Investigator Resources (ASX:IVR) has completed a geological review of its Paris project in South Australia, finding that an upcoming re-estimation of the silver resource will be supported by growing base metal potential.
Work on Paris’ geological framework has confirmed widespread ultramafic nickel sulphide potential at the site as well as enhanced porphyry and skarn copper potential.
A heritage survey is underway to gain drill access for new priority copper targets at the project’s Nankivel West area while the majority of nickel targets are already cleared.
Investigator has likewise filed applications for large tenements with additional copper and nickel potential based on breakthrough government research in the region.
Copper traction
Intersections of zinc lead, anomalous copper and multiphase intrusives at Nankivel West enhance the copper skarn and porphyry potential of the adjacent Nankivel Hill area.
Recent drilling has shown metal and mineral zoning along the Paris structural axis with increasing copper potential towards three large magnetic skarn targets and underlying porphyry potential at Nankivel Hill.
Broad intervals of anomalous zinc, lead or copper were intersected at the Nankivel West, Helen West and Peterlumbo Hill areas, with the best intersections all coming returning 12 metres at 1.28% zinc, 3 metres at 0.81% lead and 9 metres at 0.07% copper.
A full review of the drillhole geology and metal zoning is being undertaken to seek vectors to porphyry targets warranting further exploration definition. Drilling of the established skarn targets is proposed for early in 2016 after the heritage survey is finalised.
Nickel potential
A previously reported review of 2011 and 2014 scout drilling in the Diomedes area recognised nickel intersections in nine widespread holes with initial petrology identifying an ultramafic host.
Additional consultant petrology was recently undertaken for other nickel anomalous holes and this expanded the extent of confirmed basement ultramafics to another four holes in a 2-kilometre by 1-kilometre area.
Traces of probable nickel sulphide (pentlandite) were recognised with iron sulphide (pyrrhotite) and copper sulphide (chalcopyrite) in two holes.
Although some secondary nickel enrichment is usually expected at shallow depths, the presence of sulphides at 54 metres depth is very encouraging for nickel sulphide targets at Diomedes.
Intersections in older drilling (with no petrological material available) and magnetics indicate this area of the prospective ultramafic enclave to be at least 4 kilometres by 8 kilometres in size.
Expanding footprint
Investigator has recently applied for 4,273 square kilometres of new exploration tenements in the southern Gawler Craton as a result of the company’s recognition of a spectrum of Hiltaba (Olympic Dam) aged deposit styles in the Uno province and a government research breakthrough with mapping of a possible geophysical corridor between Olympic Dam and the Uno province.
Investigator reacted rapidly to recent magnetotelluric (MT) geophysical research by the University of Adelaide and the SA government that may have provided the awaited step-change method of mapping buried mineral provinces across the country.
Early rollout of the new MT technology in SA has indicated a deep geophysical corridor connecting the iconic Olympic Dam iron oxide copper gold (IOCG) province with the Uno province. This not only supports Investigator’s focus on the Uno province, but it also elevates the prospectivity of other segments of the corridor.
Accordingly, Investigator has recently applied for substantial ground showing refreshed IOCG copper and new nickel potential under the new leading edge concepts.
The majority of the new applications are on the Stuart Shelf, long explored for base metal deposits like Mount Gunson in the sedimentary cover. The new MT corridor corresponds with the trail of cover deposits suggesting a fundamental metal source at about 35km depth that has continually mineralised the upper crust.
Silver resource
These efforts add considerable variability and diversification potential to Paris, which is otherwise best known for its 20-million-ounce silver resource.
With a re-estimation of the resource expected in the near term, the silver deposit’s role as a foundation resource may be further expanded as a lead-in for a spectrum of discovery opportunities in copper, gold and nickel along with further silver lead zinc deposits.
Exploration work focused on Paris-style lead systems in the region last year delivered intersections grading up to 91.9 grams per tonne silver.
Stronger sentiment for precious metals (silver was last trading at US$15.82 per ounce) and a more favourable Australian dollar exchange rate has meanwhile put Investigator in a stronger position to exploit improving sentiment for silver as investors absorb its emerging status as a metal evenly split between the sectors of safe haven wealth storage and high-tech innovation.
The Silver Institute has called for industrial silver use to rise 27% by 2018.
Analysis
Investigator’s review of the geological framework at Paris is comprehensive and offers convincing upside for the broader project area in base metals.
Indicators at Paris of porphyry copper, ultramafic nickel sulphide and Olympic Dam-style IOCG mineralisation potential suggest that the regional geology that has so far confirmed the large silver resource is no fluke.
This framework of prospective geological settings (underpinned by ground-breaking government research) seems likely to result in high-quality drill targeting and opportunities to deliver meaningful drill results.
The heritage survey underway to gain drill access for new priority copper targets with majority of nickel target area already cleared should set up a solid news flow cycle.
Investigator has a first-mover advantage in this province, and as such, stands to benefit from the upside of early exploitation of the quickly evolving understanding of the local geology.
Paris has a similar geological setting to the world-class Imiter silver mine in Morocco, which boasts a massive resource of 290 million ounces of silver and underground production of 7.7 million ounces a year grading circa 440 g/t silver.
A favourable Australian dollar exchange rate and warming investor sentiment for silver bode well for Investigator, as ongoing exploration work aims to extend Paris’ already impressive 20-million-ounce silver resource.
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