Taiton Resources Ltd (ASX:T88) has demonstrated evidence of a large magmatic-hydrothermal system with potential molybdenum and silver mineralisation at the Highway Project within the Gawler Craton of South Australia.
At the Merino prospect, the company has observed porphyry-style hydrothermal textures and alternation.
Notably, portable XRF readings indicate the presence of molybdenum and silver in quartz veins hosted in brecciated and silicified host rocks.
Strong moly prices
The company's field evidence supports interpretations that the Highway Project is prospective within regional-scale ore-forming tectonics of MesoProterozoic age, exemplified by the world-class Olympic Dam iron-oxide copper gold (IOCG) deposit.
Providing particular encouragement for Taiton is the molybdenum as this year has seen a surge in prices due to ongoing supply shortages. Prices have skyrocketed by 94%, reaching an unprecedented US$90 per kilogram.
Moving forward, Taiton has kicked off an induced polarisation geophysics survey, to be followed by a gravity survey at the project.
"Hallmarks of Olympic Domain"
Taiton managing director Noel Ong said: “Today’s release is the confirmation of the company’s belief that we are in a new mineral system, a known mineralised system that has hallmarks of the Olympic Domain.
"The new findings have given the company the confidence that the theories are now coming into reality.
“Our exploration manager David McSkimming has been working hard to get our exploration program on track.
“The mapping and sampling have confirmed that we are in a fertile porphyritic environment which is showing early signs of molybdenum and silver mineralisation.
“The current findings are consistent with the historical drill results and we are excited to refine our target for our maiden drilling program.”
Potential to host iron and IOCG
Prior to commencing field activities, zircons were sampled from the drill core stored at the South Australian Drill Core Library, which was previously drilled at locations now within Taiton’s tenements.
Geochemical and geochronological analyses of zircons suggest that much of the Highway Project area was tectonically active at the same time as the formation of significant mineral deposits including BHP’s Olympic Dam and Oak Dam West, and Oz Mineral Limited’s Carrapateena and Prominent Hill.
The interpretation from the zircon work is that the Highway Project area preserves evidence for extension in an intra-continental back-arc setting.
The findings from the field mapping, including porphyry style textures and anomalous molybdenum and silver conform to this interpretation.
Forward plan
An induced polarisation (IP) and magnetotelluric (MT) survey has started with the aim to systematically assess areas of Merino Prospect.
This is prioritised by surface mapping and modelling, much of which is undercover and remains unexplored.
The IP survey will also include Angus Prospect, which is five kilometres to the southwest of Merino Prospect.
The purpose of the IP is to delineate sulphide minerals, in particular pyrite, which may occur as an accessory to the target mineralisation or a halo around a porphyry core.
Furthermore, a geophysics survey is on the cards anticipated to take two to three weeks.