(MENAFN- ProactiveInvestors)
() has earned a 51% interest in the highly prospective Marymia Project which borders () Doolgunna project area which is home to the DeGrussa Copper-Gold Mine.
It is also 40 kilometres east of ' (ASX:NST) Plutonic Gold Mine which has produced five million ounces of gold to date.
Marymia covers more than 20 kilometres of the prospective Jenkin Fault which is considered the key controlling structure of the copper-gold mineralisation at DeGrussa.
Drilling at Marymia has previously delineated a zone of extensive base metal anomalism along the Jenkin Fault structure.
moved to 51% ownership after meeting the terms under the Heads of Agreement with (ASX:RIE) to spend $1 million on exploration before April 2016.
Benjamin Bell managing director commented:
“The company is pleased to have reached this milestone of earning 51% of the Marymia Project within the first year.
"We believe this project continues to demonstrate significant potential to host a significant mineral deposit and as such the company is committed to maintaining our exploration activities across this promising project area.”
Anomalous copper
Anomalous copper has previously been reported along the parallel Goodin Fault / Rooney’s Syncline region in southwest of project area.
Follow-up drilling recently completed by the company over this historic base metal anomaly intersected low level copper mineralisation including 2 metres at 0.13% copper from 131 metres down hole.
This was in close proximity to the interpreted fault structure.
From this interval also returned were slightly elevated levels including 8 metres at 0.03g/t gold from 129 metres and 3 metres at 1.1g/t silver.
Next steps
Further analysis of the results from this initial drill hole at Marymia is required including confirmation that the hole intersected an interpreted bedrock-hosted electromagnetic (EM) conductor before the company can determine the overall base metal prospectivity of this target area.
The final assay results and geophysical data from the recently completed reverse circulation drilling are currently pending.
The company said that it is sufficiently encouraged by the exploration results received from Marymia to date and that it has notified of its intention to raise its majority stake in this project to 80% by spending a further $2 million on exploration over the next three years.
Analysis
Now there is multi-commodity potential at Marymia as targets were identified across Marymia during 2014. A conductor recently identified beneath nickel oxide intersection of 22 metres at 0.58% nickel.
With EM conductors detected under lead+zinc+copper oxide mineralisation along Jenkin Fault there is significant potential.
Marymia covers 20 kilometres of Jenkin Fault associated with DeGrussa copper–gold ore bodies.
Jenkin Fault is key controlling structure of DeGrussa mineralisation. Of note Sandfire recently entered JVs on the ground between DeGrussa and the Marymia Project; in fact it doubled its strategic footprint in this region over the past year.
Repetitions of DeGrussa are possible. Sandfire’s share price rose from $0.04 to $0.70 on announcement of the DeGrussa discovery.
So the prize is significant if can thread the needle at Marymia.
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