Chase Mining Corporation Ltd (ASX:CML) subsidiary Red Fox Resources (ASX:FXR) Pty Ltd has been awarded two Round 6 Collaborative Exploration Initiative (CEI) grants from the Queensland Government.
The grants will fund drilling at the Eveleigh Zinc Project in the Georgetown district of Northeast Queensland, and at the Ernest Henry West (EHW) Copper-Gold Project in the Cloncurry district of Northwest Queensland.
Eveleigh project drilling
The company will channel $200,000 towards six diamond drill holes at Eveleigh, the purpose of which will be to assess the potential of Broken Hill-type (BHT) mineralisation, which has not yet been confirmed at this project.
Eveleigh contains a lens of zinc mineralisation that was drilled in the 1970s, drilling historical intersections including 24.4 metres at 2.5% zinc.
The grant will fund Red Fox to drill six holes:
- two into the main zinc lens;
- two into the interpreted Copper, lead and zinc central lode; and
- two into the interpreted lead and silver lode.
Ernest Henry West drilling
Grant funds of $120,000 will go towards three reverse circulation drill holes at Ernest Henry West to test the high priority target areas in the Cloncurry district.
A similar pattern between the EHW area and the E1 deposit area have emerged as both show a pattern of complex folded iron rich sediments curtailed on the northwestern side by major structures.
The three drill holes will target a complex magnetic anomaly that has been previously explored – 3D geophysical modelling by Red Fox showed this hole may not have been drilled deep enough to intersect the anomalous zone.
Drilling at both projects is expected to be carried out in early to mid-2022.
Written by Duncan Bailey