Meteoric Resources NL (ASX:MEI) made considerable progress at its Palm Springs Project in Western Australia and Juruena Project in Brazil during the December quarter as it focuses on scoping studies aimed at outlining gold development opportunities.
Impressive cyanide leach recoveries have been returned from metallurgical test-work at Palm Springs with promising gold assays received from the Butchers Creek deposit.
Results from both programs provide the company with confidence as it advances a scoping study looking at open pit and underground development scenarios with results due later this quarter.
At Juruena, drilling results also provide encouragement for copper porphyry potential while a scoping study is underway assessing the gold development opportunity at Dona Maria, Crentes and Querosene deposits with results also expected this quarter.
Well-funded
At the end of the quarter, Meteoric had cash and liquid assets of more than A$4 million leaving it well-funded to continue to advance these projects in WA and Brazil.
This follows a strongly supported placement to sophisticated and professional investors that raised A$1.7 million and a fully underwritten share purchase plan (SPP).
This closed oversubscribed on December 8, with total applications amounting to $1,088,100 received.
The Butchers Creek deposit at Palm Springs presents strong prospects for early production.
Palm Springs tests
Metallurgical test-work out on drilled core from the sulphide zone at this deposit achieved gold dissolution of 96.4% after only 24 hours leach time and potential to improve on this result.
Tests show that ore from Butchers Creek is amenable to a low-cost processing route incorporating a standard CIL cyanide leach plant.
The results were achieved without the added complication of capital and operating cost imposed by either gravity recovery or flotation.
Further gold zones
Assays from drilling at Butchers Creek have added further zones of gold mineralisation and enhance the anticline hinge zone target. Results include:
- 29 metres at 2.0 g/t gold from 286 metres including 2 metres at 5.9 g/t from 291 metres and, in turn, including 2 metres at 8.8 g/t from 312 metres;
- 9 metres at 1.4 g/t from 311 metres;
- 57 metres at 1.6 g/t from 223 metres including 18 metres at 3.1 g/t from 234 metres; and
- 32 metres at 1.4 g/t from 266 metres including 4 metres at 6.0 g/t from 266 metres.
These results further confirmed the thick zones of gold mineralisation in the hinge of the Butchers Creek Anticline cored by a high-grade zone that backs up previous results.
Meteoric’s 2021 drilling season was carefully planned to improve confidence in the high-grade portions of the resource of 5.2 million tonnes at 1.9 g/t gold for 319,000 ounces comprising 3.3 million tonnes at 1.7 g/t in the inferred category and 1.9 million tonnes at 2.2 g/t in the indicated category.
Support scoping study
The drill results along with the test results continue the strong progress made by Meteoric at Palm Springs and support the scoping study that is progressing.
The following studies form the basis of the scoping study:
- Open pit optimisations to develop ore immediately beneath the historic pit;
- Underground development scenarios to exploit deepest portions of the resource;
- Additional metallurgical studies on 2021 drill core; and
- Assessing process route designs.
Outcomes from the scoping study will drive the company’s Halls Creek strategy in 2022.
The company is also looking to further explore beyond Butchers Creek in 2022 with additional new prospective areas receiving Heritage clearance.
This regional exploration program will test for Butchers Creek extensions and repeats on several targets across the company’s extensive tenement position.
Developing gold resources
At Juruena, Meteoric plans to forge ahead with development plans for exploiting the gold resources in conjunction with conducting the process for finding a project partner on the copper-gold porphyry exploration.
With the first part of this strategy, the company is working on a scoping study for the development of the Dona Maria, Querosene and Crentes gold deposits with Brazilian mining consultancy, GE 21.
Meteoric anticipates reporting the results of this study later this quarter.
The company has also started the application process for mining licences over the key areas proposed for open-pit and underground mining.
The global gold resource for Juruena stands at 1.9 million tonnes at 6.3 g/t for 390,000 ounces with more than 40% of the resource classified in the indicated category underpinning an exciting development opportunity.
Juruena porphyry potential
During the December quarter, the company announced results from a deep diamond drill program to test the porphyry gold-copper potential of a giant IP chargeability anomaly detected at Juruena.
Three holes for 2,421 metres were completed with a large copper-gold enriched magmatic-hydrothermal system intercepted centred on a series of intrusive, intermediate porphyries.
Porphyry copper potential is best exemplified in JUDD043 with 640 metres at 206 ppm copper within a thick zone of propylitic alteration centred on a cluster of intermediate porphyry intrusives.
Although economic porphyry copper-gold mineralisation is yet to be discovered, the drilling confirmed the presence of a significant porphyry system.
The recognition of the porphyry system is underpinned by the diagnostic veining and alteration zones observed in the deep drilling.
Seeking porphyry partner
As exploration for Tier 1 porphyry copper deposits such as the Juruena target is high-cost and high-risk exploration, Meteoric is seeking a major partner to advance this opportunity.
The Alta Floresta Belt is the focus of many major mining and exploration companies carrying out belt-wide geophysical surveys to identify porphyry copper exploration targets.