Update on BHA Project and Lithium Assets

RNS Number : 4137Y
Castillo Copper Limited
14 January 2022
 

 

14 January 2022

 

CASTILLO COPPER LIMITED
("Castillo" or the "Company")

 

Update on BHA Project and Lithium Assets

 

Battery metal drill-hole assays unlock BHA East Zone potential

 

Castillo Copper Limited (LSE and ASX: CCZ), a base metal explorer primarily focused on copper across Australia and Zambia, is pleased to announce it has received a fresh geological report on the BHA Project's East Zone which highlights significant exploration potential for cobalt-copper-zinc and possibly lithium mineralisation. A key insight was multiple drill-hole assays which delivered significant cobalt readings (refer to table A3-2). Consequently, with a risk-reward trade-off to the upside from a 100%-owned asset, the Board has decided to focus on developing the BHA Project and dropped plans to pursue the acquisition of the Litchfield and Picasso lithium assets.

 

Key Points

 

· A review on BHA's East Zone, acquired from Wyloo Metals1 in 2020, discovered numerous areas anomalous for cobalt-copper and zinc mineralisation delineated from surface / down-hole assays:

Notably, with assayed values ranging from >200ppm Co up to 9,500ppm Co across 108 drill-holes2 (proximal to the Himalaya Formation out-crop / sub-crop) work on modelling a JORC 2012 compliant mineral resource is now underway 

The region is well-known for its cobalt potential, as Cobalt Blue (ASX: COB) has JORC 2012 compliant ore reserves of 118Mt @ 687ppm Co for 81,100t contained metal3

 

· The Board is highly encouraged by the NSW government's new strategy, which targets building a viable downstream industry for processing critical minerals (including cobalt-copper-REE's) and establishing a global supply hub in the state's central west region4

 

· With the BHA East Zone's exploration potential materially enhanced, the Board has dropped plans to acquire additional lithium assets5

 

· Further, the Board will prioritise modelling a JORC 2012 compliant resource at the Big One Deposit and further developing the graphite-base metal discovery at the Arya Prospect 

 

Simon Paull, Managing Director of Castillo Copper, commented: "A recent geological review of the Broken Hill Alliance Project's East Zone uncovered 108 drill-holes yielding cobalt values >200ppm, with the highest being 9,500ppm. As a result, with the cobalt price now over US$70,000/t on the London Metal Exchange, work on modelling a JORC compliant mineral resource is now underway.

 

"Further, surface assays have enabled numerous zones anomalous for cobalt-copper and separately zinc to be delineated that are proximal to the Himalaya Formation out-crop and sub-crop. This is a timely discovery that significantly enhances the Project's exploration potential for battery metals, especially as it coincides with the NSW government launching its critical minerals and high-tech metals strategy. As such, the Board has decided to no longer pursue the acquisition of the Litchfield and Picasso lithium assets."

 

 

BHA PROJECT'S EAST ZONE - BATTERY METAL POTENTIAL

 

The review drilled down into all available information to determine the battery mineral potential of the BHA Project's East Zone. Pleasingly, analysing assayed surface and down-hole samples enabled numerous zones anomalous for cobalt-copper-zinc mineralisation to be delineated that are proximal with the Himalaya Formation outcrop or sub-crop under shallow (<10m) cover. Further, several of the anomalous zones are proximal to shear zones that trend NE/NNE across the tenure. 

 

More significantly, there are 108 drill-holes with at least one 1m or 2m assayed sample values >200ppm Co, with the highest up to 9,500ppm Co2. As there are sufficient data points, the geology team are now working on a suitable geological model and estimating a mineral resource to the standard of the JORC 2012 Code. 

 

Within the East Zone, the primary geological target is the Thackaringa style of cobalt mineralisation - this is constrained in or at the margin of the Himalayan Formation.

 

Across the region, there are known cobalt deposits, with ASX: COB's JORC 2012 compliant ore reserve (118Mt @ 687ppm Co for 81,100t contained metal3) arguably one of the largest.

 

Analysing data for copper in surface rock-chips demonstrates there are several prime anomalous zones, which like cobalt, appear to follow major shear boundaries and trends.

 

Lithium potential

 

Within the tenure are numerous zones of pegmatites which have been confirmed through field observations. Furthermore, there is scattered Sundowner Group outcropping which is known to host pegmatites. However, while the pegmatites are prospective for lithium mineralisation, comprehensive sampling work is required to delineate any anomalous areas.

 

To jump start the process, the Board is considering accessing samples from previous drilling - currently retained in the Geological Survey of NSW's core libraries - and re-assaying for lithium and rare earth elements.

 

NSW GOVERNMENT CRITICAL MINERALS STRATEGY

 

The Board strongly supports the NSW governments recently launched Critical Minerals and High-Tech Metals Strategy4. The core objective is to evolve NSW into a major global supplier and processor of critical minerals and high-tech metals. A key feature is developing significant processing capacity on shore, which is a significant move away from purely exporting raw materials, enabling a high value-adding manufacturing industry to rapidly evolve.

 

The government intends to take a "coordinated approach across the critical minerals supply chain, supporting the industry from early-stage exploration, through to end uses in manufacturing and recycling."

 

This is a major policy shift and could result in a critical minerals hub being established in the state's central west, which would have significant multiplier benefits for numerous stakeholders (including the BHA Project) along the supply chain. Most significantly, favourable government policy should enhance the central west of NSW as an attractive place for minerals investment.

 

OPTION AGREEMENT

 

The Board and companies, which hold the Litchfield and Picasso Lithium Projects, have mutually agreed to unwind the Option Agreement. As part of the break agreement terms, the A$50,000 deposit has been returned to CCZ5.

 

Next steps

 

In Queensland, the priority is as follows:

Assay results for the Arya Prospect; and

Progress geological modelling and then a JORC 2012 compliant mineral resource for the Big One Deposit.

 

In New South Wales, the priority is as follows:

Commence geological modelling of a JORC 2012 compliant mineral resource for the BHA Project's East Zone; and

Formulate surface geophysical surveys then develop inaugural RC drilling campaigns to test priority targets for cobalt-copper-zinc mineralisation

 

In Zambia, the priority is to complete the Induced Polarisation survey for the Mkushi Project and deliver the geophysicist consultant's review.  

 

In addition to this release, a PDF version with supplementary information and images can be found on the Company's website: https://castillocopper.com/investors/announcements/  

 

For further information, please contact:

Castillo Copper Limited  

+61 8 6558 0886  

Simon Paull (Australia), Managing Director  

Gerrard Hall (UK), Director  

 

 

 

SI Capital Limited  (Financial Adviser and Corporate Broker)  

+44 (0)1483 413500  

Nick Emerson  

 

 

 

Luther Pendragon  (Financial PR)   

+44 (0)20 7618 9100   

Harry Chathli, Alexis Gore

 

 

About Castillo Copper  

 

Castillo Copper Limited is an Australian-based explorer primarily focused on copper across Australia and Zambia. The group is embarking on a strategic transformation to morph into a mid-tier copper group underpinned by its core projects: 

 

· A large footprint in the Mt Isa copper-belt district, north-west Queensland, which delivers significant exploration upside through having several high-grade targets and a sizeable untested anomaly within its boundaries in a copper-rich region. 

· Four high-quality prospective assets across Zambia's copper-belt which is the second largest copper producer in Africa. 

· A large tenure footprint proximal to Broken Hill's world-class deposit that is prospective for zinc-silver-lead-copper-gold. 

· Cangai Copper Mine in northern New South Wales, which is one of Australia's highest grading historic copper mines. 

 

The group is listed on the LSE and ASX under the ticker "CCZ." 

 

References

 

1)  CCZ ASX Release - 30 September 2020

2)  Available at https://www.resourcesandgeoscience.nsw.gov.au/miners-and-explorers/geoscience-information/geological-survey-of-nsw

Leyh W.R., 1977 Progress Report on Farmcote Exploration Licenses 780 and 782, Farmcote Area, Broken Hill, NSW for the three months to 27 October 1978, North Broken Hill Limited for the NSW Geological Survey, (GS1977-078)

Leyh W.R., 1978 Progress Report on Exploration Licenses 1099 and 1100 for the six months to 27 October 1978, North Broken Hill Limited for the NSW Geological Survey, (GS1978-407)

Groves I. & Plimer I. 2017. Broken Hill Pb-Zn-Ag deposit. pp641-646In: Phillips N. ed. Australian Ore Deposits. Australasian Institute of Mining and Metallurgy Monograph 32, 879pp.

Fitzherbert J. A., 2018, A Mineral System Model for Broken Hill Type Pb-Zn-Ag mineralisation In New South Wales, Geological Survey of New South Wales, May 2018, GS 2018/0400

Ford A., Partington G., Peters K., Greenfield J., Blevin P., Downes P., and Fitzherbert J., 2018, Zone54-Curnamona Province and Delamerian

3)  COB ASX Release - 28 September 2021 (Annual Report 2021)

4)  NSW government Critical Minerals & High-Tech Metals Strategy (29 November 2021). Available at: https://www.nsw.gov.au/criticalminerals

5)  CCZ ASX Release - 29 September 2021

 

 

Competent Persons Statement

 

The information in this report that relates to Exploration Results for "BHA Project, East Zone" is based on information compiled or reviewed by Mr Mark Biggs.  Mr Biggs is a director of ROM Resources, a company which is a shareholder of Castillo Copper Limited.  ROM Resources provides ad hoc geological consultancy services to Castillo Copper Limited.  Mr Biggs is a member of the Australian Institute of Mining and Metallurgy (member #107188) and has sufficient experience of relevance to the styles of mineralisation and types of deposits under consideration, and to the activities undertaken, to qualify as a Competent Person as defined in the 2012 Edition of the Joint Ore Reserves Committee (JORC) Australasian Code for Reporting of Exploration Results, and Mineral Resources. Mr Biggs holds an AusIMM Online Course Certificate in 2012 JORC Code Reporting.  Mr Biggs also consents to the inclusion in this report of the matters based on information in the form and context in which it appears.

 

 

 

APPENDIX A: JORC CODE, 2012 EDITION - TABLE 1

(Criteria in this section apply to all succeeding sections.)

Criteria

JORC Code explanation

Commentary

Sampling techniques

· Nature and quality of sampling (e.g., cut channels, random chips, or specific specialised industry standard measurement tools appropriate to the minerals under investigation, such as down hole gamma sondes, or handheld XRF instruments, etc.). These examples should not be taken as limiting the broad meaning of sampling.

· Include reference to measures taken to ensure sample representivity and the appropriate calibration of any measurement tools or systems used.

· Aspects of the determination of mineralisation that are Material to the Public Report.

· In cases where 'industry standard' work has been done this would be relatively simple (e.g., 'reverse circulation drilling was used to obtain 1 m samples from which 3 kg was pulverised to produce a 30g charge for fire assay'). In other cases, more explanation may be required, such as where there is coarse gold that has inherent sampling problems. Unusual commodities or mineralisation types (eg submarine nodules) may warrant disclosure of detailed information.

· Sampling used in this analysis was all historical from the period 1964-2018.  This includes the 2016 and 2018 Squadron Resources soil sampling program. The data was a combination of the NSW Geological Survey surface sampling database and historical annual and relinquishment reports revisited and additional data extracted.

· Sampling was databased if it occurred inside the EL and in a 300m buffer surrounding the EL, to establish anomalous trend directions, if any existed. 

· Nearly 4,594 sample analyses from stream sediment, soil, and rock chip sources were collated and combined.  Of these approximately 680 sample did not reside in the government database and had to be encoded or georeferenced from the source reports (12 in total).

· Reference to these reports is given in the associated geology report (Biggs (2021a).

· Many of the sampling programs, especially from the 1990's did include reference samples and duplicate analyses and other forms of QA/QC checking.

· Sampling prior to 1988 generally has higher "below detection limits" and less or no QA/QC checks.

Drilling techniques

· Drill type (e.g. core, reverse circulation, open-hole hammer, rotary air blast, auger, Bangka, sonic, etc.) and details (e.g. core diameter, triple or standard tube, depth of diamond tails, face-sampling bit or other type, whether core is oriented and if so, by what method, etc.).

· Historical drilling consists of auger, rotary air blast, and diamond coring.  In and around the tenure are 1,255 drillholes, however it should be noted that the majority of these are <18m in depth, and the number of holes >12m number around 82, with 42 inside the tenure. Complete drilling analyses results are in the process of being compiled, and hence did not form part of this study.

Drill sample recovery

· Method of recording and assessing core and chip sample recoveries and results assessed.

· Measures taken to maximise sample recovery and ensure representative nature of the samples.

· Whether a relationship exists between sample recovery and grade and whether sample bias may have occurred due to preferential loss/gain of fine/coarse material.

· Not applicable in this study, no new holes completed.

Logging

· Whether core and chip samples have been geologically and geotechnically logged to a level of detail to support appropriate Mineral Resource estimation, mining studies and metallurgical studies.

· Whether logging is qualitative or quantitative in nature. Core (or costean, channel, etc) photography.

· The total length and percentage of the relevant intersections logged.

· The drilling that did occur was generally completed to modern-day standards. The preferred exploration strategy in the eighties and early nineties was to drill shallow auger holes to negate the influence of any Quaternary and Tertiary thin cover.

· No downhole geophysical logging took place.

Sub-sampling techniques and sample preparation

· If core, whether cut or sawn and whether quarter, half or all core taken.

· If non-core, whether riffled, tube sampled, rotary split, etc and whether sampled wet or dry.

· For all sample types, the nature, quality and appropriateness of the sample preparation technique.

· Quality control procedures adopted for all sub-sampling stages to maximise representivity of samples.

· Measures taken to ensure that the sampling is representative of the in-situ material collected, including for instance results for field duplicate/second-half sampling.

· Whether sample sizes are appropriate to the grain size of the material being sampled.

· Not applicable, as no new drilling was undertaken.

Quality of assay data and laboratory tests

· The nature, quality and appropriateness of the assaying and laboratory procedures used and whether the technique is considered partial or total.

· For geophysical tools, spectrometers, handheld XRF instruments, etc, the parameters used in determining the analysis including instrument make and model, reading times, calibrations factors applied and their derivation, etc.

· Nature of quality control procedures adopted (eg standards, blanks, duplicates, external laboratory checks) and whether acceptable levels of accuracy (i.e. lack of bias) and precision have been established.

· All of the analyses bar a few (<500 out 11,975) samples were laboratory tested in various NATA-registered laboratories throughout Australia.  Many of the earlier CRA Exploration stream sediment and soil samples were analysed by CRA internal laboratories.  North Broken Hill used their onsite laboratory on some campaigns.

Verification of sampling and assaying

· The verification of significant intersections by either independent or alternative company personnel.

· The use of twinned holes.

· Documentation of primary data, data entry procedures, data verification, data storage (physical and electronic) protocols.

· Discuss any adjustment to assay data.

· Over 830 samples have had their assays duplicated.

· None of the historical data has been adjusted.

Location of data points

· Accuracy and quality of surveys used to locate drill holes (collar and down-hole surveys), trenches, mine workings and other locations used in Mineral Resource estimation.

· Specification of the grid system used.

· Quality and adequacy of topographic control.

· In general, locational accuracy does vary, depending upon whether the samples were digitised off plans or had their coordinated tabulated.  Many samples were reported to AGD66 or AMG84 and have been converted to MGA94.Zone 54

· It is estimated that locational accuracy therefor varies between 2-50m

Data spacing and distribution

· Data spacing for reporting of Exploration Results.

· Whether the data spacing and distribution is sufficient to establish the degree of geological and grade continuity appropriate for the Mineral Resource and Ore Reserve estimation procedure(s) and classifications applied.

· Whether sample compositing has been applied.

· The average sample spacing across the tenure varies per element, and sample type, as listed in Table A1-1, below:

Table A1-1:  EL 8434 and EL 8435 Surface and Drillhole Sampling

Description

Number

Average Spacing

Comments

Stream Sediment

1,395

320

Includes BCL

Soil

1,049

240

 

Surface Rock Chip

2,150

185

 

Drilling

7,381

220

Includes shallow auger holes.  Five (5) holes in the tenures are held in GSNSW library.

Mineral Occurrences

98

420

Includes quarries and Industrial Minerals.

· No sample compositing has been applied.

· A listing of the historical drillholes that contain downhole samples and have been analysed for cobalt (>200ppm threshold) are given in Table A3-2 at the end of this section.

Orientation of data in relation to geological structure

· Whether the orientation of sampling achieves unbiased sampling of possible structures and the extent to which this is known, considering the deposit type.

· If the relationship between the drilling orientation and the orientation of key mineralised structures is considered to have introduced a sampling bias, this should be assessed and reported if material.

· The current database does not contain any sub-surface geological logging, which is being compiled.

· Geological mapping by various companies has reinforced that the strata dips variously between 40 and 83 degrees.

Sample security

· The measures taken to ensure sample security.

· The sample security measures, except for the Squadron Resources work programs is not known. Squadron took samples to their Broken Hill office and transported samples for analysis to ALS Broken Hill

Audits or reviews

· The results of any audits or reviews of sampling techniques and data.

· No audits or reviews have yet been undertaken.

 

 

 

TABLE A3-2 EL8434 & 8435 DRILLHOLES WITH SAMPLES >200PPM AS THE MAXIMUM VALUE

HOLEID

E_GDA94

N_GDA94

GSNSW_DRILL_ID

DRILL

RIN

PERIODEND

Ag_ppm

Au_ppm

Ce_ppm

Co_ppm

Cu_ppm

Ni_ppm

Pb_ppm

V_ppm

Zn_ppm

114

571243.1686

6451473.216

MIN_151594

RAB

RE0005534

20131203

1

0.02

182

390

432

60

10

234

59

125

571272.1723

6451389.216

MIN_151657

RAB

RE0005534

20131203

0.9

0

144

204

253

51

38

476

132

175

571322.1664

6451259.216

MIN_151712

RAB

RE0005534

20131203

0.8

0

176

208

643

92

59

347

278

208

571367.1666

6451389.216

MIN_151749

RAB

RE0005534

20131203

0.8

0.03

0

331

474

191

4

223

177

217

571372.1709

6451299.216

MIN_151759

RAB

RE0005534

20131203

1.3

0.02

214

455

625

123

11

301

148

260

571422.1703

6451279.216

MIN_151807

RAB

RE0005534

20131203

1.8

0.02

1076

2267

1307

247

32

500

167

262

571422.169

6451299.216

MIN_151809

RAB

RE0005534

20131203

1

0.02

182

317

416

81

7

206

128

305

571472.1654

6451249.216

MIN_151857

RAB

RE0005534

20131203

0.9

0.03

61

548

790

196

3

193

256

336

571522.1726

6451249.216

MIN_151891

RAB

RE0005534

20131203

0.5

0

29

272

772

112

5

430

129

337

571522.1685

6451239.215

MIN_151892

RAB

RE0005534

20131203

0

0.02

117

357

1257

135

5

174

114

338

571522.1643

6451229.215

MIN_151893

RAB

RE0005534

20131203

0

0

86

351

713

142

5

191

117

350

571572.1663

6451239.216

MIN_151907

RAB

RE0005534

20131203

0.6

0

213

722

993

167

19

215

120

352

571572.1652

6451259.216

MIN_151909

RAB

RE0005534

20131203

0

0

26

207

871

116

3

168

115

426

571243.1728

6451479.217

MIN_151991

RAB

RE0005534

20131203

0.6

0.03

64

1346

2077

207

4

355

97

1116

573422.1589

6455249.209

MIN_132567

UNK

RE0005534

20131203

0.6

0.03

91

223

85

131

36

321

526

756141

564106.1553

6463474.213

MIN_174482

AUGER

R00000311

19940623

0

0

 

406

24

 

35

 

190

1658557

574222.151

6456339.209

MIN_179779

RAB

R00004755

19890228

0.5

0

 

254

321

54

140

178

636

1658566

574222.1572

6456249.208

MIN_179788

RAB

R00004755

19890228

0.1

0.02

 

291

10

87

65

162

685

1659032

575022.1521

6456309.209

MIN_179895

RAB

R00004755

19890228

0.1

0.03

 

465

323

105

120

150

397

12YCRAB087

572322.3516

6490429.493

MIN_048025

RAB

RE0004161

20130226

0.3

0.38

 

235

5090

54

139

13

221

1800E1140N

575705.1569

6453802.21

MIN_215515

RAB

R00016190

19781123

 

 

 

250

1900

300

20

 

140

1800E1180N

575701.16

6453827.21

MIN_215519

RAB

R00016190

19781123

 

 

 

2500

1000

800

30

 

120

1800E1200N

575699.1626

6453839.21

MIN_215521

RAB

R00016190

19781123

 

 

 

950

2100

500

30

 

100

2800E1160S

573969.1558

6456304.209

MIN_192113

RAB

R00009949

19820427

 

 

 

250

250

160

140

 

600

2925E1000S

574073.1545

6456479.209

MIN_192118

RAB

R00009949

19820427

 

 

 

300

300

160

50

 

550

2925E1080S

574083.1579

6456400.209

MIN_192120

RAB

R00009949

19820427

 

 

 

250

350

140

140

 

750

2925E1160S

574093.1517

6456321.209

MIN_192124

RAB

R00009949

19820427

 

 

 

200

350

200

180

 

1700

2925E1220S

574101.1585

6456261.209

MIN_192127

RAB

R00009949

19820427

 

 

 

200

300

100

350

 

800

2925E1240S

574104.1579

6456241.209

MIN_192128

RAB

R00009949

19820427

 

 

 

1000

750

220

1500

 

1400

2925E1340S

574117.1507

6456142.209

MIN_192133

RAB

R00009949

19820427

 

 

 

320

120

200

1000

 

1000

3050E1040S

574202.1503

6456456.209

MIN_192136

RAB

R00009949

19820427

 

 

 

350

400

200

90

 

650

3050E780S

574168.1488

6456714.209

MIN_192154

RAB

R00009949

19820427

 

 

 

200

550

120

500

 

700

3300E520N

574246.1526

6458035.209

MIN_192168

RAB

R00009949

19820427

 

 

 

200

700

250

40

 

250

3300E560N

574241.1447

6458075.209

MIN_192170

RAB

R00009949

19820427

 

 

 

400

850

90

600

 

160

3300E600N

574235.145

6458115.209

MIN_192172

RAB

R00009949

19820427

 

 

 

300

4900

160

30

 

140

3425E600S

574516.148

6456941.208

MIN_192177

RAB

R00009949

19820427

 

 

 

350

140

90

70

 

300

3425E660S

574524.1508

6456882.209

MIN_192180

RAB

R00009949

19820427

 

 

 

1100

200

200

140

 

550

3425E720S

574532.1556

6456822.209

MIN_192183

RAB

R00009949

19820427

 

 

 

250

550

120

60

 

800

3E-4.5N

576546.1576

6453754.21

MIN_228885

RAB

R00023083

19770523

 

 

 

1300

2000

400

60

 

100

3E-4.7N

576548.1587

6453764.21

MIN_228887

RAB

R00023083

19770523

 

 

 

300

3200

600

100

 

40

3E-4.9N

576549.1591

6453774.21

MIN_228889

RAB

R00023083

19770523

 

 

 

6100

14000

400

80

 

250

3E-5.0N

576550.1596

6453779.21

MIN_228890

RAB

R00023083

19770523

 

 

 

300

3700

350

70

 

80

3E-5.1N

576551.1621

6453783.21

MIN_228891

RAB

R00023083

19770523

 

0.13

 

1500

3300

450

40

 

70

3E-5.2N

576552.1627

6453788.21

MIN_228892

RAB

R00023083

19770523

 

 

 

850

3100

250

60

 

120

3E-5.3N

576553.1614

6453794.209

MIN_228893

RAB

R00023083

19770523

 

 

 

850

1500

300

70

 

140

3E-6N

576557.1555

6453828.21

MIN_228897

RAB

R00023083

19770523

 

 

 

250

900

250

70

 

250

5500N790E

550835.1541

6477077.182

MIN_181494

RAB

R00005255

19900925

14

0.006

 

275

45

40

15

 

50

CBEAC0096

569930.3451

6466370.494

MIN_064677

ACORE

R00037730

20080306

0

0.042

180

245

468

202

45

459

277

CBEAC0105

569280.3449

6465650.494

MIN_064686

ACORE

R00037730

20080306

0

0.023

640

283

447

255

53

758

359

FC1-35E

570480.1669

6455411.214

MIN_215969

RAB

R00016273

19781206

 

 

 

220

180

160

80

 

550

FC1-40E

570575.1626

6455399.214

MIN_215976

RAB

R00016273

19781206

 

 

 

400

300

80

90

 

720

FC3.5W440N

570213.1619

6456434.215

MIN_216059

RAB

R00016273

19781206

 

 

 

350

250

60

-5

 

250

FC4W-1N

570604.1678

6456213.213

MIN_216131

RAB

R00016273

19781206

 

 

 

350

1700

160

90

 

400

FC6W-60N

570994.1644

6456574.212

MIN_216232

RAB

R00016273

19781206

 

 

 

250

1300

200

60

 

400

FCR024

564400.3476

6452800.495

MIN_151082

RAB

R00029684

20040903

0.1

-0.001

 

210

398

113

6

 

170

QRT 1W-3S

574568.1606

6455674.209

MIN_228969

RAB

R00023083

19770523

 

 

 

350

70

140

180

 

200

QRT 3E5.5N

575579.1564

6455907.208

MIN_228979

RAB

R00023083

19770523

 

 

 

200

120

100

60

 

160

RABZIG097

578502.3533

6458728.494

MIN_101935

RAB

RE0002825

20120105

0.1

 

 

337

192

112

9

414

211

RDB227

574122.1597

6453254.212

MIN_224569

ACORE

R00020961

19990219

0.1

0.98

 

750

270

220

16

410

130

RDB251

574272.1498

6458129.209

MIN_224593

ACORE

R00020961

19990219

0.1

3.04

 

410

5100

105

12

260

190

RDB273

570722.172

6446279.213

MIN_224615

ACORE

R00020961

19990219

0.1

0.014

 

210

330

120

8

1050

500

RDB351

574422.1476

6458179.208

MIN_224693

ACORE

R00020961

19990219

1.5

0.004

 

330

320

350

12

550

125

RDB387

574222.1707

6446129.21

MIN_224729

ACORE

R00020961

19990219

1

0.003

 

210

195

130

24

550

500

RDB388

574222.1679

6446179.21

MIN_224730

ACORE

R00020961

19990219

0.1

-0.001

 

200

170

130

82

290

600

RFTKA0257

572534.1606

6455712.21

MIN_196905

AUGER

R00010917

19811027

 

 

 

250

60

90

15

 

120

RFTKA0275

572323.1543

6457557.211

MIN_196923

AUGER

R00010917

19811027

 

 

 

320

200

80

120

 

400

RFTKA0878

573155.1572

6456742.21

MIN_197308

AUGER

R00010917

19811027

 

 

 

200

80

90

650

 

400

RFTKA1450

574088.1559

6456360.209

MIN_192713

AUGER

R00009949

19820427

 

 

 

300

90

60

250

 

350

RFTKA1745

574238.1448

6458095.209

MIN_228067

AUGER

R00023023

19781027

 

 

 

950

350

30

5

 

50

RFTKA1747

574235.145

6458115.209

MIN_228069

AUGER

R00023023

19781027

 

0.1

 

9500

11000

450

50

 

180

RFTKA1766

574413.1571

6456766.209

MIN_228088

AUGER

R00023023

19781027

 

 

 

700

100

50

30

 

250

RFTKA1921

574751.1532

6457073.209

MIN_197619

AUGER

R00010917

19811027

 

 

 

200

60

40

50

 

180

T0.5W-0.3N

575996.1618

6453701.211

MIN_228981

RAB

R00023083

19770523

 

 

 

250

450

80

70

 

140

T0.5W-10N

576000.1558

6453815.21

MIN_228985

RAB

R00023083

19770523

 

 

 

1700

2200

550

40

 

140

T0.5W-14N

576001.1626

6453831.21

MIN_228986

RAB

R00023083

19770523

 

 

 

1100

400

550

60

 

200

T0.5W-2N

575998.1625

6453749.21

MIN_228991

RAB

R00023083

19770523

 

 

 

250

1000

250

80

 

120

T0W-10.3S

576352.1561

6453788.21

MIN_228994

RAB

R00023083

19770523

 

 

 

550

1300

350

100

 

80

T0W-10.6S

576352.1567

6453778.21

MIN_228995

RAB

R00023083

19770523

 

 

 

550

950

400

40

 

90

T0W-11.3S

576351.1552

6453759.21

MIN_228997

RAB

R00023083

19770523

 

 

 

950

800

500

40

 

60

T0W-11SR

576351.1565

6453768.209

MIN_228999

RAB

R00023083

19770523

 

 

 

200

600

200

40

 

140

T0W-12.3S

576350.1563

6453729.211

MIN_229000

RAB

R00023083

19770523

 

 

 

300

1100

300

50

 

70

T0W-12SR

576351.1565

6453739.21

MIN_229002

RAB

R00023083

19770523

 

 

 

350

1200

400

40

 

160

T1W-0

575554.1608

6453681.211

MIN_228733

AUGER

R00023081

19770305

 

 

 

200

400

160

60

 

120

T3.1W-2N

574017.1595

6453258.212

MIN_215553

RAB

R00016190

19781123

 

 

 

250

900

300

100

 

160

T3.1W-3N

574015.1668

6453267.212

MIN_215554

RAB

R00016190

19781123

 

 

 

250

850

250

100

 

80

T3.5W-5S

573705.1654

6453191.212

MIN_215563

RAB

R00016190

19781123

 

 

 

200

100

650

30

 

140

T4W-1.5S

573354.1622

6453206.212

MIN_229051

RAB

R00023083

19770523

 

 

 

400

1200

250

50

 

60

T4W-1S

573354.1604

6453211.213

MIN_228835

AUGER

R00023081

19770305

 

 

 

250

400

300

20

 

80

T4W-2NR

573327.1612

6453244.212

MIN_215564

RAB

R00016190

19781123

 

 

 

200

1400

300

60

 

70

T4W-2S

573354.164

6453201.213

MIN_228837

AUGER

R00023081

19770305

 

 

 

250

900

160

30

 

50

T4W-3.5S

573355.1677

6453187.213

MIN_229053

RAB

R00023083

19770523

 

 

 

500

1000

450

40

 

60

T4W-3S

573355.1588

6453191.212

MIN_228838

AUGER

R00023081

19770305

 

 

 

350

1100

300

30

 

40

T4W-4.5S

573356.1626

6453177.213

MIN_229054

RAB

R00023083

19770523

 

 

 

250

1000

450

30

 

70

TG2-180S

571344.1714

6451219.216

MIN_216671

RAB

R00016273

19781206

 

 

 

200

30

140

10

 

200

TG3-120E

571590.1731

6451244.216

MIN_216703

RAB

R00016273

19781206

 

 

 

550

1400

180

80

 

180

TG4-40E

571478.1649

6451231.216

MIN_216725

RAB

R00016273

19781206

 

 

 

600

1500

120

15

 

70

TG4-80E

571514.1656

6451258.215

MIN_216727

RAB

R00016273

19781206

 

 

 

250

40

90

10

 

50

YC-1

571982.0878

6490578.184

MIN_116467

RC

R00054641

20060903

1.9

0

 

330

8830

 

31

 

7

YC-10

572091.0916

6490125.185

MIN_116468

RC

R00041850

20070903

2.3

0.03

 

316

6980

 

11

 

97

YC-11

572247.0907

6490130.186

MIN_116469

RC

R00041850

20070903

1.3

0.17

 

439

3880

 

63

 

283

YC-12

572409.0865

6490120.186

MIN_116470

RC

R00041850

20070903

3.6

0.12

 

1060

11100

 

246

 

1130

YC-2

572020.0927

6490578.185

MIN_116471

RC

R00054641

20060903

3.1

0.06

 

470

10000

 

50

 

12

YC-3

572060.0874

6490578.185

MIN_116472

RC

R00054641

20060903

1

0.06

 

454

3420

 

139

 

26

YC-6

572072.0919

6490677.185

MIN_116475

RC

R00054641

20060903

1.2

0.04

 

577

1835

 

116

 

19

YC-9

572034.0857

6490829.185

MIN_116478

RC

R00054641

20060903

0.5

0.06

 

1065

1515

 

300

 

43

ZH0210W

578780.1427

6460748.209

MIN_193475

RAB

R00009949

19820427

 

 

 

250

350

120

900

 

1100

ZIG01

578722.1424

6459179.208

MIN_116672

RC

R00029648

20040105

1

0.04

 

600

1200

86

1000

 

1600

ZIG02

578772.1431

6460779.209

MIN_116673

RC

R00029648

20040105

2

0.04

 

380

185

1250

900

 

2550

Notes:

1.  Coordinate system is GDA94 Zone 54.

2.  Criteria for listing was a historical drillhole sample assay that had one sample at least >200ppm cobalt.

3.  This is a preliminary analysis, evaluation is ongoing.

 

 

SECTION 2 REPORTING OF EXPLORATION RESULTS

(Criteria listed in the preceding section also apply to this section.)

Criteria

JORC Code explanation

Commentary

Mineral tenement and land tenure status

· Type, reference name/number, location and ownership including agreements or material issues with third parties such as joint ventures, partnerships, overriding royalties, native title interests, historical sites, wilderness or national park and environmental settings.

· The security of the tenure held at the time of reporting along with any known impediments to obtaining a licence to operate in the area.

EL 8434 is located about 28km east of Broken Hill whilst EL 8435 is 16km east of Broken Hill.  Both tenures are approximately 900km northwest of Sydney in far western New South Wales (Figure A12-1). 

EL 8434 and EL 8435 were both granted on the 2nd of June 2016 to Squadron Resources for a term of five (5) years for Group One Minerals .  On the 25th of May 2020, Squadron Resources changed its name to Wyloo Metals Pty Ltd (Wyloo).  In December 2020 the tenure was transferred from Wyloo Metals to Broken Hill Alliance Pty Ltd a 100% subsidiary company of Castillo Copper Limited.  Both tenures were renewed on the 12th of August 2021 for a further six (6) years and are due to expire on the 2nd of June 2027.

EL 8434 lies across two (2) 1:100,000 geology map sheets Redan 7233 and Taltingan 7234, and two (2) 1:250,000 geology map sheets, SI54-3 Menindee and SH54-15 Broken Hill in the county of Yancowinna.  EL 8434 consists of one hundred and eighty-six (186) units) in the Adelaide and Broken Hill 1:1,000,000 Blocks covering an area of approximately 580km2.

EL 8435 is located on the 1:100,000 geology map sheet Taltingan 7234, and the 1:250,000 geology map sheet SH/54-15 Broken Hill in the county of Yancowinna.  EL 8435 consists of twenty-two (22) units (Table 1) in the Broken Hill 1:1,000,000 Blocks covering an area of approximately 68km2.

Access to the tenures from Broken Hill is via the sealed Barrier Highway.  This road runs north-east to south-west through the northern portion of the EL 8434, passes the southern tip of EL 8435 eastern section and through the middle of the western section of EL 8435.  Access is also available via the Menindee Road which runs north-west to south-east through the southern section of the EL 8434.  The Orange to Broken Hill Rail line also dissects EL 8435 western section the middle and then travels north-west to south-east slicing through the eastern arm of EL 8434 (Figure A3-2-1).

Figure A3-2-1:  EL 8434 and EL 8434 General Location Map

(view image on PDF version linked above)

 

Exploration done by other parties

· Acknowledgment and appraisal of exploration by other parties.

Explorers who were actively involved over longer historical periods in various parts of EL8434 and 8435 were: - North Broken Hill Ltd, CRAE Exploration, Major Mining Ltd and Broken Hill Metals NL, Pasminco Exploration Ltd, Normandy Exploration Ltd, PlatSearch NL/Inco Ltd/ EGC Pty Ltd JV and the Western Plains Gold Ltd/PlatSearch/EGC Pty Ltd JV.

A comprehensive summary of work by previous explorers was presented in Leyh (2009). However, more recently, follow-up field reconnaissance of areas of geological interest, including most of the prospective zones was carried out by EGC Pty Ltd over the various licenses. This work, in conjunction with a detailed interpretation of aeromagnetic, gravity plus RAB / RC drill hole logging originally led to the identification of at least sixteen higher priority prospect areas. All these prospects were summarized in considerable detail in Leyh (2008).  Future work programs were then also proposed for each area.  Since then, further compilation work plus detailed geological reconnaissance mapping and sampling of gossans and lode rocks has been carried out.

A total of 22 prospects were then recognised on the exploration licence with at least 12 occurring in and around the tenure.

With less than 15% outcropping Proterozoic terrain within the licence, this makes it very difficult to explore and is in the main very effectively screened from the easy application of more conventional exploration methodologies due to a predominance of extensive Cainozoic cover sequences.  These include recent to young Quaternary soils, sands, clays and older more resistant, only partially dissected, Tertiary duricrust regolith covered areas.  Depth of cover ranges from a few metres in the north to over 60 metres in some areas on the southern and central license.

Exploration by EGC Pty Ltd carried out in the field in the first instance has therefore been heavily reliant upon time consuming systematic geological reconnaissance mapping and relatable geochemical sampling. These involve a slow systematic search over low outcropping areas, poorly exposed subcrops and float areas as well as the progressive development of effective regolith mapping and sampling tools.  This work has been combined with a vast amount of intermittently acquired past exploration data.  The recent data compilation includes an insufficiently detailed NSWGS regional mapping scale given the problems involved, plus some regionally extensive, highly variable, low-level stream and soil BLEG geochemical data sets over much of the area. 

There are also a few useful local detailed mapping grids at the higher priority prospects, and many more numerous widespread regional augers, RAB and percussion grid drilling data sets. Geophysical data sets including ground magnetics, IP and EM over some prospect areas have also been integrated into the exploration models.  These are located mainly in former areas of moderate interest and most of the electrical survey methods to date in this type of terrain continue to be of limited application due to the high degree of weathering and the often prevailing and complex regolith cover constraints.

Between 2007 and 2014 Eaglehawk Geological Consulting has carried out detailed research, plus compilation and interpretation of a very large volume of historic exploration data sourced from numerous previous explorers and dating back to the early 1970's. Most of this data is in non-digital scanned form. Many hard copy exploration reports (see references) plus several hundred plans have been acquired from various sources, hard copy printed as well as downloaded as scans from the Geological Survey of NSW DIGS system. They also conducted field mapping, costean mapping and sampling, and rock chip sampling and analysis.

Work Carried out by Squadron Resources and Whyloo Metals 2016-2020

Research during Year 1 by Squadron Resources revealed that the PGE-rich, sulphide-bearing ultramafic rocks in the Broken Hill region have a demonstrably alkaline affinity.  This indicates a poor prospectivity for economic accumulations of sulphide on an empirical basis (e.g., in comparison to all known economic magmatic nickel sulphide deposits, which have a dominantly tholeiitic affinity).  Squadron instead directed efforts toward detecting new Broken Hill-Type (BHT) deposits that are synchronous with basin formation.  Supporting this modified exploration rationale are the EL's stratigraphic position, proximity to the Broken Hill line of lode, abundant mapped alteration (e.g., gahnite and/or garnet bearing exhalative units) and known occurrences such as the "Sisters" and "Iron Blow" prospects.

The area overlies a potential magmatic Ni-Cu-PGE source region of metasomatised sub-continental lithospheric mantle (SCLM) identified from a regional targeting geophysical data base.  The exploration model at the time proposed involved remobilization of Ni-Cu-PGE in SCLM and incorporation into low degree mafic-ultramafic partial melts during a post-Paleoproterozoic plume event and emplacement higher in the crust as chonoliths/small intrusives - Voisey's Bay type model.  Programs were devised to use geophysics and geological mapping to locate secondary structures likely to control and localise emplacement of Ni-Cu-PGE bearing chonoliths. Since EL8434 was granted, the following has been completed:

Airborne EM survey.

Soil and chip sampling.

Data compilation.

Geological and logistical reconnaissance.

Community consultations; and

Execution of land access agreements.

 

Airborne EM Survey

Geotech Airborne Limited was engaged to conduct an airborne EM survey using their proprietary VTEM system in 2017.  A total of 648.92-line kilometres were flown on a nominal 200m line spacing over a portion of the project area. Several areas were infilled to 100m line spacing.

The VTEM data was interpreted by Southern Geoscience Consultants Pty Ltd, who identified a series of anomalies, which were classified as high or low priority based on anomaly strength (i.e., does the anomaly persist into the latest channels).  Additionally, a cluster of VTEM anomalies at the "Sisters" prospect have been classified separate due to strong IP effects observed in the data.  Geotech Airborne have provided an IP corrected data and interpretation of the data has since been undertaken.

Soil and Chip sampling

The VTEM anomalies were followed up by a reconnaissance soil sampling programme. Spatially clustered VTEM anomalies were grouped, and follow-up soil lines were designed.  Two (2) VTEM anomalies were found to be related to culture and consequently no soils were collected.  Two (2) other anomalies were sampled which were located above thick alluvium of Stephens Creek and were therefore not sampled.  A line of soil samples was collected over a relatively undisturbed section at Iron Blow workings and the Sisters Prospect.

One hundred and sixty-six (166) soil samples were collected at a nominal 20cm depth using a 2mm aluminium sieve.  Two (2) rock chips were also collected during this program.  The samples were collected at either 20m or 40m spacing over selected VTEM anomalies.  The samples were pulverised and analysed by portal XRF at ALS laboratories in Perth.

Each site was annotated with a "Regolith Regime" such that samples from a depositional environment could be distinguished from those on exposed Proterozoic bedrock, which were classified as an erosional environment.  The Regolith Regime groups were used for statistical analysis and levelling of the results.  The levelled data reveals strong relative anomalies in zinc at VTEM anomaly clusters 10, 12 and 14 plus strong anomalous copper at VTEM 17.

Geology

· Deposit type, geological setting, and style of mineralisation.

Regional Geology

The Broken Hill polymetallic deposits are located within Curnamona Province (Willyama Super group) (Figure A3-2-2) that hosts several world-class deposits of lead, zinc, silver, and copper.  The Willyama Supergroup consists of highly deformed metasedimentary schists and gneisses with abundant quartz-feldspathic gneisses, lesser basic gneisses, and minor 'lode' rocks which are quartz-albite and calc-silicate rocks (Geoscience Australia, 2019).  Prograde metamorphism ranges from andalusite through sillimanite to granulite grade (Stevens, Barnes, Brown, Stroud, & Willis, 1988).

Regionally, the tenures are situated in Broken Hill spatial domain which extends from far western New South Wales into eastern South Australia.  The Broken Hill Domain hosts several major fault systems and shear zones, which were formed by various deformation events and widespread metamorphism which has affected the Willyama Supergroup (Figure A3-2-3).  Major faults in the region include the Mundi Mundi Fault to the west of Broken Hill, the Mulculca Fault to the east, and the Redan Fault to the south. Broken Hill is also surrounded by extensive shear zones including the Stephens Creek, Globe-Vauxhall, Rupee, Pine Creek, Albert, and Thackaringa-Pinnacles Shear Zones.

 

Figure A3-2-2:  Regional Stratigraphy (view image on PDF version linked above)

Figure A3-2-3:  Regional Geological Map (view image on PDF version linked above)

There are over twenty (20) rock formations mapped within the project area.  Parts of the project area are covered by Quaternary alluvium, sands, and by Tertiary laterite obscuring the basement geology.  Within the Lower to Middle Proterozoic Willyama Supergroup (previously Complex) there are two (2) groups, the Thackaringa Group, and the younger Broken Hill Group (Colquhoun, et al., 2019). 

Local Geology

A summary of the units that host or appear to host the various mineralisation styles within EL 8434 and EL 8435 is given below.

Broken Hill Group

The Hores Gneiss is mostly comprised of quartz-feldspar-biotite-garnet gneiss, interpreted as metadacite with some minor metasediments noted.  An age range from Zircon dating has been reported as 1682-1695Ma (Geoscience Australia, 2019).  The Allendale Metasediments unit contains mostly metasedimentary rocks, dominated by albitic, pelitic to psammitic composite gneiss, including garnet-bearing feldspathic composite gneiss, sporadic basic gneiss, and quartz-gahnite rock.  Calc-silicate bodies can be found at the base of the unit and the formation's average age is 1691 Ma (Geoscience Australia, 2019).

Thackaringa Group

The Thorndale Composite Gneiss is distinguished by mostly gneiss, but also migmatite, amphibolite, and minor magnetite.  The age of this unit is >1700Ma (Geoscience Australia, 2019) and is one of the oldest formations in the Group.  The Cues Formation is interpreted as a deformed sill-like granite, including Potosi-type gneiss.  Other rock-types include pelitic paragneiss, containing cordierite.  The average age: ca 1700-1730 Ma. (Stevens, Barnes, Brown, Stroud, & Willis, 1988).  Other rock types include mainly psammo-pelitic to psammitic composite gneisses or metasedimentary rocks, and intercalated bodies of basic gneiss.  This unit is characterised by stratiform horizons of granular garnet-quartz +/-magnetite rocks, quartz-iron oxide/sulphide rocks and quartz-magnetite rocks (Geoscience Australia, 2019).  This is a significant formation as it hosts the Pinnacles Ag-Pb-Zn massive sulphide deposit along with widespread Fe-rich stratiform horizons.  The protolith was probably sandy marine shelf sedimentary rocks.  An intrusion under shallow cover was syn-depositional.  The contained leuco-gneisses and Potosi-type gneisses are believed to represent a felsic volcanic or volcaniclastic protolith.  Basic gneisses occur in a substantial continuous interval in the middle sections of the Formation, underlain by thinner, less continuous bodies.  They are moderately Fe-rich (abundant orthopyroxene or garnet) and finely layered, in places with pale feldspar-rich layers, and are associated with medium-grained quartz-feldspar-biotite-garnet gneiss or rock which occurs in thin bodies or pods ('Potosi-type' gneiss).  A distinctive leucocratic quartz-microcline-albite(-garnet) gneiss (interpreted as meta-rhyolite) occurs as thin, continuous, and extensive horizons, in several areas.  The sulphide-bearing rocks may be lateral equivalents of, or associates of Broken Hill type stratiform mineralisation.  Minor layered garnet-epidote-quartz calc-silicate rocks occur locally within the middle to basal section.  The unit is overlain by the Himalaya Formation.  The Cues Formation is intruded by Alma Granite (Geoscience Australia, 2019).  The Himalaya Formation (Figure A3-2-4) consists of medium-grained saccharoidal leucocratic psammitic and albitic meta-sedimentary rocks (average age 1700Ma).  The unit comprises variably interbedded albite-quartz rich rocks, composite gneiss, basic gneiss, horizons of thinly bedded quartz-magnetite rock.  Pyrite-rich rocks occur at the base of the formation (Geoscience Australia, 2019).  It is overlain by the Allendale Metasediments (Broken Hill Group).  The Himalaya Formation hosts cobalt-rich pyritic horizons at Pyrite Hill and Big Hill.  The protolith is probably sandy marine shelf sedimentary rocks with variable evaporitic or hypersaline component.  Plagioclase-quartz rocks are well-bedded (beds 20 - 30mm thick), with rare scour-and-fill and cross-bedded structures.  Thin to thick (0.5 - 10m) horizons of thinly bedded quartz-magnetite rock also occur with the plagioclase-quartz rocks.  In some areas the formation consists of thin interbeds of plagioclase-quartz rocks within meta-sedimentary rocks or metasedimentary composite gneiss (Geoscience Australia, 2019).  Lady Brassey Formation which is well-to-poorly-bedded leucocratic sodic plagioclase-quartz rock, as massive units or as thick to thin interbeds within psammitic to pelitic metasedimentary composite gneisses.  A substantial conformable basic gneiss.  It overlies both Mulculca Formation and Thorndale Composite Gneiss.  Part of the formation was formerly referred to as Farmcote Gneiss in the Redan geophysical zone of Broken Hill Domain - a zone in which the stratigraphy has been revised to create the new Rantyga Group (Redan and Ednas Gneisses, Mulculca Formation, and the now formalised Farmcote Gneiss).

Lady Louise Suite

This unit is approximately 1.69Ma in age comprising amphibolite, quartz-bearing, locally differentiated to hornblende granite, intrusive sills, and dykes, metamorphosed, and deformed; metabasalt with pillows (Geoscience Australia, 2019).  Annadale Metadolerite is basic gneisses, which includes intervening metasedimentary rocks possibly dolerite (Geoscience Australia, 2021).

Rantya Group

Farmcote Gneiss contains metasediments and gneiss and is a new unit at the top of Rantyga Group.  It is overlain by the Cues Formation and Thackaringa Group, and it overlies the Mulculca Formation.  The age of the unit is between 1602 to 1710Ma.  Mulculca Formation is abundant metasedimentary composite gneiss, variable sodic plagioclase-quartz-magnetite rock, quartz-albite-magnetite gneiss, minor quartz-magnetite rock common, minor basic gneiss, albite-hornblende-quartz rock (Geoscience Australia, 2019).  Ednas Gneiss contains quartz-albite-magnetite gneiss, sodic plagioclase-quartz-magnetite rock, minor albite-hornblende-quartz rock, minor quartzo-feldspathic composite gneiss.  It is overlain by Mulculca Formation.

Silver City Suite

Formerly mapped in the Thackaringa Group this new grouping accommodates the metamorphosed and deformed granites.  A metagranite containing quartz-feldspar-biotite gneiss with variable garnet, sillimanite, and muscovite, even-grained to megacrystic, elongate parallel to enclosing stratigraphy. It occurs as sills and intrudes both the Thackeringa Group and the Broken Hill Group.  This unit is aged between 1680 to 1707Ma.

Torrowangee Group

Mulcatcha Formation comprises flaggy, quartzose sandstone with lenticular boulder and arkosic sandstone beds.  Yangalla Formation contains boulder beds, lenticular interbedded siltstone, and sandstone.  It overlies the Mulcatcha Formation (Geoscience Australia, 2020).

Sundown Group

The Sundown Group contains Interbedded pelite, psammopelitic and psammitic metasedimentary rocks and it overlies the Broken Hill Group.  The unit age is from 1665 to 1692Ma. 

There is also an unnamed amphibolite in Willyama Supergroup, which present typically medium grained plagioclase and amphibole or pyroxene rich stratiform or discordant dykes.

Figure A3-2-4:  EL 8434 and EL 8435 Solid Geology (view image on PDF version linked above)

Drill hole Information

· A summary of all information material to the understanding of the exploration results including a tabulation of the following information for all Material drill holes:

o easting and northing of the drill hole collar

o elevation or RL (Reduced Level - elevation above sea level in metres) of the drill hole collar

o dip and azimuth of the hole

o down hole length and interception depth

o hole length.

· If the exclusion of this information is justified on the basis that the information is not Material and this exclusion does not detract from the understanding of the report, the Competent Person should clearly explain why this is the case.

· No new drillholes have been completed yet.

Data aggregation methods

· In reporting Exploration Results, weighting averaging techniques, maximum and/or minimum grade truncations (e.g., cutting of high grades) and cut-off grades are usually Material and should be stated.

· Where aggregate intercepts incorporate short lengths of high-grade results and longer lengths of low-grade results, the procedure used for such aggregation should be stated and some typical examples of such aggregations should be shown in detail.

· The assumptions used for any reporting of metal equivalent values should be clearly stated.

· No new assays are reported in this announcement

Relationship between mineralisation widths and intercept lengths

· These relationships are particularly important in the reporting of Exploration Results.

· If the geometry of the mineralisation with respect to the drill hole angle is known, its nature should be reported.

· If it is not known and only the down hole lengths are reported, there should be a clear statement to this effect (e.g. 'down hole length, true width not known').

· As a database of all the historical borehole sampling has not yet been compiled and validated (in progress) it is uncertain if there is a relationship between the surface sample anomalies to any subsurface anomalous intersections.  Mineralisation is commonly associated with shears, faults, and pegmatitic intrusions within the shears, or on or adjacent to the boundaries of the Himalaya Formation.

· No existing geological 3D models exist but preliminary investigation has shown that sufficient data may be available to generate a small resource of cobalt or zinc.

Diagrams

· Appropriate maps and sections (with scales) and tabulations of intercepts should be included for any significant discovery being reported These should include, but not be limited to a plan view of drill hole collar locations and appropriate sectional views.

· Current surface anomalies are shown on maps in the report.  All historical surface sampling has had their coordinates converted to MGA94, Zone 54.

Balanced reporting

· Where comprehensive reporting of all Exploration Results is not practicable, representative reporting of both low and high grades and/or widths should be practiced to avoid misleading reporting of Exploration Results.

· No new exploration results have been reported, but regarding the surface sampling, no results other than duplicates, blanks or reference standard assays have been omitted.

Other substantive exploration data

· Other exploration data, if meaningful and material, should be reported including (but not limited to): geological observations; geophysical survey results; geochemical survey results; bulk samples - size and method of treatment; metallurgical test results; bulk density, groundwater, geotechnical and rock characteristics; potential deleterious or contaminating substances.

· Historical explorers have also conducted airborne and ground gravity, magnetic, EM, and IP resistivity surveys over parts of the tenure area but this is yet to be collated.

Further work

· The nature and scale of planned further work (e.g., tests for lateral extensions or depth extensions or large-scale step-out drilling).

· Diagrams clearly highlighting the areas of possible extensions, including the main geological interpretations and future drilling areas, provided this information is not commercially sensitive.

Work has commenced on Stage 2, which is to identify more anomalies and priority zones within the EL 8434 and EL8435, it is recommended that:

· The non-sampled zone in the centre of the tenure be defined and sampled.

· A more detailed study of historical drillholes should be conducted to determine if enough data exists to estimate a JORC resource; and

· A program of field mapping and ground magnetic or EM surveys be planned and executed.

 

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