(MENAFN - ProactiveInvestors)
’s () first diamond hole at the Iron Blow deposit within its Hayes Creek Project in the Northern Territory has intersected two thick zones of massive sulphides.
Iron Blow was previously mined in the 1980s producing 35000 tonnes at 7.6 grams per tonne gold and 328g/t silver.
Recently the company released a JORC 2012 Inferred Resource Estimate containing 200000 ounces of gold 10 million ounces of silver and 125000 tonnes of zinc at potentially mineable grades. This is amenable to open pit mining methods.
Hole IBDH023 was drilled to a depth of 365.8 metres and intersected an upper 49.6 metre zone of massive sulphides from 156.5 metres and an underlying 38.6 metre zone of massive sulphides from 220.1 metres.
Visual inspection of core indicates the massive sulphide intercepts are consistent with core from previous diamond drill hole IBDH007.
This had previously recorded 20.3 metres at 5.89g/t gold 481.6g/t silver 13.92% zinc 3.1% lead and 0.61% copper from 193 metres.
Core is being logged cut and sent for assay with results expected shortly.
The company will also carry out a downhole EM survey to potentially identify additional massive sulphide zones.
A second hole IBDH024 has commenced with the aim of testing the section 50 metres north of IBDH023 and will be drilled to a depth of about 375 metres.
Managing director James Fox said: “It is very pleasing to see in our first hole extensive downhole massive sulphide mineralisation in thicker zones than defined by previous drilling.
“We look forward to seeing the assay results shortly. Structural interpretation re-logging of the existing core and surface and downhole EM surveys will all assist in targeting new areas of mineralisation at Iron Blow.
“QEMSCAN test work has also commenced which will allow us to construct and customise a flotation program to maximise payable metals into marketable products.”
IBDH023 was drilled to a depth of 365.8 metres and was targeting the central zone of mineralisation at the Iron Blow resource.
The hole intersected typical Mount Bonnie Formation siltstones and mudstones with a thick upper zone of massive sulphides of approximately 49.6 metres from 156.5 metres downhole.
This is underlain by a unit of silicious siltstone containing disseminated sulphides with quartz veins pyrite and a small amount of arsenopyrite.
A second lower zone of massive sulphides of approximately 38.6 metres was intersected from 220.1 metres downhole.
Below this zone quartz veined and brecciated siltstones and mudstones with appreciable amounts of disseminated and stringer sulphides were intersected.
The true thickness of the massive sulphides is estimated to be approximately 65% of the downhole thickness this will be confirmed by structural interpretation.
Downhole surveys show that the hole remained on or very close to the planned path and tested the massive sulphides at the planned pierce point.
Phoenix has commenced a second hole to test for any extensions of the mineralisation intersected in IBDH015.
Like hole IBDH023 IBDH024 will also test the system to a sufficient depth to enable downhole EM to probe for possible extensions beyond the known depths of mineralisation.
Due to the onset of wet weather the planned drilling of two holes at Mount Bonnie will be deferred until the New Year along with surface and downhole EM surveys.
Hayes Creek Project
In August 2014 Phoenix acquired the 14 leases (containing Iron Blow and Mount Bonnie deposits) that make up the Hayes Creek Project from Corp (TSE:CRK).
Today's intersection of massive sulphide zones in just its first hole at Iron Blow validates the decision by to acquire the Hayes Creek Project in the Northern Territory.
Assays will be eagerly awaited in the next fortnight with a second hole also under way.
Both holes are designed to test continuity of existing mineralisation and positive results will likely increase both tonnes and grade of the existing resource
What sets Hayes Creek Project aside is that it already includes high grade base and precious metals deposits on granted mining leases while being strategically located near roads rail gas and high-voltage power and the towns of Darwin and Katherine.
In addition the company is earning in to substantial exploration tenure in the Pine Creek region where by using modern airborne geophysics and ground based exploration there is potential for additional base metals deposits in a region that historically has focussed on gold exploration and mining.
Besides the pending assays from the first two holes at Iron Blow the company plans to drill two holes at Mount Bonnie in 2015 after the wet season.
At the project no surface or downhole EM has been conducted which the company will look to run next year.
Metallurgical test work has also commenced in order to further de-risk the project.
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