Syndicated Metals (ASX:SMD) has acquired four tenements from Altona Mining (ASX:AOH), formerly Universal Resources Limited, that complement its Kalman South and Mount Remarkable projects near Mount Isa in Northwest Queensland.
The four strategic exploration licenses are considered highly prospective for copper, gold, molybdenum, rhenium, uranium, lead and zinc.
The agreement includes acquisition of Dronfield Joint Venture tenement (EPM14369) which covers a nine kilometre section of the Pilgrim Fault Zone and abuts EPM13870 (Syndicated 49%) that contains a significant portion of the Kalman molybdenum-rhenium-copper-gold deposit.
High priority copper and gold anomalies have already been identified at Dronfield with drilling targets presently being finalised.
The historical Nil Desperandum mine, 30 kilometres southwest of Kalman, is also included. Previous drilling returned significant widths of high grade copper and gold mineralisation including 22 metres at 2.23% Cu and 0.26g/t Au and 19 metres at 2.32% Cu and 0.56g/t Au.
Martin Pyle, Syndicated’s chairman, said “this acquisition further consolidates Syndicated’s ground position in the Kalman area and in particular over the highly prospective Pilgrim Fault Zone."
"The discovery of the Kalman deposit in which Syndicated has a significant interest, along with the numerous new targets emerging along this major regional structure highlight- the potential of the area for further significant discoveries.”
“Drilling of the priority Dronfield targets is expected to commence in the fourth quarter of 2010.”
The tenements have been acquired for a total consideration of 1.5 million ordinary shares in Syndicated.
The issue of up to 500,000 of the 1.5 million shares is contingent on the term of three of the tenements (EPMs 14366, 14545 and 14362) being renewed by the Queensland Mines Department and the issued shares will be escrowed for 12 months. Altona retains no residual rights with respect to the tenements.
EPM14369 “Dronfield” is currently held in a Joint Venture between Syndicated and Altona whereby Syndicated can earn up to a 70% interest in the tenement. The Joint Venture will terminate upon completion of the acquisition.
The tenement covers a nine kilometre strike length of the highly prospective Pilgrim Fault Zone and abuts EPM13870 (Syndicated 49%) which contains a significant portion of the Kalman Mo-Re-Cu-Au deposit.
Syndicated has recently outlined several strong copper and gold soil anomalies within the tenement along the Pilgrim Fault zone. Following further soil and rock chip sampling to better define the anomalies the higher priority targets will be drill tested.
To the east of the Pilgrim Fault a number of elevated gold in stream anomalies are present which require follow-up. Syndicated considers that these areas have potential for Tick Hill style gold mineralisation.
The tenement also partially encompasses the boundary of the Wimberu Granite. This intrusion is of similar age to granite suites in the eastern portion of the Mount Isa region which are considered to be fundamentally important in the formation of iron oxide copper gold (IOCG) deposits such as the Ernest Henry deposit.
The possibility that the margin of the intrusion may host an IOCG style alteration system has yet to be investigated.
EPM14366 “Bushy Park” is located to the southwest of EPM14369 and covers a number of historical copper-gold workings including the Nil Desperandum mine. Follow up drilling designed to extend and better define the mineralisation is planned.
The EPM14545 “Marumba” tenement abuts the Mount Remarkable Project and is located to the northwest of the Mary Kathleen uranium mine.
The tenement has potential for uranium and lead-zinc deposits and covers a radiometric anomaly which has not been investigated, as well as parts of the Deighton Pass Synform which contains Corella Formation sediments interpreted to be of the same age to those which host the Dugald River Pb-Zn deposit.
EPM14362 “Malbon Vale” is located to the north of EPM14366 and covers several aeromagnetic features which have not yet been fully investigated.