Argonaut Resources NL (ASX:ARE) drilling at its Murdie Project in South Australia has intersected a highly prospective iron oxide copper-gold (IOCG) alteration system.
The intensity of alteration from the first hole of the current drill program to target IOCG mineralisation defined by large gravity anomalies has indicated that the hole is 300-1,000 metres from possible copper mineralisation.
Mobilisation to the second drill target, Smith Dam 2 is now in progress.
Confirmation of IOCG geology
Argonaut is pleased by the presence of an IOCG alteration system in the basement rocks of the West Lake Torrens gravity anomaly.
Argonaut chief executive officer Lindsay Owler said: “This was the first-ever drill hole into the West Lake Torrens gravity anomaly, and we have now established that the basement rocks host a prospective, hematite-rich IOCG system.
“This is very encouraging to the team.
“It is the perfect time in the commodities cycle to be drilling for large, high-grade copper deposits.”
The critical prerequisites to the discovery of an IOCG deposit have been confirmed, and include:
- The same brecciated, hematite alteration system as Olympic Dam, Carrapateena and Oak Dam;
- Preservation, rather than erosion, of the IOCG system; and
- Intersection at around the correct level within the system that possible economic IOCG mineralisation would be expected to occur.
Gravity surveying and drilling underway
Gravity surveying and progressive modelling and re-modelling of high-density drilling targets is proceeding.
Argionaut's gravity acquisition crew is working south of the West Lake Torrens anomaly and directly east of the Carrapateena mine within EL 5937.
The drill hole reported was the first hole of an initial 4-5 hole program and it targeted a residual gravity anomaly called Smith Dam 1.
Basement core from the drill hole will soon be transported off-site for cutting and analysis.
The drilling rig is being moved to a protective platform that is positioned over a residual gravity target called Smith Dam 2 – the site of the second drill hole - where drilling is being conducted 24/7 in two daily shifts.
Lake Torrens exploration licences.
Drilling targets
The Murdie exploration licences cover two large-scale, regional gravity anomalies – West Lake Torrens and Murdie – which represent locations with significant volumes of high-density rock that could contain economic IOCG deposits.
Efforts are being focused on the West Lake Torrens anomaly where the company has identified seven excellent drilling targets.
Argonaut is drilling Smith Dam 1 and Smith Dam 2 first (near the shoreline of Lake Torrens) with the other targets Crystal Dam 1 to 3 (offshore) to be prioritised on the basis of results.