Blue Rose Copper Project Joint Venture - South Australia
PacMag is currently evaluating the Blue Rose/Olary copper-gold-molybdenum project in South Australia, a joint venture with Giralia Resources NL. The project is located 300 kilometres north-east of Adelaide (Figure 1).
- Figure 1: Olary Project - Location
Oxide Copper Mineralisation
The Blue Rose project consists of a shallow sub-horizontal oxide copper mineralisation zone with previous drill intersections defining two zones of mineralisation over a cumulative strike length of 950 metres (Figure 2). Previous drill intersections starting from 8 metres below surface such as 48 metres @ 1.0% copper and 0.21 g/t gold highlight the potential of the project. Copper oxide mineralisation is open along strike to the east, west and south west and drill testing is currently in progress to define the limits of mineralisation.
Figure 2: Blue Rose Prospect - Significant Results
Oxide Metallurgical Testwork
Sighter metallurgical testwork was conducted at AMMTEC Ltd in Perth under the supervision of Metallurgical Project Consultants Pty Ltd (MPC) on two samples to test the amenability of the oxide ore to acid leaching for copper recovery. The following conclusions were drawn from the oxide metallurgical evaluation program:
- Copper extraction was high from BRMET02 and moderate from BRMET01 ranging from 85% to 58% respectively. In both cases the results indicated amenability of the ore to acid leaching, even though the preliminary mineralogical assessment indicates relatively complex ore mineralogy.
- Copper extraction in a full scale operation would likely be higher than that achieved in the preliminary laboratory tests given that leaching was continuing at test termination.
- The impact of particle size on leach extraction was considered low, suggesting that heap leaching would be a viable process option. Optimisation of crush size will require further evaluation.
Further testwork is required to confirm the metallurgical performance of the ore and optimise the oxide copper extraction process flowsheet. Quantitative mineralogical assessment will assist in directing the testwork towards the most appropriate leaching regime. The next phase of work will aim at identifying the optimum crush size for heap leaching and generate preliminary data required for economic evaluation including acid consumption and amenability to percolation.
Sulphide Copper - Gold Mineralisation
Drilling of three diamond drill holes totalling 747 metres tested for copper-gold sulphide mineralisation beneath the Blue Rose oxide copper gold deposit where previous RC hole BRRC030 intersected a sulphide intercept of 48 metres @ 0.82% copper, 1.01 g/t gold from 84 metres (Figure 3).
New hole BRDD003 drilled 100 metres to the west of hole BRRC030 intersected the interpreted extensions to this sulphide mineralisation. Copper, gold and molybdenum mineralisation in BRDD003 is associated with a skarn altered rock sequence over a 127.3 metre interval from 94.4 metres to 221.7 metres downhole depth.
Figure 3: Blue Rose Oxide 3D Image of mineralisation and drilling
with location of sulphide intercepts
Better intersections from within this 127.3 metre zone include; 10.0 metres @ 0.64% copper, 0.25 g/t gold and 13.8 metres @ 0.1% molybdenum (0.88% copper equivalent) and 14.5 metres @ 0.6% copper and 0.12 g/t gold. The hole was abandoned prematurely due to hole collapse in altered copper rich (>0.1% copper) rocks. Sulphide mineralisation remains open and untested to the west and south beneath ore grade copper oxide mineralisation over an open ended strike length of > 600 metres, which has defined by shallow aircore drilling.
New holes BRDD001 and 002 were drilled as diamond tails to existing RC holes BRRC035 and BRRC029 respectively with the specific aim of obtaining orientated drill core to establish the dip of mineralisation and to allow better targeting of future drilling. New orientated drill core from BRDD001 and 002 shows that although the holes were correctly orientated to intersect the monzonite porphyry dykes that are the interpreted source of copper, gold and molybdenum mineralisation, for the most part, these holes intersected a non-prospective quartzite sequence of rocks that dips parallel to the hole due to folding of the rock package. The final portion of hole BDDD001 did reach the prospective skarn sequence with the last 24 m of hole averaging 0.2% copper. Future drilling will now be able to account for the folding and the orientation of the previously unknown barren rock sequence.
Olary JV - Regional Prospects
A number of regional prospects are being assessed in the Olary JV Project Area, including the Faugh-a-Ballagh Iron Oxide Copper Gold Target, Ameroo Zinc Target and the Netley Hill Porphyry Copper Prospect (Figure 4).
Figure 4: Olary JV Prospect Locations
Faugh-a-Ballagh Iron Oxide Copper - Gold Prospect
Re-modelling and reinterpretation of the geological and geophysical signatures of the Faugh-a-Ballagh Prospect indicate the potential for the discovery of an iron-oxide-copper-gold (IOCG) deposit beneath shallow historical copper workings in magnetite-hematite breccias within granitic rocks, calc-silicate rocks, paragneiss and orthogneiss of the Proterozoic Curnamona Group.
PacMag Metals Limited as managers of the Blue Rose-Olary Joint Venture were successful in obtaining endorsement and co-funding of future contract drilling costs by the Department of Primary Industries and Resources of South Australia to test the Faugh-a-Ballagh target.
The project contains an IOCG style target (Faugh-a-Ballagh) with characteristics similar to the Gawler-Curnamona (~1590Ma) and Eastern Mt Isa Block (~1510Ma) IOCG deposits such as those being mined/developed at Olympic Dam, Prominent Hill, Ernest Henry and Osborne.
A discrete 500m long 10,000nT ovoid magnetic anomaly in the south western portion of exploration licence E2939 is modelled as a sub-vertical body 130-150m in width with a susceptibility of 1.00 SI units, estimated to represent 12-20% magnetite lying directly beneath historical copper-gold workings at Faugh-a-Ballagh (Figures 5 and 6). Previous rock chip sampling at Faugh-a-Ballagh returned strong geochemistry with copper to 3.6%, gold to 0.61g/t Au associated with uranium anomalism.
Mapping indicates two contrasting styles of copper-gold mineralisation at Faugh-a-Ballagh:
- Mineralisation associated with a stratabound sequence of laminated ironstones and calc-albitite rocks, quartz vein, and mica schist. Notably this mineralisation contains only minor magnetite and is coincident with a shear zone. Gold and copper mineralisation within this stratabound unit are associated with quartz veining.
- Epigenetic quartz-magnetite rocks and ironstones which are highly discordant to metamorphic banding and cleavage, show brecciation and a substantial halo of intense magnetite veining within massive orthogneiss and quartz-albite rocks. This copper-gold mineralisation is associated with brittle faults and calc-silicate rocks are absent.
Figure 5: Isometric Diagram of Proposed holes at Faugh-a-Ballagh
with Magnetic Model shown as Blue Polygon, beneath magnetic image
Figure 6: Image of TMI with Bouguer Gravity contours (0.1mGal)
Faugh-a-Ballagh Target
30 June 2010 - Payment of Schemes Consideration
21 June 2010 - Amendment to Notice of Exchange Rate Relating to Scheme
21 June 2010 - Exchange Rate for Payment to Scheme Participants