A1 gold project

The A1 gold mine is the second largest gold producer in the Mansfield, Woods Point area in central Victoria, 120 kilometres north east of Melbourne. The area had historically produced over 620,000 ounces up to 1992. The owner of the A1 gold mine, A1Consolidated Gold Limited, is currently developing an underground decline at the mine, at a rate of 100 metres a month, targeting the 1,400 stock work style mineralisation zone that contains a defined JORC Code Inferred Resource of 750,000 tonnes of gold bearing ore, grading at 5.5 grams of gold a tonne. It is expected that
this throughput will produce a total of 133,000 ounces of contained gold. The deposit is to be mined as a bulk mineable ore body.

A1 Gold Mine to Have ore Processed at LionGold's Ballarat Treatment Plant
A1 Consolidated Gold Limited has entered into an ore processing agreement with Asian mining company, LionGold Corporation, a company that enterered the gold mining business in 2011 when it changed its business name from 'The Think Environmental Company Limited (TTEC)' to LionGold. It has been agreed that LionGold would process a total of 450,000 tonnes of ore mined at the A1 gold mine, over a three year period, at the rate of 150,000 tonnes of gold bearing ore a year, at its Ballarat gold processing plant. This agreement will almost double the current amount of ore being processed at the Ballarat plant, that up until now has been processing between 150,000 and 200,000 tonnes a year mainly from the Ballarat underground mine.

LionGold to Process A1 ore for an Initial Three Years with a Further Three Year Option
The three year agreement between A1Consolidated Gold and LionGold is able to be extended for a further three years, up until December, 2019, if everything works out to the satisfaction of both parties. LionGold holds a 19.9 percent shareholding in A1 Consolidated Gold. A1 Consolidated Gold Limited was incorporated, in 2011, to facilitate its 100 percent acquisition of the A1 Consolidated Gold Project. Since that time it has acquired two more gold mining tenements in the Walhalla ñ Woods Point goldfield, one being the Ten Mile Goldfield and the other the Star of the West gold mine. The three tenements it now holds in North East Victoria cover an area of 45 square kilometres.

Surface Infrastructure Complete at A1 Mine Site
A1 Consolidated Gold has undertaken gold mining development of the A1 gold mine and to assist in its progression has employed a sub-contractor with experienced management along with a trained mining and technical staff. The surface infrastructure at the mine includes a heavy equipment workshop with its own oil and fuel storage, a drill core and sample preparation facility, an internet and mine radio communication system, connection to the state power grid, a first aid facility and an administration office.

A1 Consolidated Gold has commenced an underground diamond drilling program with the intention of identifying ongoing targets, that can be economically mined for future development, as the decline is being constructed. The company is confident the mine has upside exploration potential as well as exploring for extensions to known stock work mineralisation zones.
†