(MENAFN- ProactiveInvestors - Australia) Apollo Minerals (ASX: AON) has begun an initial reconnaissance drilling program at its Acacia East Base Metals Prospect in South Australia which displays the key elements of a large scale iron oxide-copper-gold-uranium (IOCGU) system.
The purpose of the program is to test for potentially economic mineralisation within 350 metres of surface near the core of the 4 kilometre long iron IOCGU target.
Acacia East has previously revealed key geophysical characteristics common to high quality IOCGU deposits in South Australia, including BHP Billiton's (ASX: BHP) Olympic Dam Deposit.
The deposit has demonstrated a strong gravity response and firm indications of magnetite alteration alongside a major regional fault.
Isolated, near surface, ultra-high density domains identified from gravity surveys are supportive of potential supergene enrichment and a possible high grade cap.
The prospect covers a lateral area of around 4.2 kilometres by 1.6 kilometres and can be seen in the gravity survey data to extend down for over 2,200 metres.
Strong electromagnetic conductors identified near-surface and also deep below are indicative of massive sulphides.
Preliminary surface rock chip samples returned highly anomalous grades across a wide range of metals and pathfinder elements suggestive of IOCGU mineralisation.
This included 45.4% iron, 0.31% copper, 99 grams per tonne (g/t) silver, 0.11% lead, 500 parts per million cobalt, 160 parts per million arsenic, 110 parts per million bismuth and 31 parts per million selenium.
A recently completed surface calcrete sampling program also returned grades of up to 1.6g/t platinum and 5 parts per million uranim.
The drilling program includes three diamond cored holes, each to about 350 metres vertical depth.
All holes will be inclined to allow for down-hole electromagnetic surveying, designed to test for "at-depth" conductors, potentially indicative of massive sulphide mineralisation and likely to be obscured from the recent surface electromagnetic surveys by the strong GS1 EM conductor already identified.
Holes one and three will be positioned to test the source of the GS1 EM conductor, while hole two is planned to test the source of the ultra-dense rocks inferred to exist immediately alongside the up-dip extension of the conductor.
The drilling program is slated for completion by the end of April 2013 with final results expected for all holes by early June.Â
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