.

Granodiorite-hosted gold mineralisation

The primary target in this prospect is a granodiorite intrusion at the south-western end of Panama Valley Numerous historic alluvial workings are recorded above the weathered intrusion and prospector diggings occur in the Mathinna Supergroup rocks in the contact aureole, but the granodiorite intrusion has never been drilled or subjected to any modern exploration.

The prospectivity of this target is based on its similarities, in terms of magnetic signature and structural/geomorphic setting, to a smaller granodiorite intrusion, known as the Potoroo prospect, further down slope in the north-east of Panama Valley. Modern exploration at Potoroo by previous companies demonstrated a small but coherent body of low grade, near surface gold mineralisation disseminated through the sericite-clay-sulphide altered granodiorite host rock in a structurally focussed zone corresponding to a magnetic high. The magnetic anomaly source rocks are enriched in accessory pyrrhotite rather than magnetite and the mineralisation at Potoroo correlates with the modelled source of the anomaly. The gold occurs partly as free electrum and partly as fine grained inclusions in arsenopyrite and high arsenic pyrite.

Sediment-hosted gold mineralisation

Data supporting the sandstone-hosted, near surface gold model proposed for Bessell Reward is derived from compiling and interpreting a combination of; Tasmanian Geological Survey mapping and aeromagnetics, a track and ridgetop soil survey from previous company exploration, reported sampling results from sandstone beds exposed by prospectors in the 1920s and rock chip samples taken by the current authors.

It is interpreted as a cross-cutting structural zone through a NW-SE striking sequence of folded Mathinna Supergroup meta turbidites. The mineralisation appears to occur in both sandstone-hosted bedding-parallel veinlets and fine fractures as well as disseminated within the sandstone interbeds in a dominantly siltstone sequence (Lone Star Siltstone). The zone of structural deformation containing the target sandstones corresponds to a topographic anomaly comprising a ridge striking normal to the background geology, and a discontinuity on aeromagnetic linear trends related to fold axis in the background geology. It is clear from the historic alluvial diggings either side of the ridge, and the ridge topsoil and rock chip results, that the sandstone ridge is a source of gold. The mineralisation also coincides with the margin of a magnetic low, suggesting the possibility of demagnetising alteration.

Panama-Potoroo plan view showing TinOne Resources Corp prospects, historical prospects, drilling and magnetics (RTP, 1VD).
Bessell Reward plan view showing TinOne Resources Corp rock chip result, historical prospects, historical mining leases and magnetics (RTP, 1VD).

Historic Exploration

Alluvial gold was discovered in the Golconda-Lisle area in 1872 and hard-rock mining followed in 1876. The main Lisle alluvial field was discovered by Charles Bessell in 1878, following the discovery of the Tobacco Creek Goldfield (Bessell Reward area) in 1877.

The most productive period was from 1878 to 1909 and the area officially produced 2.7 tonnes of gold by 1925, mostly from the Lisle Valley alluvials. The Chief Government Geologist estimated the production to 1909 to be 250,000 ounces. Minor alluvial mining continues to the present day.

Hard rock mining in the Golconda and Panama goldfields continued periodically until the 1920’s. Production records are poor, but head grades are generally reported to be in the 8¬15 g/t range with production mainly from small quartz veins hosted in granitoids and Mathinna Group sediments.

Modern exploration commenced in the 1970s and comprised of broad-scale stream sediment, soil, and rock chip sampling. An aeromagnetic survey was flown in 1983. Five open-hole percussion drill holes were completed on the Panama tenement area in 1984. CRA Exploration noted the presence of gold in sandstone at Bessell Reward prospect with a sample of “… bleached white sandstone, slightly pitted and micaceous, surrounded by secondary ferruginised/silicified brownish material which follows joints. Some thin quartz stringers to 1mm.” that returned an assay of 7.18 ppm gold.

A significant period of exploration took place in the 1990s to early 2000s with intensive soil sampling, rock chip sampling, trenching and both reverse circulation and diamond drilling. The Potoroo prospects was discovered during this phase of exploration. A total of 73 holes were drilled during this period.

In all, a total of 78 holes have been drilled within the tenement with an average depth of 73 metres. The maximum hole depth is 186.5 m and only 3 holes deeper than 150 metres have been drilled.

TinOne Resources Inc. Exploration

TinOne Resources Inc. has undertaken two surveys on the tenement. At Bessell Reward prospect a trial Gradient Array IP-Resistivity survey and a soil geochemical survey were conducted. No previous geophysics, other than aeromagnetics and radiometrics, has been conducted on the prospect and the similarity of mineralisation to the central Victorian style of sediment-hosted gold associated with disseminated sulphides observation of suggested to TinOne Resources Inc. that IP-Resistivity may be an applicable technique to explore for mineralisation below the level of oxidation.

The soil survey confirms coherent anomalies indicated by earlier work. The IP survey defines strong chargeability anomalies east that partially overlap geochemical anomalies. There is a significant difference in chargeability between the eastern and western parts of the survey area, delineated by a fault interpreted from the magnetics.

Bessell Reward plan view showing TinOne Resources Inc. rock chip results and gradient array IP chargeability.

Exploration Plans

TinOne Resources Inc. plans to execute systematic exploration utilising modern techniques. This is likely to include:

  • Additional IP/resistivity
  • Additional soil geochemistry
  • Reverse Circulation and diamond drilling beneath old workings
  • Reverse circulation and/or diamond drilling of soil geochemical anomalies
  • Reverse circulation and/or diamond drilling of IP/resistivity targets

Qualified Person

The scientific and technical information in this website has been prepared in accordance with the Canadian regulatory requirements set out in National Instrument 43-101 (Standards of Disclosure for Mineral Projects) and reviewed and approved by Dr Stuart Smith as a Qualified Person as defined by NI 43-101 (the “Qualified Person”). Dr Smith is a Technical Adviser to the company.

For additional information regarding TinOne’s Panama Project please refer to the Technical Report entitled “Panama Project” dated effective March 29, 2021, prepared by Tim Callaghan, available under TinOne’s profile on www.sedar.com.