A systematic, detailed airborne geophysical programme
carried out in the Taupo Volcanic Region (TVR) in 2005 by Glass Earth NZ Ltd
culminated in the identification of 21 epithermal gold targets. In this paper we
present the follow up ground-truthing results from the first target drilled,
Tahunaatara (TAH).

The Tahunaatara target was identified by means of a
multi-disciplinary integrated approach (data intervention) that defined and
ranked the target as being highly prospective for epithermal gold
mineralisation. A follow-up ground resistivity survey over the target area
revealed the presence of a resistor buried beneath an extensive cover of
recent volcaniclastic material. Geochemical soil sampling carried out in
conjunction with the resistivity survey yielded anomalous gold
values.

The host unit at TAH consists primarily of flow banded
rhyolitic lavas, volcaniclastic deposits and tuffs of the Ohakuri Ignimbrite
with small outcrops of silicified bedded breccias forming local topographic
highs. Results from the first orientation drill hole show wide zones of intense
silicification, clay alteration and mineralisation. Sulphide mineralisation is
disseminated throughout the core in association with hydrothermal replacement
and also occurs in association with quartz veins and infill in fractures
(sulphide-only veinlets as opposed to quartz + sulphide veinlets). Textural
evidence from drill core indicates that hydrothermal fluid flow was multi-staged
with potential for multi-stage gold, and other elements. The presence of
polymictic hydrothermal eruptive breccias indicates a hydrothermal vent
system.

Alteration varies from argillic to silicic, with pervasive
adularia and vuggy silicification also present.
Chlorite is minor and associated with quartz,
illitic clay and adularia. Assay results currently available confirm the
presence of anomalous gold values in association with zones of vuggy silica
deposition and intense silicification.