Drilling to date at the Borsko Jezero license in Serbia has delivered encouraging data as to the potential of economic mineralisation either in the copper-gold epithermal style or porphyry style, or both.
That’s the geological assessment of Mundoro Capital Inc (CVE:MUN), which is drilling the property alongside joint venture partner Japan Oil Gas Metals National Corporation (JOGMEC).
The key message with the drilling for these first two drill holes on Target 1 at Borsko is that approximately 720 meters of alteration was intersected beginning around 580 meter down hole depth to approximately 1300 meters which is the end of drill hole BJ07.
Within that package of alternation drill results from early in June showed one intercept in BJ06 of 8.6 metres at 0.17% copper equivalent, including 0.6 metres at 0.75% copper equivalent.
The second hole BJ07 showed 1.4 metres at 0.76% copper equivalent, and a deeper intercept of 2.5 metres at 0.51% copper equivalent, including 1.18%; as well as a string of other intercepts were also encountered at lower grades.
A third hole drilled on Target 2 delivered the highest grade of all, 2.63 metres at 3.24% copper equivalent, albeit that it was at a depth of nearly 950 metres.
Mundoro will now prepare a follow-up drilling programme for the second half of 2017 to search for the high-sulphidation orebodies at that approximately 550 meter level.
The thinking is that this drilling shows that Borsko has the strong potential to host high sulphidation and porphyry style copper-gold mineralisation as the prospective lithocap horizon discovered through this program is directly analogous with the host horizons at the Bor underground high sulphidation deposits and Cukaru Peki discovery of Nevsun Resources.
JOGMEC earn-in provides major support
The current work at Borsko is the fruit of an amended earn-in agreement that was signed with JOGMEC in 2016. Under the terms of this agreement JOGMEC has the option to earn a 51% interest in four projects held by Mundoro, termed collectively the Timok North Projects.
To do this it must spend a total of US$4mln by March 2019, keeping to a specific expenditure timetable. JOGMEC has already completed its commitment to spend US$1 mln by March 2017 and is now embarking on the further stages.
In addition, JOGMEC also has the right to earn an additional 24% in the Timok North projects by funding the completion of a feasibility at a cost of up to US$32 mln within eight years of the agreement (March 2024).
On completion of that commitment JOGMEC will then have the right to purchase an additional 5% exercisable for a period of 60 days.
This arrangement means that Mundoro has mitigated financing risk quite considerably, while also ensuring that it has a heavyweight partner to take into any negotiations with the Serbian government.
Broad portfolio adds diversity
The Timok North properties are located on the Timok Magmatic Complex, which hosts significant copper-gold porphyry and related copper-gold epithermal deposits. The Timok Magmatic Complex is part of the wider and well-known Tethyan Metallogenic Belt, which hosts several world-class mines.
Mundoro holds other properties in this district outside of the joint venture, as well as additional exploration ground in Bulgaria.
What’s more, somewhat further away, the company also has a project in Mexico called Camargo, which it is looking to joint venture.
Chief executive Teo Dechev “very encouraged” by progress
“We are very encouraged with the results from the programme,” says Mundoro chief executive Teo Dechev.
The recent drilling was conducted on the basis of geophysics, she says, and because intensive alteration was encountered at depth drilling was extended down from the 600 metre plan.
“We have 750 metres of alteration and within that we have mineralisation as we showed in our drilling.”
Furthermore, she notes that the depths at which mineralisation is occurring here has parallels not far away.
“Another thing that’s interesting about these results is that just to the east of us is the very well-known Bor mine,” she says. “
If you read the literature about how that mine was formed what you’ll see is that at around 550 metres they also have their own high-suphidation orebodies.”
And the same thing is true of the Nevsun project. So there’s everything to play for here.
Drilling at the 100%-owned Mundoro property at Tilva Rosh has now completed and the results should be released to market in July. Reverse circulation drilling went to approximately 100 metre depth and Dechev expects the results to be “very interesting”.