(MENAFN - ProactiveInvestors - Australia) Augur Resources (ASX: AUK) joint venture partner Goodrich Resources (ASX: GRX) has intersected copper-gold mineralisation in its first drill hole at the Yeoval deposit in New South Wales, with results indicating the potential for a significant copper-gold orebody.
The hole was drilled to extend the eastern of two mineralised zones, delivering an intercept of 44.5 metres at 0.46% copper, 0.5 grams per tonne (g/t) gold, including 6.1 metres at 1.28% copper, 1.33g/t gold and 19.1 metres at 0.6% copper and 0.66g/t gold.
Yeoval is strategically located in the same region that hosts Rio Tinto's (ASX: RIO) 2.26 millon gold ounce and 1.57 million copper tonne Northparkes Mine, Newcrest Mining's (ASX: NCM) 39.4 million gold ounce and 6.96 million copper tonne Cadia Valley Mine, and Golden Cross Resources' (ASX: GCR) 1.69 million gold ounce and 0.66 million copper tonne Copper Hill Mine.
Goodrich is encouraged by the results of the first hole. Although some of the goals of the hole were thwarted by the dolerite dyke, the hole has provided a valuable insight into the Yeoval mineralisation that may provide a vector to a high grade copper-gold orebody.
The known Yeoval deposit comprises two main near-surface zones of bornite-chalcopyrite (copper sulphide) mineralisation.
Initial drilling in 1972 produced best intercepts of 42.7 metres at 0.93% copper and 18 metres at 0.8g/t gold.
Drilling in 2008 by Augur produced best intercepts of 90 metres at 0.9% copper, 0.14g/t gold and 50 metres at 0.54% copper and 0.48g/t gold.
This drilling enabled Augur to define an Inferred JORC Resource of 12.9 million tonnes at 0.38% copper and 0.14g/t gold.
There is still plenty of exploration upside, however, with the mineralisation remaining open on at least three sides " east, south and to depth " with additional drilling expected to increase the Resource.
In 2009, encouraging grades of 16 metres at 0.72% copper and 0.84g/t gold were obtained on the southeast margin of the deposit. The intercept was bornite-rich, suggesting this area may be a focus for mineralisation.
Regional exploration potential
Several regional exploration opportunities are evident within the Yeoval exploration licence.
A deep-seeking induced polarisation survey was completed in 2011 using the offset pole-dipole array configuration.
The pattern of the induced polarisation responses suggests that the Yeoval resource is part of a larger mineralised system.
The strongest of the individual responses is located 500 metres to the southeast of the known mineralisation, while the largest response is located 850 metres to the northeast.
The former has been targeted by two holes, one of which intersected interesting but uneconomic veinlets of bornite-chalcopyrite with individual 1 metre assays of 1.79% copper and 0.8g/t gold and 0.87% copper and 1.35g/t gold.
Further induced polarisation surveys may refine the position of the response so that future drilling can better target the focus of the mineralisation.
The upside is that the veining is bornite-rich and carries attractive grades of gold. The other anomalies revealed by the survey remain undrilled.
Joint venture structure
Augur holds a 25% interest in the Yeoval project while Goodrich holds a 58.57% interest in unlisted explorer Zodiac Resources, which has a 75% interest in the project.
The Yeoval project covers around 147 square kilometres and has potential for porphyry copper-gold and molybdenum mineralisation, epithermal gold and silver mineralisation and magnetite rich copper-gold mineralisation.
The project area hosts numerous near surface copper /- gold occurrences and several small historical mines, within altered Naringla Granodiorite of the Yeoval complex.
Prior exploration has targeted shallow outcropping mineralisation. Significant potential exists in areas of shallow alluvial cover.