The Sebastian Project is located 11km north, and directly on strike from the northern end of the Bendigo Goldfield. Previously the Sebastian Project comprised two joint ventures between CGT and other parties. In 2007 the licence holding was rationalized with CGT gaining 100% ownership of all tenements except EL3105 which is the subject of the ongoing Sebastian Joint Venture with Greater Bendigo Gold Mines Ltd. CGT holds the licence to EL3105 and a 75% interest in the Sebastian Joint Venture. 

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Regional goldfield Location and gold occurrences

Previous drilling at Sebastian by WMC in 1987, and Alexander Resources between 2004 and 2005, had identified the presence of the Frederick the Great and the Bruhns fault systems and associated anticline over a strike length of approximately 400m. Low levels of gold mineralisation were intersected within the majority of these previous drill holes, with visible gold present in one of the Alexander Resources holes, FTG003 and a grade of 0.6m at 31g/t Au reported in WMC hole OTBD41. This information along with previous shallow percussion drilling (also WMC), research of historical mining reports and recent soil sampling, prompted a follow-up diamond drilling program of eight drill holes across 2006.

A round of reverse circulation percussion and diamond drilling was carried out in mid-2007. Trenching performed earlier that year provided new geological information to base the drilling upon. Fifteen RC holes were drilled together with five diamond drill 'tails'. Further diamond drilling was completed at South Frederick the Great as a subsequent follow up campaign of drilling.

The drilling program identified:

• Near surface anomalism along Gannaway Rd, north of the Frederick the Great Mines.
• High grade gold in quartz at South Frederick the Great.
• Strong anomalism to the south of the historic Frederick the Great Mines.
• A potentially continuous western corridor of mineralization, parallel to the main Frederick the Great corridor.

The encouraging near surface anomalism along Gannaway Road, 1km north of the Frederick the Great Mines, confirmed the northern continuity of the FTG corridor. Having identified new anomalism, in addition to the existing near surface anomalism highlighted in previous exploration programs, further drilling to evaluate the near surface potential and to explore the deeper potential on the Bruhns structure is warranted.

Aircore drilling adjacent to Gannaway Road (2007)

The identification of a western corridor of gold anomalism in the south of the gold field was very promising. It is possible that there is a linear mineralised corridor extending north and south parallel to the main FTG corridor. The northern extension is supported by anomalism identified in previous aircore drilling along Gannaway Rd. This previously identified anomalism can be projected linearly to the south, and appears to correlate with that identified in SRC014. Follow-up drilling is required.

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Drill location map for the Sebastian Goldfield showing anomalies to be drill tested.

The high grade anomalism and associated visible Au and quartz reef development observed within FTG012 in close proximity to the historic Charlton's South Frederick the Great Mine was very encouraging. The presence of both near surface anomalism on the FTG fault and deeper high grade anomalism on the Bruhns structure, confirms that the southern extrapolation of the FTG corridor needs to be explored further. FTG012 was drilled as a follow-up to FTG005, drilled in 2006, in which high degrees of quartz veining were intersected at different depths.

Pleasing assay results from FTG012 relating to the visible gold intervals have returned 1.8m @ 25.8g/t Au from 243.4m. This reef quartz interval, associated with the Lower Bruhns structures, contains a maximum gold grade of 57.1g/t Au over a 70cm section but is also supported by 70cm with grades at 7.9g/t Au.

These assays continue to show the potential of the Bruhns structures to host gold bearing quartz reefs at typically variable grades. It has also extended, by an additional 250m, the strike length of structure assayed to contain high grades on Bruhns or Lower Bruhns, to a total of 610m.

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Cross section of diamond drillhole FTG012 (Northing 5945410 GDA94).

The strongly deformed wall rocks, laminated quartz with well developed pug zones with fine acicular arsenopyrite observed within SRCD017 was also very promising due to its close proximity to historical workings located on the direct southern extrapolation of the main FTG corridor.

The Gunns Road anomaly, 2km to the north of the Frederick the Great Mines, is an area of high priority.

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Regional scale long projection along the Frederick the Great (FTG)- Bruhns structural corridor. This linear NNW trending set of structures has now been drill tested and confirmed along a distance of 3.2 km. Of that length gold has been located in high grades to the north at Gunns Road (FTG011) and in lower concentrations associated with high arsenic percentages in the south (SRCD017).

Additional historical research of the mining at Frederick the Great and surrounding mines has shown that the highest grade mineralisation was in near vertical shoots with short strike lengths, not from the larger tonnages mined from within the lower west dipping fault lodes. The shoots repeated at predictable intervals. This has specific bearing when assessing the highest grade results found in drilling to date, of which those in holes FTG003a (1.0m @ 10.96g/t Au, 0.6m @ 4.77g/t Au), FTG010 (1.7m @ 5.99g/t Au including 0.5m @ 11.69g/t Au) and FTG012 (1.8m @ 25.8 g/t) are interpreted to be in quartz veining with a more vertical structural orientation.

During 2008 CGT have used new geophysical data available from Geoscience Victoria and other data sources to generate new geophysical images which are being used to refine the structural understanding of the project with context to defining advanced drill targets outside the historical mine workings. Subsequently CGT undertook a gravity survey to better define the geophysical response between the Sebastian Fault and Frederick the Great mineralisation.

CGT have also carried out petro-geophysical testing to determine if there is sufficient contrast in the physical properties of regional lithologies and mineralised rock types to warrant conducting an IP survey which would consequently be used as a drill targeting tool.

Property Purchase
A property of 136 acres containing the majority of old Frederick the Great mine workings came on the market and was purchased by the Joint Venture partners of EL 3105. This acquisition comprises a house, dam and other minor farm infrastructure along with mine shafts, past tailings dumps and historically recognised cyanide vats. Control of this land greatly assists access to the central portions of the old mines and resources, and also provides a base for logistical support of exploration activities at Sebastian.