Telfer Projects (Gold)

Ram Resources holds two exploration licenses E45/2726 and E45/2727 which are located within close proximity to Newcrest Limited’s Telfer Gold Mine which is located about 400 km east-southeast of Port Hedland and some 1300 km by air from Perth.

E45/2726 – Fallows Field

The Fallows Field tenement (E45/2727) is approximately 10km to the south of the Telfer gold mine and covers an area around the old Fallows Field gold mine. E45/2727 is subject to a 2006 option agreement with Newcrest Operations Limited (“NOL”) whereby NOL has a three-year option from 25 March 2011 to acquire the tenement for $500,000 plus a 1.5% NSR royalty.

During the option period, NOL is required to pay all outgoings on the licence and meet the minimum expenditure requirements.

E45/2727 – Dome Triangle

The Triangle Dome (E45/2726), about 27km to the east of the Telfer Gold Mine, operated by Newcrest Mining Limited.

Geological Setting

E45/2726 is underlain by the deformed Neo-proterozoic Era Lamil Group sedimentary rocks of the Punta Punta Formation and the Malu Formation (which includes the Telfer Member). During the Permian Period the area was covered by fluvio-glacial sediments of the Paterson Formation, which extends to the north into the Canning Basin . These Permian rocks have now been eroded, exposing Neo-proterozoic formations as low hills and ridges. The Neo-proterozoic rocks are poorly exposed in the tenement area. The Permian cover varies from 0m in the immediate Triangle Dome area, through to 75m depth in the east.

Historical Work

E45/2726, and the area surrounding it, has been previously explored by companies such as Carr Boyd Minerals, BHP and Newcrest since 1974, underlining the attraction of the area and the presence of anomalous gold in drilling. Previous exploration has been focused on the exposed outcrop at the Triangle Dome prospect since Permian cover up to 70 m thick, is interpreted to cover the rest of the tenement area.

Results of historical drilling around the dome structure are still considered most encouraging and clearly demonstrate the presence of a gold mineralising system. Better intersections include 2m @ 10.6 g/t (hole NTR1902, 10-12m), 4m @ 9.2 g/t (hole TRC012 92 – 96m) and 4m @ 4.6 g/t (hole TRC008 104 – 108m).

Past explorers considered these results inadequate to warrant further work, and interpreted the limited mineralisation as being the due to the absence of a key stratigraphic unit to host the gold. However, CSA have highlighted the importance of competency contrast as a critical control on mineralisation and postulated that rocks apart from the Telfer Member may host contrasting brittle and ductile units (sandstones and shales respectively, for example) that can form a locus for gold mineralisation.

Furthermore, the proximity to Telfer itself and the presence of a granite intrusion to the northwest of the project area provides and important potential heat engine and/or source of mineralising fluids for a gold mineralising system.

Work undertaken by Ram

During the first half of 2011, Ram engaged geological consultants, CSA Global Pty Ltd (“CSA”) to consolidate and review the existing data for E45/2726 and prepare recommendations for further work .

A re-assessment of recorded structural data, such as bedding measurements, suggests that the Triangle Dome anticline, rather than being an upright tight fold, may actually be a moderately northeast verging (or leaning) anticline. This fold has shallow dipping strata (~ 30°) on its SW limb and steeper dips (~ 65 – 80°) on its NE limb. The axial surface of this anticline would then dip with approximately 60° towards the SW.

In a Telfer-style mineralisation scenario, mineralised reefs are centred along the fold hinge where dilation reaches its maximum. At the Triangle Dome, these Telfer-style reefs would then follow the plunge of the fold axis towards approximately 60° SE and NW – a direction that has not been well tested by drilling so far. Additionally stockwork zones (which play an important part at Telfer) have not been fully considered at the Triangle Dome area.

This interpretation has been developed using only the limited data present in existing maps. Structurally, the role of lower-order parasitic folds remains uncertain with respect to the geometry of the main anticline – these small folds may be confusing the interpretation. More detailed mapping and collection of structural readings in the field are needed to address the attitude of the Dome anticline and validate this exploration model.
Inter-layered composite sandstone and siltstone rock packages are perceived to provide the necessary rheological competency contrast for “saddle reef” type structures to form in the hinge zone of a fold structures.
Ram is of the opinion that insufficient work has been conducted to determine whether favorable rocks are present in the area. Further work is planned for late 2011, which will include ;

Re-log and collect structural data from the 3 core holes for the purpose of determining vein orientation and potential controls on mineralisation,
Re-interpret cross sections along the drill - lines to see where gold intercepts occur and determine whether mineralisation is associated with veins, or as disseminated mineralisation,
Geological mapping, focussing on structure, to identify the geometry of the regional fold and its vergence, the role of second order folding and general structural inventory of the area, and
Undertake and interpretation of available geophysical data