The Barlee Project covers over 400 square kilometres of highly prospective Greenstone terrain that remarkably has received little, systematic modern day exploration. It some respects the area can be considered to be a ‘forgotten greenstone belt’.

Beacon have purchased 80% of the rights for all commodities other than iron ore for EL77/1297, with the vendor, Duketon Consolidated Ltd having the option to contribute on a percentage basis or dilute to 10% free carried should a positive Bankable Feasibility Study be completed. Beacon holds 100% of all commodities in ELA77/1343 and 1392. The tenements are also considered prospective for calcrete-hosted uranium and nickel sulphide mineralisation.

The project is located within the Archaean Southern Cross Province, a multi-million ounce gold Province, some 200 kilometres north of the town of Southern Cross. The area hosts several large gold deposits which have been or are being considered for mining (see below). The company believes that the Barlee Project is highly prospective for structurally controlled, mesothermal gold mineralisation.

Sources:
Bulchina/Lord Nelson/Henry – Troy Resources  (www.troy.com.au),
Younami – Goldcrest Resources Ltd (www.goldcrestresources.com)
Mt Ida, Davyhurst – Monarch Gold Ltd (www.monarchgold.com.au)
Mt Dimer  - Tectonic Resources Ltd (www.tectonicres.com.au)\
Copperhead (1995, Schwebel) Southern Cross Grreenstone Belt –Geology & Mines


Since January 2007, the company has completed over 15,000m of Aircore drilling, testing for shallow gold mineralisation at several prospects over 3 kilometers of strike. Beacon’s drilling verified a new exploration model that assumes gold mineralisation is preferentially hosted in north-easterly trending structures (shear zones).  This model differs from assumptions made by previous explorers and suggests that the historical drilling was oblique to this trend. The geological model is shown below.


Interpretation of the drilling quickly led to the identification of two prospective north east trending structures, the Phil and Halleys East Shear Zones. Results from the company’s Aircore drilling along these structures have returned significant intercepts from a number of prospects including Halleys East, Phil, Faith, Halleys Channel and Buddy. Better gold results are shown below;

Halleys East Prospect
o 28m @ 4.1 g/t (inc. 8m @ 10.6 g/t)
o 32m @ 3.7 g/t (inc. 8m @ 7.8 g/t EOH)
o 12m @ 2.6 g/t , and 4m @ 13.3 g/t
 
Faith Prospect
o 10m @ 3.6 g/t (inc. 2m @ 10.5 g/t EOH)

Phil Prospect
o 24m @ 2.7 g/t (inc. 4m @ 12.4 g/t)
o 24m @ 1.0 g/t EOH 
o 12m @ 2.1 g/t
o 8m @ 5.9 g/t

Buddy Prospect
o 8m @ 3.5 g/t

Halleys Channel  Prospect
o 12m @ 1.5 g/t 

(Results at + 0.2 g/t Au, composite samples to maximum of 4m, EOH = end of hole)



Mineralisation (at +0.1g/t Au) can now be traced for over 1.2 kilometers along the Halleys East Shear Zone, which is open in several directions. Similarly, mineralisation associated with the Phil Shear Zone has been located in a number of discrete zones over 1.3 kilometers of strike.

Beacon intends to continue its aggressive exploration approach at Barlee, and will complete RC drilling at several prospects to determine their potential to host shallow gold resources. Coupled with this, regional exploration will also continue targeting further zones of gold mineralisation along known structures (ie: Phil, Halleys East) as well as initially testing other north easterly trending shear zones that have been identified within the Barlee Project.