The first project comprises EL 3084 and is known as Intercept Hill. In our view it is ideally situated within a highly prospective province for IOCG deposits. Indeed, it lies close to a cluster of known IOCG deposits, including Oak Dam and Emmie Bluff.
The high-profile Carrapateena discovery lies just 25km to the east-southeast. IOCG mineralisation has been identified to depths below 800 metres and in fact a previous hole on the EL intersected haematite-rich rocks broadly similar to the upper zones at Olympic Dam.
The company has announced the first results following the resumption of its drilling programme, from hole IHAD5. This particular hole was situated 500 metres to the north-northwest of previous hole IHAD2 drilled last year, which intersected copper mineralisation.
The first target in the hole was the shallower Tapley Hill Formation at around 400 metres depth, followed by the much deeper basement from around 900- 1,100 metres depth.
Hole IHAD5 confirmed that the Tapley Hill Formation is 6.6 metres thick at this particular location, with the mineralised interval thickness and grade exceeding expectations. The weighted average of the intercept from 392-399 metres depth was 5.76 metres @ 1.67% copper, 18.5g/t silver, 495g/t cobalt and 2,387g/t zinc.
At current metal prices, the intercept equates to 5.76 metres @ 2.47% copper-equivalent. The results also represent a fourfold increase in the thickness of ore-grade mineralisation at this location, relative to intercepts from two previous holes drilled last year, IHAD2 & IHAD3.
We spoke to Dr Hugh Herbert on Wednesday this week and he confirmed that he believes the latest results are highly significant, as they represent a marked thickening and development of mineralisation within the Tapley Hill Formation in the IHAD5 area.
When combined with the reported 25 million tonne, 2.0% copper-equivalent Inferred Resources at Emmie Bluff to the immediate south, these results do underline the potential for commercial base metal mineralisation within the Tapley Hill Formation.
What is also significant is that intersections of mineralised Tapley Hill Formation commence at around 392 metres depth in three holes ? IHAD2, 3 & 5 ? suggesting the deposit is flat-lying.
The second interval of copper mineralisation the latest hole IHAD5 came from the basement iron-oxide rocks between 848 metres and 1099 metres depth. Although sub-economic, the hole produced a wide intercept of 180 metres @ 0.27% copper and 0.17g/t gold.
The evidence from both zones within hole IHAD5 confirms the existence of a mineralised IOCG system. The only questions now are how big can it be and where are the higher-grade zones to turn this into a commercially mineable deposit?
AXT Price at posting:
8.9¢ Sentiment: None Disclosure: Held
