Investigator Resources (ASX:IVR) should trade firmer after completing a new analysis of its outcrop and float assay data at its Uno/Morgans copper-silver project in South Australia.
Using a technique recently released by the Geological Survey of South Australia, Investigator exploited pathfinder trace elements in rock assays to identify large mineral systems related to the Olympic Dam mega-event.
The company had previously defined multiple large soil geochemical targets with supporting outcrops and float of epithermal quartz and oxidised sulphides that assayed up to 234 grams per tonne silver, 1.9% lead , 0.87% copper and 0.12% cobalt.
These lie within the Uno/Morgans tenements, just 85km east of the company’s Paris silver project with a maiden Inferred Minerals Resource containing 20 million ounces of silver.
The new analysis using pathfinder elements like lead, antimony and bismuth produced a strong IOCG-related signature, as regionally developed by the Geological Survey, for all Investigator’s Uno/Morgans targets.
This indicates that Investigator holds extensive epithermal systems of Olympic Dam age within an emerging minerals province.
Accordingly, there is potential for the company's untested silver, copper and gold targets to build on the Paris result.
There is the possibility of discovering large epithermal silver deposits in South Australia like those in Latin America that dominate global silver production including Fresnillo in Mexico and Pallacanta in Peru.
Investigator currently has a rights issue open with a closing date of 27th May 2014.
The rights issue of 2 for 5 at $0.04 with a 1 for 1 attached option is intended to raise up to $5 million to fund drilling of 13 priority silver and copper targets on Eyre Peninsula, and two IOCG copper gold targets on Yorke Peninsula.
The majority of the funds will be directed to this planned 28,000 metres of drilling, proposed to be mostly completed with assays returned by September 2014.
Proactive Investors Australia is the market leader in producing news, articles and research reports on ASX “Small and Mid-cap” stocks with distribution in Australia, UK, North America and Hong Kong / China.