AusQuest Limited (ASX:AQD) has received encouraging assay results from the recently completed diamond drilling at the Hamilton Copper Project in northwest Queensland, which is held under a strategic alliance agreement (SAA) with a South32 subsidiary.
The assays have confirmed the presence of mineralised banded iron formations (BIF) similar to those hosting the Osborne copper-gold deposit (global resource of around 36 million tonnes at 2% copper and 1g/t gold), about 70 kilometres to the north of the project.
The mineralised BIF stratigraphy is associated with two different alteration styles–the first involves multiple pathfinder elements within an envelope of sericite and potassic alteration (HMDD012), and the second one within a thick strongly carbonate-altered sequence, where the BIF stratigraphy is much thicker and pathfinder elements are moderately elevated.
Improved prospects for large-scale copper-gold discovery
AusQuest managing director Graeme Drew said the highly encouraging assay results had significantly improved the prospects for a large-scale copper-gold discovery at Hamilton, confirming the positive indications from the recently completed drilling program.
He said: “We are now looking forward to seeing the results from the down-hole electromagnetic surveys, which should help us to optimise drill targets within both the southern and northern magnetic complexes.
“This work is close to getting started and hopefully it won’t be too long before we have results to report.”
Results
Assays from the drill-hole HMDD012 returned highly anomalous copper (up to 2,000ppm), bismuth (6ppm), molybdenum (to 600ppm), selenium (50ppm), tin (64ppm), tungsten (to 500pp), uranium (to 800ppm), tellurium(8ppm), sulphur (9.0%), lead (235ppm) plus elevated gold (0.46ppm) and light rare earth elements (LREE’s).
Drill-hole HMDD012, which is within the southern magnetic complex, was positioned to test an isolated magnetic target adjacent to an earlier drill-hole which had intersected strong sericite and potassic alteration.
This association of highly anomalous pathfinder elements occurs within the BIF stratigraphic package over a down-hole length of approximately 22 metres from 396 metres down-hole, highlighting the potential for further (stronger) copper mineralisation to be located nearby.
Drill-hole HMDD015, which is the first hole drilled into the northern magnetic complex, tested a coincident magnetic and gravity response.
The company has planned down-hole electromagnetic (DHEM) survey within drill holes HMDD012 and HMDD015 to test for sulphide mineralisation up to 200 metres from each drill-hole.