Astro Resources NL (ASX:ARO) welcomes the drilling progress made by target Knox Resources Pty Ltd, a subsidiary of Greenvale Mining Ltd, at the Georgina Basin IOCG Project in the Northern Territory.
Alteration observed in drill core from the second diamond hole, including visible copper mineral chalcopyrite, indicates that the hole has intersected a hydrothermal system.
Encouraging observations
This hole has been completed at the Leichhardt target to 600.8 metres and drilled through the Georgina Basin limestone to a depth of 245.3 metres.
Basement metasedimentary rocks were intersected from 271.6 metres to the end-of-hole with the alteration and veining observed indicating a hydrothermal system.
Greenvale has entered into a conditional agreement to sell 80% of the issued capital of Knox Resources to Astro.
The second diamond hole, which was drilled to test the Leichhardt West Target, follows the encouraging first hole completed at the Banks target.
Priority targets
This work is part of a significantly expanded drill program announced at the start of the year covering multiple targets across the company’s central tenement, EL32295.
Geophysical inversion modelling of previously acquired magnetic and gravity geophysical data covering part of EL32295, together with interpretation of recently received assay results from initial drilling at the Twin Peak targets last year, led to a re-prioritisation of the central tenements, particularly targets Leichhardt and Banks.
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 (important for fluid flow).
Tenement EL32295 is also about 9.5 kilometres along strike from Middle Island Ltd’s Crosswinds prospect, where significant copper oxide mineralisation has been observed at surface.
Copper potential
Greenvale Mining CEO Matthew Healy said: “We are very encouraged by what we have seen in the first two holes drilled as part of our expanded 2022 exploration field season in the East Tennant region.
“The drill hole at Leichhardt, like the first one at Banks, has provided further indications of a broad hydrothermal system, and the presence of visible chalcopyrite in the basement rocks is indicative of the potential for 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."
Drilling paused
The drill rig has now demobilised from the site after completing the two initial holes with drilling to be paused until the completion of the divestment of Greenvale’s interest in the Georgina Basin Project to Astro Resources.