Pacrim Energy LTD - Growth Through Discovery

Redcliffe Project

LOCATION: LEONORA, WESTERN AUSTRALIA
(PACRIM 100%)

The Project covers approximately 65 kilometres of strike length of the Mertondale Shear Zone along with parallel and associated structures. An estimated 400,000 ounces of gold has been produced from the Mertondale Shear Zone from historic mines and pits that operated in the 1980s and 1990s.

These include the shallow Nambi and Redcliffe pits that produced in excess of 90,000 ounces from within the Pacrim project area.

The Company’s Redcliffe Gold Project exploration led to the initial resource estimate of 151,000 ounces of gold, (consisting of an Indicated Resource of 385,000 tonnes @ 3.42g/t gold and an Inferred Resource of 1,678,000 tonnes @ 2.0g/t), with the Board confident of increasing the figure through further exploration.

Building on a very active exploration phase in 2008 Pacrim Energy Limited has recommenced field exploration since years-end.

Pacrim’s focus continues to seek further gold discoveries and to add to gold resources at the Redcliffe Gold Project. This will include the upgrading of the Golden Terrace South gold resource, further RC drilling, and advancement of planning for development of the most readily accessible and potentially economic gold mineralisation.

Redcliffe Regional Geology Redcliffe Regional Geology

  • Redcliffe Gold Project is the Company’s operational focus.
  • Located near Leonora, 230km north of Kalgoorlie; the heart of Western Australia’s goldfields
  • The region has numerous active mining operations with existing infrastructure
  • Leonora district - prolific multi-million ounce gold deposits.
  • Situated in an important regional structural setting; the Mertondale Shear Zone.

Redcliffe Tenement Area Redcliffe Tenement Area

  • Pacrim’s tenements include 65 to 70km strike length of the Mertondale Shear Zone and associated structures.
  • Drilling at Nambi Pit shows strong continuity of gold lodes
  • Redcliffe Pit / West Lode RC Drilling outlines further gold mineralisation
  • The Company has discovered high grade gold at Golden Terrace South (GTS)

727 PROSPECT

727 ProspectThe recently identified 727 prospect is considered to have the capacity to add to the existing resource base with relatively shallow mineralisation.
During the March 2009 Quarter, an RC drilling programme at the 727 prospect was designed and carried out to follow up earlier RAB drilling intercept of 10 metres @ 4.92g/t gold. Composite samples from the drilling reported gave intercepts including 20 metres @ 3.08g/t gold.
Assaying of single metre splits has returned the best intercept of 10 metres 5.7g/t gold from only 2 metres deep. Individual metre assays within the intercept were up to 12.3g/t gold.
R drilling to date has indicated the presence of substantial intervals of gold mineralisation associated with gold n soil anomalism lying to the east of the main Mertondale Shear Zone. Additional drilling is required to thoroughly test the gold mineralisation to determine orientation, geometry and strike continuity. The occurrence of such shallow gold intercepts is regarded as extremely beneficial in seeking to delineate resources amenable to open pit exploration.

727 Prospect

727 Prospect – March 2009 RC Drilling – 1m Splits
DHID East North Azimuth/Dip From To Intercept g/t Gold
GTRC146 359850 6834700 270/-60 2 12 10m @ 5.07
GTRC146       9 10 inc 1m @ 12.30
GTRC146       14 17 3m @ 3.72
GTRC147 359860 6834700 270/-60 9 10 1m @ 1.37
GTRC147       15 17 2m @ 8.38
GTRC148 359850 6834720 270/-60 38 39 1m @ 1.02
GTRC149 359860 6834720 270/-60 42 48 6m @ 3.64
GTRC149       53 54 1m @ 1.74

RAB drilling & magnetics RAB drilling & magnetics

  • Wide spaced RAB / Aircore drilling by Pacrim
  • Many intercepts up to 10m @ 4.92g/t
  • Extensive infill required

GOLDEN TERRACE SOUTH

The initial resource for Golden Terrace South calculated in mid 2008, was 16,000 tonnes @ 3.3g/t gold, for 44,000 ounces (Indicated and Inferred).This is based entirely on Pacrim drilling since discovery where no past mining has been carried out. Subsequent RC drilling has outlined a mineralised zone that continues at depth and to the south and remains open in those directions.

Pacrim Energy Ltd completed an RC programme in the March 2009 Quarter consisting of several holes aimed at testing the southern extension and a trial re-entry of an earlier RC hole where a previous contractor failed to attain the required depth. Drilling undertaken outlined further significant mineralisation including 7 metres @ 3.70g/t and 4 metres @ 3.58gt gold. Plus 10 gramme x metre intercepts shown emboldened on the following table.

Golden Terrace South – March 2009 RC Drilling – 1m Splits
DHID East(GDA) North(GDA) Azimuth/Dip From To Intercept g/t gold
GTRC153 357540 6838220 270/-60 43 44 1m @ 2.86
GTRC153       58 65 7m @ 3.70
GTRC153       76 79 3m @ 3.75
GTRC153       104 106 2m @ 2.58
GTRC154 357560 6838220 270/-60 84 87 3m @ 1.62
GTRC155 357550 6838180 270/-60 26 29 3m @ 4.16
GTRC155       51 53 2m @ 6.78
GTRC156 357540 6838120 270/-60 39 40 1m @ 1.13
GTRC157 357560 6838120 270/-60 60 62 2m @ 5.63
GTRC157       64 68 4m @ 3.58
GTRC051 357532 6838439 270/-60 83 84 1m @ 2.01
GTRC051       89 92 3m @ 2.83 (EOH)

The southern continuations of the gold mineralisation and deeper drilling have the potential to considerably expand upon the initial resource estimate.

RC drilling program
Subsequent to the data utilised for resource estimation, Pacrim Energy has completed additional RC drilling at the Golden Terrace South and Barry Prospects.

The drilling at Golden Terrace South was successful in extending the mineralised zone to the south to approximately 150 metres beyond the previously known mineralised zone (GTRC89-97). Results included 6 metres @ 3.15g/t, 7 metres @ 2.74g/t, 3 metres @ 4.60g/t, 3 metres @ 9.48g/t, and 4 metres @ 5.09g/t gold. Deeper drilling under the resource model also provided further encouragement with intercepts including 11 metres @ 3.13g/t and 10 metres @ 2.00g/t gold.

In addition to this work, further infill RC drilling has been carried out with better intercepts including 19 metres @ 5.57g/t, 8 metres @ 3.54g/t, 6 metres @ 4.57g/t and 3 metres @ 12.67g/t gold.

A re-interpretation of the initial resource estimate shell outlines has been in initiated and preliminary metallurgical test work has shown excellent characteristics with gold recoveries ranging from 90 to 100% from composite samples above the transition zone. Detailed geological mapping and extensions to the ground magnetic survey initiated early in 2008 were completed in December 2008.

RC Drilling Results - Golden Terrace South - June Quarter 2008
Hole ID East(GDA) North(GDA) Azimuth/Dip From To g/t Au
GTRC090 357560 6838100 270/-60 56 59 3m @ 5.87
GTRC090       58 59 inc 1m @ 14.95
GTRC090       73 77 4m @ 2.82
GTRC090       79 87 8m @ 2.05
GTRC092 357560 6838140 270/-60 66 69 3m @ 2.36
GTRC094 357550 6838160 270/-60 47 53 6m @ 3.15
GTRC094       61 63 2m @ 5.63
GTRC094       72 73 1m @ 5.30
GTRC095 357540 6838180 270/-60 34 35 1m @ 7.17
GTRC096 357560 6838180 270/-60 86 93 7m @ 2.74
GTRC096       97 100 3m @ 4.60 (EOH)
GTRC097 357550 6838200 270/-60 46 48 2m @ 2.19
GTRC097       54 57 3m @ 9.48
GTRC097       56 57 inc 1m @ 22.10
GTRC099 357520 6838220 270/-60 53 54 1m @ 5.16
GTRC100 357490 6838300 270/-60 51 52 1m @ 8.18
GTRC100       59 60 1m @ 3.28
GTRC101 357500 6838320 270/-60 69 72 3m @ 1.88
GTRC102 357500 6838340 270/-60 63 66 3m @ 1.53
GTRC125 357540 6838340 270/-60 85 90 5m @ 4.29
GTRC125       109 117 8m @ 3.15
GTRC126 357560 6838340 270/-60 88 90 2m @ 2.27
GTRC126       97 100 3m @ 1.23
GTRC126       102 112 11m @ 3.13
GTRC128 357540 6838460 270/-60 85 91 6m @ 2.34
GTRC130 357560 6838420 270/-60 88 92 4m @ 1.68
GTRC130       134 142 8m @ 3.12
GTRC131 357560 6838360 270/-60 92 94 2m @ 2.60
GTRC131       99 109 10m @ 2.00
GTRC131       128 132 4m @ 2.44
GTRC131       142 145 3m @ 1.44
GTRC131       151 154 3m @ 1.19
GTRC131       164 166 2m @ 1.65
GTRC132 357550 6838320 270/-60 96 99 3m @ 2.53
GTRC132       104 111 7m @ 2.15
GTRC133 357550 6838240 270/-60 67 70 3m @ 3.56
GTRC133       72 74 2m @ 8.04
GTRC133       77 82 5m @ 3.31
GTRC133       98 102 4m @ 5.09

Golden Terrace South Collar Plan Golden Terrace South Collar Plan

  • Over 250m strike of continuous gold mineralisation
  • Many plus 20 gramme.metre gold intercepts including: 24m @ 12.0g/t, 9m @ 15.1g/t, 17m @ 5.4g/t and 34m @ 3.86g/t
  • Recent drilling extends depth and strike 100m further south

Golden Terrace South Cross Section 280mN Golden Terrace South Cross Section 280mN

  • Strong gold zones
  • Relatively shallow mineralisation (<20 metres from surface) 9m @ 15.0g/t
  • Wide supergene zones (up to 60 metres) 24m @ 12.0g/t
  • Depth potential verified by intersection of primary gold mineralisation including: 23m @ 4.23g/t and 25m @ 3.97g/t
  • Open to south and at depth

Golden Terrace South Cross Section 280mN Golden Terrace South Long Section

GOLDEN TERRACE NORTH

Golden Terrace North Collar Plan Golden Terrace North Collar Plan

  • First zone subjected to Pacrim close spaced drilling and detailed ground magnetics
  • Structural controls identified
  • Exploration model employed to seek further zones of gold deposition and enrichment

NAMBI AREA PROSPECTS

The Nambi deposit is a robust silica/sulphide lode system that displays excellent continuity. The deposit is a series of north-south striking sub-vertical lodes that extend to a depth of 200 metres, open to the south and at depth. The estimate for the Nambi deposit reported 559,000 tonnes @ 2.9g/t gold, with 52,000 contained ounces (Indicated & Inferred).

Confirmation of the pit extents through further surveying may permit these resources to be increased in future estimates.

Location & Geology Plan Location & Geology Plan

  • Detailed mapping carried out over Nambi area
  • 90,000 ounces produced from several open pits
  • RC & diamond drilling of many targets carried out and to continue

REDCLIFFE PIT/WEST LODE

Pacrim’s previous RC drilling confirmed the existence of substantial gold mineralisation at the Redcliffe Pit prospect with the better intercepts being 8m @ 4.09g/t, 6m @ 4.46g/t, and 4m @ 3.65g/t gold from above the base of oxidation. Intercepts of 4m @ 3.10g/t and 5m @ 2.05g/t gold were returned from fresh rock with associated traces of fresh sulphides. The mineralisation lies beneath, and along strike from the former shallow open pit and occurs in both mafic and felsic lithologies with silica/sericite/biotite alteration over a strike length in excess of 300 metres.

Results from further RC drilling at West Lode and Redcliffe Pit were compiled during the March 2008 quarter. The best result from the drilling at West Lode was 17m @ 2.84g/t gold. A gold bearing quartz zone south of the Redcliffe Pit returned results of 3m @ 10.44g/t and 2m @ 9.07g/t. This new zone is open in all directions.

Plan showing mineralised envelopes & RC drill results REDCLIFFE PIT

  • Previous open pit in oxide zone
  • Multiple gold lodes
  • PRE RC intercepts: 8m @ 4.09g/t, 6m @ 4.46g/t, 4m @ 5.16g/t gold
  • Initial PRE resource 31,000oz

WEST LODE

  • Previous shallow pits – average grade of 3.2g/t gold
  • Multiple gold lodes
  • PRE RC intercepts: 17m @ 2.84g/t, 3m @ 13.57g/t gold
  • Initial PRE resource 15,000oz

NAMBI SOUTH PIT

RC drilling is planned at the Nambi South Pit, approximately 400 metres along strike from the main Nambi Pit.

A detailed programme of rock chip channel sampling has revealed numerous highly mineralised gold zones assaying up to 34.2 g/t gold.

The Nambi South Pit was excavated as a test pit during the time of operation of the main Nambi Pit. The target zone was only partially delineated by drilling and included an intercept of 30m @ 4.88g/t gold. Work carried out by Pacrim has demonstrated that a substantial portion of the mineralised zone remains in situ.

Twenty two samples taken from the walls of the bottom of the pit averaged 5.03 g/t gold. These included weighted averages of 7m @ 8.64g/t, 8m @ 3.61g/t, 5.5m @ 8.54g/t, 7.3m @ 5.00 g/t gold.

Geological Plan Geological Plan

  • Previous RC drilling 30m @ 5g/t
  • Pacrim channel sampling confirms in-situ mineralisation: 8.7m @ 4.52g/t, 7.6m @ 4.17g/t and 6.0m @ 5.90g/t
  • Cross structure controlled shoot
  • Further drilling planned
  • Expect extensive down plunge continuity

NAMBI / NAMBI PIT

The mineralised zone exposed in the Nambi Pit is sub-vertical and consists of a silica/pyrite/pyrrhotite/biotite lode with variable, amphibole, chlorite & sericite.

Pacrim’s first round of RC drilling in mid 2007 tested a 370 metre strike length below the pit floor to a depth of around 110 metres where results included, 10m @ 8.45g/t, 6m @ 6.66g/t, 5m @ 8.02g/t gold.

A second round of drilling, consisting of 9 deeper RC holes demonstrated continuation of the gold mineralised silica/sulphide lode to approximately 160 metres vertical depth (~100 metres below the pit floor).

A south plunging shoot of higher grade mineralisation is interpreted and has returned better intercepts of 7m @ 6.12g/t, 5m @ 5.63g/t, and 4m @ 4.11g/t gold.

Two additional mineralised zones have been discovered toward the northern end of the pit. The zones, referred to as E1 and E2, lie to the east of the main lode and have enhanced the gold potential of the Nambi Pit environs and they indicate the likely presence of further high grade shoots.

The second round of RC drilling intersected the E1 & E2 zones at shallow depths in several holes with results including 2m @ 12.70g/t, 3m @ 4.90g/t, and 2m @ 7.92g/t gold.

A third round of drilling is to test the zone at greater depth and to provide diamond core for preliminary metallurgical test work including rock density measurements.

Two diamond drill holes were designed to test the main zone at a greater depth and to provide diamond core for preliminary metallurgical test work. Two diamond tails were drilled for 331.4 metres carrying on from 100 metre deep RC pre-collars. Holes have been geologically logged, and density work has been completed. Both the main lode and the E1 lode were intercepted in the holes, indicating the ore body continues at depth to vertical depth of 200 metres.

RC Drilling Results - Barry Prospect - June Quarter 2008
Hole ID East(GDA) North(GDA) Azimuth/Dip From To g/t Au
NBRC084D 358705 6858183 270/-60 114.00 118.95 4.95m @ 2.14 - E1 Lode
NBRC084D       212.30 217.20 4.9m @ 4.60 - Main Zone
NBRC084D       215.30 216.30 inc 1m @ 14.55
NBRC085D 358690 6858133 270/-60 108.00 110.10 2.1m @ 3.01 - E1 Lode
NBRC085D       199.70 201.90 2.2m @ 2.78 - Main Zone

Nambi Drill hole collar plan

  • Strong silica/sulphide lode evident
  • Strike length in excess of 400m
  • Continuations confirmed by Pacrim with RC & diamond drilling
  • Additional lodes intersected (E1 Lode & E2 Lode)
  • Best intercepts include:10m @ 8.45g/t and 7m @ 6.12g/t

Nambi Main Lode Longitudinal Section Nambi Main Lode Longitudinal Section

  • Previous RC drilling to 50m averaging 4.86m @ 4.01g/t
  • Pacrim round 1 drilling to 100m deep av. 4.63m @ 4.58g/t
  • Pacrim round 2 drilling to 150m deep av. 5.14m @ 3.77g/t
  • Pacrim diamond drilling to 200m deep up to 4.9m @ 4.60g/t

Nambi Cross Section NBRC084D Nambi Cross Section NBRC084D

  • Continuity of lodes established by diamond drilling
  • Main zone mylonite returned intercept of: 4.9m @ 4.60g/t including: 1m @ 14.55g/t
  • Robust system open at depth

NAMBI NICKEL

Nambi Main Lode Longitudinal SectionPacrim’s exploration has identified a possible 20 kilometre strike length of an ultramafic rock sequence prospective for nickel. The zone lies within the Redcliffe Project tenements, to the east of, and approximately paralleling, the Mertondale Shear Zone. Announced in the December 2008 quarterly activity report, Pacrim’s initial RC drilling in late 2008 returned an impressive intercept of 98 metres @ 0.40%Ni, including 7 metres @ 1.05% nickel.

The RC drilling has confirmed the existence of a substantial zone of nickel mineralisation with a true width of approximately 75 metres delineated by concentrations of nickel in excess of 1000ppm. Within this zone, two higher grade zones of 2500ppm nickel occur.

Nambi Nickel RC Drilling -1m splits – Significant intercepts (+0.1% Ni)
Hole ID East North Azimuth/Dip From To Intercept
NBRC092 359860 6850170 270/-60 45 50 14m @ 0.17% Ni, 0.05% Cr, 259ppm Co
NBRC092       59 100 41m @ 0.22% Ni, 0.22% Cr, 113ppm Co
NBRC093 359820 6850170 270/-60 6 104 98m @ 0.40% Ni, 0.49% Cr, 198ppm Co
NBRC093       33 40 inc 7m @ 1.05% Ni, 0.83% Cr, 777ppm Co
NBRC094 359780 6850170 270/-60 4 31 27m @ 0.30% Ni, 0.60% Cr, 177ppm Co

Petrological work on drill chips was carried out to assist in geological interpretation of the nickel mineralisation. The work has confirmed the presence of sulphide mineralisation including chalcopyrite and nickel-cobalt sulphides (millerite).

Field investigations in the March Quarter have included reconnaissance mapping, collection of further samples for geochemical analysis and selected petrography to build detailed geological knowledge of the considerable strike length. Targets generated from this work will be prioritised and future proposed exploration programmes will be designed to include extensive geophysical surveying to seek disseminated and massive sulphide deposits.

IN ADDITION TO THE ADVANCED PROSPECTS WITH DEMONSTRATED RESOURCE POTENTIAL, THERE ARE NUMEROUS ATTRACTIVE EXPLORATION TARGETS WITHIN THE REDCLIFFE GOLD PROJECT.

 

EXPLORATON TARGETS

Gold in Drill Holes Gold in Drill Holes

  • Targets for further drilling as defined by previous drill hole chemistry
  • Much of the drilling was shallow, in depletion zone
  • Any gold anomalism is important and worthy of follow up

Gold in Soil Gold in Soil

  • Surface depletion and extensive cover ensures subtle gold anomalism is important in target definition
  • Many targets to be tested

Magnetic Image Magnetic Image

  • Interpretation shows Mertondale Shear Zone
  • Importance of cross structures evident (M3/4 & M5)
  • Further targets from geophysics combined with soil geochemistry and drill hole gold geochemistry

BARRY & KELLY

RC drilling at the Barry Prospect followed up historic anomalous drill intercepts of 4 metres @ 3.47g/t, 2 metres @ 1.49g/t and 6 metres @ 3.03g/t gold. Anomalous gold intercepts were returned from two interpreted sub-vertical parallel zones of mineralisation, striking north-south over 160 metres.

One of the zones is proximal to a graphitic shale unit, with the best intercept of 3 metres @ 3.90g/t gold. The geology of the Barry Prospect is similar to Pacrim’s Golden Terrace North and Golden Terrace South prospects and clearly warrants the drilling of further holes.

RC Drilling Results - Barry Prospect - June Quarter 2008
Hole ID East(GDA) North(GDA) Azimuth/Dip From To g/t Au
GTRC090 357560 6838100 270/-60 56 59 3m @ 5.87
GTRC107 357420 6841280 270/-60 51 52 1m @ 3.43
GTRC109 357460 6841280 270/-60 53 54 1m @ 8.67
GTRC115 357460 6841360 270/-60 80 81 1m @ 4.71
GTRC115       100 101 1m @ 3.32
GTRC118 357460 6841400 270/-60 97 100 3m @ 3.90
GTRC118       97 98 inc 1m @ 9.18
GTRC120 357440 6841440 270/-60 28 29 1m @ 5.03
GTRC120       46 49 3m @ 2.07

Barry & Kelly Barry & Kelly

  • Extensive gold anomalism outlined by previous drilling
  • Similar in character to GTS
  • Many targets show potential for additional resource definition

THE HUB

The Hub prospect consists of projected continuations of the Mertondale Shear Zone extending between the Nambi and Golden Terrace prospect groups within Pacrim’s tenements. Recent interpretation of magnetic data by Pacrim suggests favourable structural settings exist, with several disruptive cross-cutting features. RAB drilling has intersected projected trends of the same suite of lithologies that are host to gold mineralisation elsewhere along the Mertondale Shear Zone. Several plus 1g/t intercepts have been returned from drilling and require additional RAB drilling to expand the target gold definition.

The Hub Prospect RAB drilling – Results >0.1g/t gold
DHID East North Azimuth/Dip From To Intercept g/t Gold
HBRB001 359120 6850170 270/-60 50 51 1m @ 0.387
HBRB001       57 60 3m @ 0.762
HBRB005 359280 6850170 270/-60 29 31 2m @ 0.369
HBRB005       34 35 1m @ 0.255
HBRB006 359320 6850170 270/-60 34 35 1m @ 0.359
HBRB012 359240 6850070 270/-60 68 70 2m @ 0.143
HBRB023 359095 6850270 270/-60 86 88 2m @ 0.172
HBRB029 359120 6850370 270/-60 41 53 12m @ 0.398
HBRB029       43 44 inc 1m @ 1.453
HBRB029       48 49 inc 1m @ 1.157
HBRB033 359280 6850370 270/-60 51 53 2m @ 0.439
HBRB037 359440 6850165 270/-60 50 51 1m @ 0.122
HBRB038 359480 6850170 270/-60 25 26 1m @ 0.112