Emmerson Resources (ASX:ERM) has intersected shallow epithermal gold-silver mineralisation and deeper porphyry copper-gold in its first hole at the Kadungle project located in New South Wales.
Assay results from the KDD015 diamond hole reveal multiple zones of mineralisation indicating epithermal gold mineralisation followed by copper porphyry mineralisation at depth.
This drill hole not only extends the known mineralisation but points to the potential for both shallow epithermal gold-silver and deeper porphyry copper-gold mineralisation over a large area.
Rob Bills, managing director, commented: “Given we have established the presence of a large mineralised system, exploration will now focus on a systematic program to pinpoint the higher grade zones for both gold and copper.
“This will include induced polarisation surveys to penetrate beneath the lithocap and better define the quartz-pyrite alteration and allow targeting for both deeper copper-gold and shallow, low sulphidation gold-silver mineralisation.”
KDD015 assay results
New aeromagnetic survey data has defined a circular zone of magnetite destructive alteration exceeding ~1 kilometre in diameter.
Drill hole KDD015 within this zone intersected multiple zones of alteration and mineralisation.
Shallow, intermittent epithermal quartz veining assayed:
- 12 metres at 0.51 g/t gold from 8 metres; and
- 25.6 metres at 0.38 g/t gold from 23.4 metres including 1 metre at 2.78 g/t gold.
Assays from deeper down the hole included:
- 30 metres at 0.19 g/t gold and 0.24% copper from 117 metres; and
- 21 metres at 0.19 g/t gold and 0.13% copper from 152 metres.
Results support historical drilling
This drill hole supports the previous historical drilling where shallow epithermal veins were intersected with best assays of 12 metres at 7.7 g/t gold in drill hole KDD002.
Similarly, deeper disseminated and veined copper-gold produced intersections of 37 metres at 0.23% copper including 6 metres at 1.1% copper in KDD013 and 154 metres at 0.12% copper and 0.37g/t gold in KRC019.
System may be bigger than expected
The discovery of further mineralised, epithermal quartz veins, some 2 kilometres east at the Mount Leadley Trig prospect provides some indication that this is a large mineralised system.
Recent rock chip sampling at Trig returned highly anomalous gold geochemistry with up to 1.27 g/t gold.
Emmerson can earn up to 80% in Kadungle
Emmerson owns a 12-month option over the Kadungle project, which requires a minimum spend during this period of $100,000.
Emmerson can earn up to 80% of the Kadungle project under an option and joint venture with Aurelia Metals (ASX:AMI) through spending $0.5 million over a five year period.
Kadungle sits to the east of Emmerson’s large Fifield exploration lease, while to the west is the Rimfire Pacific Mining NL (ASX:RIM) Sopressa gold-silver discovery.
Analysis
Emmerson’s strategy for its New South Wales projects is to follow a similar model to what has led to success at its recently producing Northern Territory gold operations.
The company will focus on focus on near term high-value from epithermal gold-silver within large porphyry copper-gold systems.
The recent aeromagnetic survey and drilling are highly encouraging in terms of defining large scale alteration and mineralisation at Kadungle.
The Kadungle project sits to the east of the company’s large Fifield exploration lease and to the west of Rimfire Pacific Mining’s (ASX:RIM) Sopresa discovery (7.9 million ounces silver and 125,000 ounces gold).
Emmerson believes that these tenements are highly prospective for both gold and copper, as are its four other New South Wales projects at Wellington, Parkes,Temora/Sebastopol and Kiola.
It is envisaged that Emmerson will seek suitable joint venture partners on some New South Wales project.
Emmerson shares are up over 45% this past month, currently priced at $0.125.