A group of contiguous exploration licences centred ~100 km south-west of Coober Pedy are being explored principally for epithermal and Challenger-style gold mineralisation hosted by covered Archaean basement rocks, as well as for any economic base...
A group of contiguous exploration licences centred ~100 km south-west of Coober Pedy are being explored principally for epithermal and Challenger-style gold mineralisation hosted by covered Archaean basement rocks, as well as for any economic base metal, uranium or iron ore occurrences. Previous explorers in the Commonwealth Hill region had done shallow drilling which had disclosed significant banded iron formation (BIF) magnetite resources at several prospects, often with associated elevated gold. In March-April 2009, during the first year of the subject joint venture project arranged between licensee parent Apollo Minerals and farminee Western Plains Gold (WPG), where the latter is acting as exploration manager, detailed ground gravity and ground magnetic survey data were acquired over certain aeromagnetic anomalies of interest. At the Wirrida Complex anomaly on EL 3821, 328 new gravity stations were read on a 400 m x 50 m grid, accompanied by magnetometer readings made at 200 m x 10 m spacing, for 19.1 line km. At the Ibis anomaly on EL 3765, 132 new gravity stations were read on a 200 m x 50 m grid, accompanied by magnetometer readings made at 200 m x 10 m spacing, for 13.6 line km. This work identified discrete lesser circular and linear magnetic anomalies, some of which are semi-coincident with gravity highs - these latter geophysical features were thought to perhaps indicate denser, possible haematite iron ore targets. Interpretation of the Wirrida grid magnetic survey results by WPG’s geophysicist suggested the presence of relatively thick magnetite-rich horizons, probably BIF. When aeromagnetic data were used to extrapolate further away from the ground magnetic survey coverage, it became clear that these horizons could in fact extend over a 7-8 km combined strike length along the western side of the Wirrida Complex. Planned ground gravity and magnetic data acquisition along two traverses crossing the Sequoia East aeromagnetic anomaly was not carried out because permission for contractor access into the Woomera Prohibited Area (WPA) Restricted Zone could not be obtained from the Commonwealth Department of Defence. No field work was done on the other project ELs 3678, 3728, 3780 (and 4096) at this time. EL 4096 was surrendered in full during August 2009. In July 2009, during the second year of the project, WPG conducted additional ground gravity and ground magnetic surveys within ELs 3765 and 3821, for a total 48 line km coverage [no station count available] over eight intense aeromagnetic high anomalies located near the historic Sequoia and Saint Andrews prospects. Following the interpretation of all of the new and available past geophysical data, drill targets for iron ore were defined at magnetic anomalies Apollo 4, Apollo 5 and Apollo 7. Further infill surveying was planned to decide exactly which sites would be tested with RC percussion drilling. Tenure of EL 3678 was allowed to lapse in December 2009, and likewise EL 3780 was later deemed to not have been renewed in May 2010, after WPG's subsequent withdrawal of its licence renewal application. WPG withdrew from the Commonwealth Hill farm-in agreement during December 2009, and Apollo Minerals Limited resumed operational management of the project licences. No field work was done during the third project year. WPG prepared a submission to the Justice Hawke review of the protocols surrounding how third party access to the WPA is administered, and then made further application for issue of a new Deed of Access that would give the Commonwealth's future permission for entry onto its remaining three project licences. An application was also made to the SA Government for a grant of PACE Initiative Year 7 collaborative drilling project subsidy funding, to assist with the planned iron ore exploratory drilling. During the fourth project year, the Commonwealth of Australia granted a Deed of Access (Exploration) to Southern Exploration on 29/9/2011, providing access into the WPA which includes the company's ELs 3728, 3765 and 3821. Shortly thereafter, work access inspection surveys and granting of Aboriginal Heritage Clearance for these three licences by the Antakarinja Matu Yankunytjatjara Aboriginal Corporation occurred. The related ensuing field work programmes comprised: - acquisition of ground gravity and ground magnetic surveys in November-December 2011 on EL 3765 at the Ibis, Sequoia and Saint Andrews prospects, for coverage totals of 316.8 and 327.4 line km respectively. The new gravity data were read from 6959 stations on 100 m x 200 m grids, and were infilled in part to 50 m x 100 m station spacings; - a moving loop ground-based transient EM survey was trialled as an orientation survey on EL 3765 at the Saint Andrews prospect and on EL 3821 the Wirrida prospect; - mineral resource definition infill RC drilling was performed on EL 3765 at the Sequoia prospect (13 inclined holes put in at 75-100 m intervals along east-west drill traverses spaced 125 m apart, for a total penetration of 1829 m). A single inclined exploratory hole was drilled to 125 m at AON prospect. On EL 3821 at the Sequoia East prospect, 5 appraisal inclined RC holes were drilled for 246 m, although all of these holes were abandoned before attaining target depths due to experiencing drilling difficulties in broken and waterlogged ground (only 2 of the holes reached >80 m hole depths). - a JORC code - compliant, indicated and inferred mineral resource for BIF iron ore at the Sequoia prospect was estimated, of 72 Mt @ 25.9% Fe (using a 15% Fe cut-off grade), which includes a higher grade mineralised core of 5.4 Mt @ 38.9% Fe (using a 37% Fe cut-off). The resource area covers a 1.2 km strike length, has an average width of 150 m and is interpreted to lie between surface outcrop and a lower limit defined at an average vertical depth of 175 m. Its geological model was built from a 22 - hole database that included one cored hole, combining Southern Exploration's drilling data with those obtained by PIRSA's drilling done in 1996-1997. Inspection of the new infill gravity data acquired over the 1.6 mGal Sequoia residual gravity high showed that it broadly maps out the north-northeast trending gneiss and BIF strata of the Archaean Mulgathing Complex. Also observed in the data are several northwest to north-northwest trending linear features that appeared to be associated with late stage brittle faulting. 3D inversion modelling of these data showed a very strong response associated with the Sequoia prospect, as expected, while other dense bodies were observed to lie near surface and at depth along strike from Sequoia to the south. These anomalies are much smaller in amplitude and strike length, and it was surmised that they may represent gneiss-hosted BIF units that are either deeper lying or contain less iron than Sequoia. Potent 2D forward modelling was performed on ten lines of the 2011 gravity data acquired over Sequoia. It indicated that there are two parallel dense units. The western unit appears to be shallower and have less depth and strike extent than the eastern unit. A west-northwest trending dextral fault is interpreted to have offset the BIF units in the north. One last observation from the Sequoia potential field data made by Southern Geoscience Consultants was that anomaly sources mapped the magnetic data models become increasingly less depth extensive to the south, whereas the gravity data models maintain their depth extent. It was suggested that this may indicate possible haematite alteration of the BIF to the south. During the fifth project year (2012-2013), a considerable number of field activities were undertaken. Broad scale geological mapping was carried out in conjunction with surface calcrete and rock chip geochemical sampling. 533 calcrete samples were collected across grids at the Acacia, Acacia East and Bundi prospects, on 200 m x 200 m grid spacings at Acacia and Bundi, and 100 m X 100 m at Acacia East. 39 outcrop samples of meta-igneous, metasedimentary and ironstone rocks were submitted for whole rock analysis and assaying of standard 38 trace element suite, as well as for petrographic descriptions that might assist the company to gain a better understanding of various geological units it had identified across its tenements. To aid the regional mapping, samples of these units were provided to DSD for radiometric age dating under PACE 2020 Geochronology Project PG03-11. Previously unmapped Hiltaba age granitic rocks were thus identified [for the geochronological data and interpretation see RB 2015/3]. In conjunction with the CSIRO, a hydrochemistry survey was performed on groundwater samples taken from 21 water bores on Commonwealth Hill Station. The water analysis results were plotted as geochemical contour maps for individual anions and cations, with separate maps drawn to show salinity, pH and Eh values. An east-west trend of elevated assay values was noted in multiple elements, possibly reflecting effects of fault control. Three detailed ground gravity surveys were completed at variable line spacings, down to 50 m x 50 m, on EL 5073 at the Ibis, Acacia, Byron, Mustering and Acacia East prospects; on EL 5074 at the Sequoia and St Andrews prospects; and on EL 4960 at the Bundi, Wirrida Central and Wirrida prospects. The Ibis survey read in June 2012 comprised 2254 stations; the Commonwealth Hill II survey read in September 2012 comprised 4628 stations spread over five prospects; and the Commonwealth Hill III survey read in January 2013 comprised 2305 stations over two prospects. During June-July 2012, a 40 line km ground magnetic survey was acquired over an 800 m x 1 km grid at St Andrews to target iron geochemical anomalies previously identified by Minotaur Exploration. Other ground magnetic surveying was also done at this time over a 2 km x 6.5 km grid at Ibis, for 248 line km, and over a 1 km x 1.3 km grid at Sequoia, for 26 line km. Moving loop transient electromagnetic (MLTEM) ground surveying was trialled in June 2012 at St Andrews and Wirrida central, and encouraging results obtained from the initial orientation arrays led Apollo Minerals to extend use of this technique to eight other prospects including Acacia, Acacia East, Bundi, Sequoia East and Wirrida West, for a total coverage of 197.3 line km and 2089 stations. At Acacia East, the MLTEM detected a bedrock EM anomaly measuring 1200 m x 800 m, that extends down to 1500 m. Its strong 1000 S conductivity was believed could imply massive sulphide mineralisation. This anomaly coincides with a discrete demagnetised zone that transects older magnetostratigraphy adjacent to the Coorabbie Fault, and the pairing was thought to represent a probable late stage intrusion or its contact aureole of epithermal alteration. During March-April 2013, 3 inclined exploratory fully cored HQ/NQ diamond drillholes for 1286 m were completed at Acacia East. The drilling encountered felsic, intermediate and mafic rock units containing intervals of disseminated stringer and massive sulphides consisting primarily of pyrrhotite and pyrite, that contain low grade copper, silver, nickel and cobalt mineralisation. Hole ACEDD001 intersected a zone of massive sulphide mineralisation containing 18 m @ 0.4 g/t Ag from 258 m, with further downhole, 8 m @ 710 ppm Cu, 0.01 g/t Au, 0.9 g/t Ag, 273 ppm Ni and 109 ppm Co from 327 m. Visible bornite is present in the drill core of hole ACEDD002 over an 8 m interval from 24 m downhole, returning a core assay result of 240 ppm Cu. The deepest hole, ACEDD003, intersected 128 m @ 105 ppm Ni and 20 ppm Co between 380 m and 508 m, which includes an interval of 8 m @ 345 ppm Cu, 95 ppm Ni and 48 ppm Co between 480-488 m. This hole was terminated at a total depth of 582.7 m within a coarse grained and sodic altered anorthosite unit. 15 drill core samples were described petrographically for their igneous and metamorphic features. The presence of pervasive hydrothermal alteration, magnetite destruction and sulphide mineralisation is indicative that this initial round of drilling has intersected part of a large-scale mineral system involving iron metasomatism which may fit within the IOCG-U exploration conceptual model being followed by Apollo Minerals at its Titan Project. A JORC Code - compliant Indicated and Inferred Mineral Resource for the Sequoia iron ore prospect was estimated, amounting to 72 Mt @ 25.9% Fe (using 15% Fe cut-off), comprised of 19.4 Mt at 27.7% Fe for the indicated resource category, and 52.6 Mt at 25.3% Fe for the inferred resource category. A scoping study was published in November 2013 that demonstrated support for the development of a medium scale open cut mine at Sequoia, stating that it is capable of producing, over a 17 year mine life, 42 Mt of high-quality, coarse grind iron concentrate averaging 68.8% Fe. It is forecast that 2.5 Mtpa of saleable concentrate can be produced and transported by rail to export shipping facilities at Port Pirie in the Spencer Gulf. Direct start-up capital for the mining project is estimated at US$333M.