Silver City Minerals Ltd (ASX:SCI) has defined a new drill target at its Wilga Downs joint venture project located in western New South Wales.
The target is an electromagnetic conductor that shows similarities to conductors which led to Aeris Resources Ltd’s (ASX:AIS) Tritton copper-gold deposit and Peel Mining Ltd’s (ASX:PEX) more recent Mallee Bull copper-gold discovery.
Drilling is scheduled to commence within two weeks.
Data suggests the target is sulphide rich at depths of 200-250 metres below the surface.
Silver City can earn an 80% interest in the project from Thomson Resources Ltd (ASX:TMZ) by spending $800,000 over four years.
Background
Silver City has a focus on the Broken Hill and Cobar regions of Australia, both infrastructure rich productive mining camps.
It has a large 1,200 square kilometre tenement position in the Broken Hill region where it is exploring predominantly for lithium and zinc.
Cobar represents a new opportunity for Silver City as it farms into copper and gold exploration ground.
Broken Hill
The company is pioneering lithium exploration in the Broken Hill district and was recently granted three new exploration licences prospective for lithium.
Field teams continue to sample pegmatites within granted licences at Broken Hill.
The program is designed to discover lithium-bearing minerals such as spodumene and amblygonite with the view to assessing potential lithium resources.
The company has some 100 square kilometres of outcropping pegmatite on its tenements.
Unexpected lead-zinc
As an unexpected consequence of the pegmatite sampling program, a large lead-zinc anomaly has been identified within EL 8020 (Riddock).
This is an area where no historic lead-zinc mines or mineral occurrences are located. Similarly, no previous exploration has identified base metal mineralisation.
The world's largest zinc-lead-silver deposit is at Broken Hill.
Analysis
With the farm-in agreement at Cobar only recently being entered into, the rapid progression to the drilling phase shows that Silver City are committed to this new region.
The electromagnetic conductor has geophysical signatures that could represent a significant copper sulphide accumulation.
The pedigree of the Cobar mining district suggests potential for high grade copper, lead, zinc and associated gold mineralisation.
The conductor also shows strong similarities to those that led to the discoveries of the Tritton and Mallee Bull deposits located within the district.
The Silver City share price is up 120% year to date, trading at $0.038.
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