Scotia Project (100% Nickel Rights), Western Australia

NICKEL EXPLORATION

The Scotia Nickel Project is located 65 kilometres north of Kalgoorlie in Western Australia, and covers an area of  approximately 238km² , including approximately 40 strike kilometres of the nickel sulphide bearing Scotia Ultramafic which hosts the historic Scotia Mine and the Saints Nickel Target, as well as several near-surface nickel geochemical anomalies.

Scotia Nickel Mine

The mineralisation at the Scotia Mine consisted predominantly of disseminated nickel sulphides with the production of some
1.4 million tonnes with an average grade of about 2.2% nickel by underground methods during the 1970's to a depth of about 360 metres. The mine ceased production in 1977 due to a major near-surface pillar collapse.

At the base of the mine, the deposit appears to be structurally terminated, prompting questions regarding the occurrence of extensions structurally displaced from the mined portion of the deposit. Limited, wide spaced historical drilling, down dip and
along strike to the south of the deposit, has not been successful
in discovering depth extensions. However, the majority of nickel sulphide deposits in the Eastern Goldfields comprise a series of disconnected lenses distributed over extensive down-plunge
lengths with much shorter strike extents. Breakaway is of the
view that if this pattern occurs at the Scotia Mine the historical
down-plunge holes may not represent an effective test for depth
extensions and further drilling is required  to test a broader range
of down-plunge options.

Saints Nickel Target

At the Saints, 15 kilometres north of the Scotia Mine, nickel sulphide mineralisation has been discovered on two trends comprising the Eastern Contact Trend and the Western Contact Trend, discovered by Breakaway in 2007. On the Eastern Trend previous exploration located two mineralised zones, termed St Patricks and St Andrews, 600 metres apart. Previous drilling to test these occurrences was limited to maximum depths of 300 metres and did not satisfactorily close off the occurrences to test for extensions away from the two zones.

The St Patricks Deposit, which was delineated by previous explorers, occurs in two parallel structurally controlled zones based on a 1% nickel cut-off grade, a Mineral Resource comprising 135,600 tonnes at 3.7% nickel for 5,000 tonnes of contained nickel, categorised as an Inferred Resource, was reported in accordance to the JORC Code guidelines. The resource estimate was generated by RSG Global (now a division of Coffey Mining Pty Ltd) for the St Patricks Deposit in 2006.

Mineralisation at the St Andrews Deposit has been only sparsely drilled by previous explorers, and occurs within several parallel zones along strike from St Patricks.

The soil covered Western Contact Trend was discovered by Breakaway in 2007 following up anomalous aircore geochemistry. Subsequent diamond drilling located structurally - controlled nickel sulphide mineralisation in a large number of holes with grades up to 6.29%.

Regionally, the Western Contact remains highly prospective with the drilled area representing only one of several nickel sulphide occurrences present along its strike.  Notably moderate to high grade nickel intersections including 2 metres @ 3.32% Ni from 67 metres and 1 metre @4.76% Ni from 87 metres in 07BSGD0015 and 0.55 metres @ 6.29% Ni from 98.9 metres in 07BSGD0030 are present 400 metres north along strike from the 2009 drilling and require further testing.

These intersections reinforce the prospectivity of both the Western Contact and the Saints Nickel Target as a whole. 

GOLD EXPLORATION (Aphrodite Gold Earning 80% of Gold Rights) 

Scotia Gold Rights Farm-in and Joint Venture

In June 2011, Breakaway signed a Farm-in and Joint Venture Heads of Agreement with ASX-listed Aphrodite Gold Limited (ASX: AQQ), whereby Aphrodite can earn up to an 80% interest in the Scotia Project’s Gold Rights by spending $1.5M over a period of up to 4 years.

The Scotia Project is highly prospective for gold as it lies within the Bardoc Shear Zone, a significant regional structure which hosts numerous gold deposits including Aphrodite Gold’s +1Moz Aphrodite Deposit (5 kilometres to the west) and the +5Moz Paddington Deposits (approximately 30 kilometres to the south).

Additionally, a number of known gold prospects including the Chameleon prospect, and historical drill intersections lie within the Project’s boundaries.

At Chameleon, gold mineralisation occurs within a steeply dipping, north plunging shoot that has been previously drilled on nominal 50 metre centres, over 300 metres strike and to a depth of 200 metres.

Mineralisation remains open both at depth and along strike with numerous significant intersections returned to date including 29m @ 3.40g/t Au from 124 metres in GG382, 22m @ 5.43g/t Au from 150 metres in GG390, and 8m @ 3.39g/t Au from 202 metres in GG401.

In July 2011, Aphrodite Gold received significant gold results from its maiden Reverse Circulation drilling program (15 holes – 3,170 metres) at Chameleon, with better intercepts including 12m @ 10.99g/t gold from 66 metres in CHR001, 11m @ 2.05g/t gold from 129 metres in CHR002, and 8m @ 1.51g/t gold from 227 metres in CHR009.

As announced on 23 December 2011, Aphrodite Gold has now earned its initial 51% interest in the Scotia Gold Rights, and is now earning an additional 29% interest (for a total 80% joint venture interest) by spending a further $1.1 million on gold exploration within a period of up to three (3) years.