The Alexander Gold Project, of approximately 2,669 ha, lies approximately 20 km south of Oceana Gold's Globe Progress mine, which is currently producing between approximately 50,000 - 75,000 ounces/au per yer
Mineralization consists of high grade gold in veins, with an auriferous halo of arsenopyrite ore. CRA Mining, in a filing with Crown Minerals NZ estimated there was a resource potential of 4 million tons grading 5+ grams/tonne for approximately 643,000 ounces. The Company notes that there has been insufficient work performed by a qualified person to confirm this potential, it is not NI-43-101 compliant and should not be relied upon.
An up to 3,000 meter diamond drill program is underway.
The Company completed an initial geological assessment of the Alexander Gold Project the second week of December 2009 with over 200 assays received from trench samples . Significant gold assays, as reported in the Company's news release KEX2010-02, inlude Trench F, 3.2 m at 24.6 g/t Au including 1.3 m at 40.38 g/t Au. The Company has completed an IP Survey that will assist in determining drill locations for a limited drill program on the property during the second phase program, expected to conclude late 2010.
The closest mines to the property, both historic and operating, are the Blackwater which produced approximately 750,000 ounces at a reported grade of 11 gpt prior to closing after a shaft collapse in 1952, and the Globe Progress, which reportedly produced approximately 640,000 ounces from underground workings. Oceana gold reopened the Globe Progress mine in 2007 as an open pit mine with a reported resource of 1,000,000 ounces. Both these mines are located on claims immediately to the north of the Alexander River property.
Historic reports indicate that approximately 10 million ounces of placer gold and 2 million ounces of lode gold have been recovered from the Reefton mining camp.