Chase Mining Corporation Ltd (ASX:CML) is trading higher as it welcomes the start of drilling by Red Fox Resources Pty Ltd at the Gipsy Creek Copper-Gold Project in the Cloncurry district of northwest Queensland.
Shares have jumped more than 26% to 2.4 cents on the news from Gipsy Creek, which is 100%-owned by Red Fox with Chase holding 40% of that private company.
In July 2020 Red Fox was awarded a Collaborative Exploration Initiative (CEI) grant from the Queensland Government to fund drilling at Gipsy Creek.
The grant provides one-off funding of $190,000 for the drilling of three diamond drill holes, with no co-contribution required.
Drilling is expected to take about three weeks to complete.
Conductive pipes revealed in MT survey
Gipsy Creek contains a major conductivity anomaly defined by a magneto-tellurics (MT) survey completed in 2017 by the Queensland Government.
This survey identified a series of conductive 'pipes' that showed very clear correlation with the known copper-gold deposits at the Ernest Henry and E1 mines, operated by Glencore.
A third major conductivity pipe was indicated by the MT survey, along the Cloncurry lineament (an interpreted major structural zone) within Red Fox’s Gipsy Creek EPM 26872.
Drilling aims to test an interpreted Eloise-style target, ie a non-magnetic, sulphide dominant, mineralised shear zone.
Eloise is an underground mine, 40 kilometres southeast of Cloncurry with high-grade chalcopyrite-pyrrhotite mineralisation and an initial resource of 3.2 million tonnes at 5.5% copper, 1.4 g/t gold and 16 g/t silver.
Additional mineralisation has recently been discovered in the area by Minotaur Exploration Ltd (ASX:MEP).