Chase Mining Corporation Ltd (ASX:CML)’s investee Red Fox Resources (ASX:FXR) Pty Limited has completed its geophysical modelling and review at its Ernest Henry West Project in the Cloncurry district of northwest Queensland.
This review has identified high-priority target areas in the Ernest Henry West EPM 26010.
The geophysical modelling exercise and structural interpretation indicate a direct comparison can be made between the Ernest Henry West area and the E1 Group of Deposits, mined by Glencore at Ernest Henry Operations.
Red Fox has identified drill targets at two prospects in the area, which it proposes to drill when the area becomes accessible in 2022.
Chase Mining has a 40% stake in Red Fox.
Direct comparison
Direct comparisons can be made between the Ernest Henry West area and the E1 deposits.
These deposits have some similarities to the IOCG-style deposits of the Selwyn District and also of recent discoveries such as Jericho and Artemis in the Soldiers Cap area.
The E1 Group has been partly mined by Glencore Ernest Henry operations and is reported as containing 48.1 million tonnes at 0.72% copper and 0.21 g/t gold.
Both Ernest Henry West and the E1 deposits show comparable magnetic responses.
Next steps
Red Fox has designed a series of drill holes to effectively test the two prospect areas:
➢ FC8N target - mineralisation associated with moderate magnetite alteration with elevated copper and gold values in past drilling within an area of complexly faulted and folded metavolcanics and metasediments including probable black shales – proposed holes P2201, P2202, P2203.
➢ FC9N target - Structural associated sulphide dominant targets adjacent to enhanced magnetic bodies – proposed holes P2204 and P2205.
Red Fox proposes to drill these targets when the area becomes accessible in 2022.