Ravensthorpe Project

Athena commenced exploration at Ravensthorpe in 2005 where the target is nickel sulphide or precious metals (gold and platinum group metals), but there is also potential for base metal mineralisation on the Company’s tenements.  As the tenements were still at the application stage exploration was restricted to analysis of remote sensing data (airborne magnetic and radiometric data, and satellite imagery) and low-impact reconnaissance activities; such as rock chip sampling, geochemistry and petrology. Several of the tenements have since been granted and are available, subject to obtaining prerequisite statutory approvals, for more aggressive exploration including drilling.

The area of the Company’s tenements is shown on published geological maps as being almost entirely granite.  In mid 2005 the Geological Survey Western Australia released new 400 metre line spaced airborne magnetic and radiometric data for the Ravensthorpe 1:250,000 map sheet area. Analysis of the new aeromagnetic data in conjunction with high quality satellite images has resulted in the Company revising the accepted geology for the area and resulted in the recognition of elongate patterns not easily discernable in earlier Landsat or even on some of the earlier magnetic images.  Reconnaissance ground checking has confirmed that these zones are in fact an anastomising ultramafic and mafic dyke swarm and that some of the dykes are mineralised with disseminated sulphide visible in hand specimens.

A number of magnetic anomalies that are considered targets for nickel exploration have been identified using the new data.  The limited ground checking of these anomalies completed to date has been encouraging. Preliminary mapping and interpretation of the new magnetic and satellite images also indicates that the ultramafic body that hosts the UCABS disseminated nickel sulphide prospect extends east and west into the surrounding tenement held by Athena,

Ironstone with boxwork textures interpreted to be a highly weathered nickel-sulphide gossan is associated magnetic serpentinite and coarse textured cumulate at the West Point prospect. This outcrop, which is 300 metres x 50 metres, is the most promising nickel target found so far.  Assays of rock chip samples from the gossan returned maximum values of 0.31% nickel, 400ppm copper, 0.08% cobalt, 43ppb platinum, 15ppb gold, and 0.8% chromium. The gossan is also anomalous in cerium, thorium, and uranium and rare earth elements.

The Oldfield prospect, located about 20 kilometres northwest of West Point, is at the western termination of a strong aeromagnetic anomaly 8 kilometres long with north-easterly trend. A rock chip sample of relatively fresh ultramafic collected by Athena’s geologists from the Oldfield prospect assayed 1840ppm nickel, 100ppm cobalt and 2050ppm chromium, confirming the prospectivity of this magnetic anomaly.

Disseminated sulphides have also been found at the Norite Hill prospect by the Company’s geologists in outcropping gabbro and norite.  Samples of fresh rock chip samples from this locality were anomalous in copper with assays in the range of 300-400ppm.

At the High Cliff prospect on the Oldfield River rock chip samples from a strongly sulphidic quartz vein returned anomalous copper and gold values up to 0.43% copper and 55ppb gold. A north-south shear zone is associated with schistose mafic rocks and brecciated and quartz-veined granite at this location. Iron-rich outcrops that might also be gossans after massive pyrite occur on the flanks of a prominent breakaway.

In 1997 previous explorers obtained assays up to 29ppb gold from BLEG analysis of laterite and calcrete samples collected from horizons below sandy soils on farmland at the South Point prospect. In the following year a low level gold and base metal anomaly was located in calcrete and laterite along the Jerdacuttup Fault zone. Approximately 330 samples were collected and despite the broad 3 kilometres by 500 metre sample spacing, a number of coherent, low-level gold, copper, lead and zinc anomalies were identified.  The geochemical anomaly is broadly coincident with a magnetic anomaly and the zone is structurally aligned with the Trilogy polymetallic deposit.

Athena has agreements to acquire two tenements that, while peripheral to Athena’s main project area at Ravensthorpe, fit well with the Companies exploration strategy. The Rav South prospect is a strong east-west oriented aeromagnetic anomaly measuring about 4km by 800 metres. Rav South is considered prospective for komatiite hosted deposits of the type mined by Tectonic Resources at Rav 8. The nickel within these deposits forms at the base of specific volcanic flow rocks, and the identification of these positions is critical to exploration success.

The Forrestania South prospect is a subtle narrow, east-west oriented magnetic anomaly about 12 km in length. The anomaly is interpreted to be a dyke or a remnant of the Forrestania greenstone belt. The prospect is about 15 km southwest of the Hatters Hill gold workings and is considered prospective for gold and/or nickel mineralisation.

Targeting and Exploration

• The marked contrast between the mafic dyke and granite host rock will aid and assist exploration for nickel sulphides,

• High-resolution aeromagnetic and radiometrics followed-up with geochemistry, ground EM and IP surveys will be the principle exploration tools.

• The strongest geophysical and geochemical anomalies will be drill tested.