Astro Resources NL (ASX:ARO) welcomes the strong start by Greenvale Mining Ltd to its 2022 field program at Georgina Basin IOCG Project in the Northern Territory with the first diamond hole of the campaign intersecting encouraging alteration.
This hole at Banks target was completed to a depth of 550 metres and forms part of an expanded drill program announced at the start of 2022 covering multiple targets across Greenvale’s central tenement, EL32295, including Banks and Leichhardt.
Sale agreement
The Georgina Basin Project is held by Knox Resources Pty Ltd, a wholly-owned subsidiary of Greenvale, which has entered into a conditional agreement to sell 80% of the issued capital of Knox to Astro Resources.
Hole KNXBA001RDD was drilled through Georgina Basin limestone to a depth of 239.5 metres with encouraging IOCG-style alteration of basement rocks encountered from 290.6 metres downhole.
Trace chalcopyrite (copper mineral) was observed at about 303 metres and 497 metres down-hole.
Important milestone
Successful completion of the first hole at Banks marks an important milestone for Greenvale’s ongoing exploration efforts at Georgina Basin.
Greenvale is encouraged by the initial interpretations and observations from the hole with core being processed and cut ahead of laboratory assay.
Early interpretations of the alteration and mineralogy revealed in the hole indicate that a hydrothermal system may have been intersected.
IOCG hunt “very much on track”
Greenvale Mining CEO Matthew Healy said: “All of the indications from this hole suggest we are in a prospective environment for IOCG deposit formation, and the presence of trace chalcopyrite in the hole indicates the potential for more substantial copper mineralisation to occur in the vicinity.
“Evidence of a large hydrothermal system, together with the other geophysical and geological indicators shows that our hunt for a large IOCG deposit in this new mineral frontier is very much on track.”
The central tenement grouping was selected due to the presence of extensive coincident magnetic and gravity anomalism prospective for IOCG mineralisation, as well as its proximity to regional deep-seated faults, which are important for fluid flow.
In prospective area
Additionally, the central tenement EL32295 is about 9.5 kilometres along strike from Middle Island Ltd’s Crosswinds prospect, where copper oxide mineralisation has been observed at surface.
Middle Island reported spot pXRF readings of between 24.8% and 76.2% copper at Crosswinds, validated by composite chip sampling assays of 130 metres at 0.76% copper.
Early geological interpretations suggest that the Leichhardt and Banks targets have several favourable IOCG mineral system features including the interpreted presence of Alroy.
Leichhardt drilling
With the completion of the first Banks hole, drilling has started at Leichhardt West, targeting a remnant magnetic high adjacent to an elevated gravity anomaly.
Two holes will be drilled testing the western and eastern boundaries of the identified anomalous zone.
Interpretations of the magnetic characteristics suggest that Leichhardt could be a hematite-dominant IOCG target.
The deeper of the two holes at Leichhardt will be co-funded by the Northern Territory Geological Survey under Round 15 of the Geophysics and Drilling Collaborations Program as a part of Resourcing the Territory Initiative.