Leonora

The gold mining lease covering the Leonora gold project in the Eastern Goldfields of Western Australia has been acquired by Chinese company Bligh Resources through it acquiring the majority shares in SR Mining Pty Ltd. The Leonora area is a well serviced gold mining region located 832 kilometres from Perth and 230 kilometres north of Kalgoorlie, that can be reached from Perth via the Great Eastern Highway.

The Leonora Gold Project Includes the Mt Davis and Diorite King Deposits
The Leonora Gold Project consists of two major gold prospecting areas, one at Mt Davis and the other at Diorite King. The SR Mining Pty Ltd lease covers 1,287 hectares at Mt Davis with a total of 10 contiguous prospecting licences and 49 square kilometres at the Diorite King Mining Centre. The tenements are located six kilometres from the Tarmoola gold mine that has produced more than three million ounces of gold, a factor that indicates the Leonora Gold Project's good prospects as the geological aspects of the two areas are strikingly similar. Both have gold mineralisation associated with pyritic quartz veins with high level grantic intrusions. Bligh Resources have collected more than 1,200 soil samples and completed geological mapping of the lease area highlighting the historical Diorite King workings.

Bligh Resources Major Project at Leonora is the Bundarra Project
The company's main gold mining project is the Bundarra deposit which is also located in the Leonora Region, 35 kilometres from the Leonora Gold Project at Mt Davis and Diorite King. It acquired 42.9 percent interest in the Bundarra project in December 2012 and has recently started a scoping study to prove up the feasibility before proceeding further.

The Bundarra tenements cover 17 square kilometres that include four deposits and six granted leases. Existing open pits on the lease include; Blue Bush, Wonder West, Great Western, Wonder North and Celtic. Bligh Resources plan to re-enter the Celtic open pit before beginning work on the other mines.

The largest deposit of the Bundarra Project is that of the Wonder North open pit that has a remaining gold resource of 172,600 ounces. The last time this pit was mined, with the West Pits, was by Sons of Gwalia between 2002 and 2003, when they produced 818,931 tonnes of ore that graded 2.21 grams of gold a tonne. A geological report indicates all properties are prospective for gold with the most prospective being the Great Western and Wonder North pits.

The Bundarra project at Leonora is situated 70 kilometres from the small township of Leonora which has a rich mining heritage. The area has an experienced mining workforce and mining equipment can be accessed at Kalgoorlie. There is a well established mining service industry in the area that would be capable of servicing any mining project that Bligh Resources may call on in the future. The company is currently carrying out discussions with Chinese ferroalloy smelter owners looking for a joint venture partner to begin work on a number of its projects.

Bligh Resources is listed on the Australian Securities Exchange (ASX) since December 2011. It currently holds 512 square kilometres of highly prospective gold and manganese tenements in the Northern Territory and Western Australia.
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