Exploration aimed primarily for economic buried Menninnie Dam - style base and precious metals mineralisation hosted by Palaeoproterozoic metasedimentary basement has been conducted on a licence located in the Lake Gilles district. The subject...
Exploration aimed primarily for economic buried Menninnie Dam - style base and precious metals mineralisation hosted by Palaeoproterozoic metasedimentary basement has been conducted on a licence located in the Lake Gilles district. The subject area originally consisted of four separate small sub-blocks, the largest of which occupied ground on the south-western side of Lake Gilles that contains the known zinc-prospective Junction Dam prospect. There was also believed to be good potential here to discover IOCG-U type mineralisation associated with the younger Mesoproterozoic Gawler Range Volcanics succession and associated Hiltaba Suite felsic plutons. Following the conduct of an in-depth review of reports about previous exploration activities in the region, grant licensee Southern Gold decided to investigate several regional gravity anomalies with dense source bodies (2.9-3.4 g/cc) which appeared to have a stratigraphic relationship to linear magnetic anomalies. During September-October 2006, infill gravity surveys were performed in three areas on the Eastern Eyre Project tenements, acquiring a total of 2609 new station readings. 1115 of the stations were read in the vicinity of the Jungle Dam prospect, starting at 1 km x 1 km spacing and closing in to 500 m x 500 m spacing. Interpretation of the new gravity data plus existing airborne magnetic data gave some encouragement that Jungle Dam could lie in a similar stratigraphic and structural setting to the nearby Menninnie Dam deposit, with the Hutchison Group BIF strata tightly folded into a broadly anticlinal structure having its axis dipping steeply to the west. However, it was recommended that additional gravity and magnetic data would be required to allow the confident selection of targets for drilling. No field work was carried out by Southern Gold during Year 2 of the subject licence, due to a corporate restructuring and to difficulties experienced with hiring the use of a suitable drill rig. Beginning in December 2007, and continuing on into early 2008, a regional soil geochemical sampling survey was undertaken over the subject licence at 1 km x 1 km sample spacing over the southern and eastern sub-blocks and 500 m x 500 m sample spacing over the Sectus Tank sub-block (for a total of 949 minus 2 mm soil samples), while another 473 such samples were collected over the Jungle Dam prospect at 500 m x 500 m sample spacing. This multi-element survey was designed for trialling the relative efficacy of several new partial leach vs whole rock digestion reagents at disclosing pathfinder element anomalism in the Lake Gilles region, when compared to other companies' earlier MMI survey results. The different digest methods' assay results proved to be equivocal - no bullseye anomalies were detected, although 14 coincident but very subtle elevated trace element groupings were seen. In conjunction with the geochemical survey, mapping of the surface regolith was conducted at 1:50,000 scale to inform the interpretation of the assay results: this showed that the licence sub-blocks are mostly covered by transported sediments that later drilling showed can range from 30 m to >70 m thick. Late in January 2008, detailed infill to the regional 1 km x 1 km gravity coverage at Jungle Dam prospect was acquired using 329 stations read at 250 m x 250 m spacing, these being part of a larger survey contract involving a total of 1127 stations. Follow-up ground magnetic surveys (4 traverses totalling 7.25 line km) were run during February 2008 across gravity highs seen in the detailed Jungle Dam gravity data. Afterwards, during March-April 2008, a semi-detailed gravity survey was acquired over the Sectus Tank sub-block of EL 3479, with 434 stations read on a 500 m x 500 m grid. From modelling of the Jungle Dam basement geophysical features, three promising drill targets were determined named JD1, JD2 and JD3 respectively. Target JD1 displays a complex relationship between the gravity and magnetic data. The gravity data show linear continuity with the gravity responses at the other two targets, but the width of the anomaly pinches inward near its southern end, which could be caused by a NNE trending inferred shear structure. Targets JD2 and JD3 display N-S trending gravity and magnetic features, with the magnetic anomaly located on the western edge of the gravity feature and appearing to arise from BIF strata which dip steeply to the west. Given the proximity of the Hercules iron deposit (Fe in magnetite) to the Jungle Dam prospect and the gravity/magnetic features identified there, the three targets delineated were determined to be prospective for similar mineralisation. During the period May-September 2008, 10 scout inclined RC drillholes were completed at nine sites (because hole JDRC03 had to be terminated prematurely and was redrilled as JDRC04). 7 of the holes were planned to investigate the JD1 gravity/magnetic target, with each hole focussing on selected features of either the geophysics or soil geochemistry. The remaining two holes were targeted to intersect the JD2 target. The JD3 target was not explored at all during this initial drill campaign, which involved 1553 m of inclined RC drilling and 209.4 m of diamond coring, for a total penetration of 1762.4 m. All of the diamond tail coring occurred in one hole, JDDH02, which was intended to test a Hutchison Group zinc anomaly of 0.7% Zn reported from chloritised gneiss and graphitic schist at the bottom of the historical hole JDDH01. Basement at the Jungle Dam prospect was found to be covered by a variety of cover sediments including calcrete, sandy gravels and ferricrete, but predominantly the cover consists of clays. The basement sequence itself is extremely weathered below the interface with the transported cover sediments, the weathering profile across the prospect ranging from ~20 m to 75 m thick. Basement lithologies at Jungle Dam vary from massive to flaggy quartzite, with interbedded calcsilicates, magnetite skarn(?), quartzite, dolomite and dolomitic marble, which in turn overlie a massive, cream to grey dolomitic marble. The sequence has been assumed to be steeply dipping to the west (assumption based on historical data and geophysical interpretation) and trending almost N-S. The sequence represents the basal lithostratigraphic unit of the Hutchison Group metasediments, called the Warrow Quartzite. The prospect area is cross-cut by several graphitic shear zones trending SW-NE (deduced from geophysical modelling and drilling results). They are approximately 1-2 m wide (as seen in drill core), and have formed within extremely brecciated and deformed host lithologies. They contain graphite, magnetite and/or phyllonitic chlorite plus traces of pyrite. Elevated uranium values were recorded from the sheared rock in association with graphite and magnetite, however, no uranium mineralisation of economic concentration was detected. Some iron-rich intercepts (e.g. up to 39.2% Fe from 34-69 m depth in hole JDRC09) were made in several of the RC holes, which it is believed could be due to either ferricrete-cemented transported cover horizons or ferruginous saprolite. Magnetite-rich shears as found by hole JDRC05 are thought to be the primary source of the iron. Hole JDRC06 intersected a minor graphitic shear zone that contained elevated Cu, Ni, Au and Ag (with 496 ppm Ni returned from 55-56 m depth). The only other Ni intersection made was in JDRC05, related to a graphitic schist drilled near the base of the hole. JDRC08 and JDRC09 both intersected elevated Au and Ag, the majority of intercepts being located in the dolomitic marble unit interpreted to be the base of the Warrow Quartzite. During December 2008, exploratory aircore bedrock drilling (14 vertical holes for 1137 m) was undertaken by Southern Uranium to test for hypogene mineralisation beneath soil geochemical anomalies. 11 of the holes were drilled into Target 10, a coincident TL8/Bulk Leach soil anomaly with elevated Pb (13 ppm), Zn (42 ppm), Au (up to 3 ppb) and As (up to 3 ppm). This NE-trending soil anomaly, which measures 1.6 km x 500 m in extent, lies on the edge of a magnetic high and provides lithological and rheological contrasts conducive to mineralisation. The anomaly is further complicated by the intersection of a conspicuous NS-striking structure. The remaining 3 aircore holes (FJDAC022 –JDAC024) were put down 500 m to the north of Target 10 to follow-up earlier zinc mineralised RAB intercepts of up to 14 m @ 220 ppm Zn and 12 m @ 120 ppm Zn. The Southern Uranium aircore drillholes penetrated a bedrock sequence variously consisting of gneiss, quartzite, marble, dolomite, chert, calc-arenite, mica-schist, quartz and dolerite. Alteration mineral types mainly included silica and chlorite, with lesser sulphide and sericite. At the start of the fourth licence year, Southern Uranium performed a review of all of the data it had so far amassed for the EL 3479 ground, both new and historical, and a number of new targets suitable for reconnaissance drilling were identified, based on soil geochemistry and geophysics. Six of these targets were subjected to detailed ground magnetic surveying which was done by consultant AsIs International during July-August 2009 along 100 m spaced traverses, for a total of 12.2 line km. Seven selected targets were addressed by a second campaign of vertical aircore drilling that was completed during September 2009, when 21 holes for 1013 m were drilled to blade refusal at the Jungle Dam prospect, and 5 holes for 99 m were drilled at the Sectus Tank prospect. This drilling proved disappointing, as it failed to locate any significant gold, silver or uranium mineralisation. The holes encountered bedrock consisting of quartz-veined schist, gneiss and quartzite, in place intruded by pegmatites. Alteration observed in the aircore drill cuttings included silica, haematite, and lesser sericite, chlorite and plagioclase saussuritization. The bedrock carries only low-level uranium; a maximum assayed value of 115 ppm U over 3 m was intersected in hole JDAC037, associated with a strongly sheared quartzite occurring at the saprolite/saprock interface. Drilling of 10 holes at Target 13, a 500 m x 500 m gold-in-soil anomaly to 3 ppb Au that is located in the northern sub-block of the licence, also revealed up to 10% chalcedonic quartz veining associated with minor pyrite alteration within quartzite intersected by hole JDAC041. It was concluded by Southern Uranium that the targeted weak surface trace metal anomalism may only to a slight degree reflect the underlying basement geology, with the soil types mapped acting as lithodiscriminators. For example, the elevated copper values seen downhole on Target 1 appear to be broadly coincident with the logged mafic schist. Thus for the Lake Gilles district in general, the predominantly clay-bearing transported soils surveyed are expected to give rise to false geochemical dispersion halos, while the downhole geochemical profiles cannot be used to define a vector towards mineralisation. During the fifth year of EL 3479, Southern Uranium completed a further technical review of all previous exploration work, undertook two phases of follow-up drilling of targets identified in the Jungle Dam prospect area (including evaluating the significant but sporadic Middleback Range type haematite/martite iron mineral intercepts made during the 2008 RC drilling campaign), did some re-assaying of significant iron-mineralised intercepts using XRF, acquired new geophysical data from a 100m line-spaced aeromagnetic/radiometric survey and a detailed ground gravity survey, performed geological mapping and rock chip geochemical sampling, and carried out a short aircore drilling program during November 2010. Details of this busy time of work are summarised below. During March 2010, Daishsat was contracted to acquire a semi-detailed ground gravity survey over the Jungle Dam North and Central magnetically anomalous areas, on a regular 250 m x 500 m grid later infilled to 125 m x 250 m, with the addition of a separate single detailed profile read across the Jungle Dam South area. A total of 325 stations were read. During July 2010, a 100 m flight line-spaced helicopter-borne detailed aeromagnetic survey (combined with radiometrics) was flown by Daishsat across the Jungle Dam North, South, Central and Central West areas, besides extending over parts of the company's adjoining EL 4257 Botenella Gate. During September 2010, Daishsat was contracted to acquire a detailed infill ground gravity survey over the Central-West and South prospect areas at Jungle Dam, with gravity readings taken on two 40 m x 80 m regular grids. A total of 1209 stations were read. Importantly, a total of 34 additional inclined RC holes for a total penetration of 2617 m, and 11 inclined aircore holes for a total penetration of 571 m, were drilled into the Jungle Dam sub-block iron ore occurrences during appraisal campaigns undertaken in March-April 2010 and from November 2010 to January 2011. This drilling provided essential data to be used in preparing a preliminary inferred iron ore resource estimate. The RC delineation drillholes were sited using the outcomes of revised modelling of all of the existing gravity and aeromagnetic data that were combined with more precise positioning magnetic data obtained by several detailed ground magnetometer traverses. The main target was the Jungle Dam Central-West iron ore occurrence. The later aircore drilling program was used to both scope the prospectivity of geophysical targets generated from the detailed surveys in the Jungle Dam South area, and to test the effectiveness and suitability of the aircore/slimline RC rig as a platform for resource drill-out. A total of 11 aircore holes were drilled, all angled at 60 degrees towards the east. Regolith and outcrop mapping was performed over the Jungle Dam Central and Central-West areas. A number of previously un-mapped outcrops of ironstone and other lithologies were mapped and sampled. 75 lag, float and outcrop samples were submitted for mass spectrographic geochemical analysis, with 39 high grade iron-bearing samples subsequently being re-assayed using XRF. A 2-year hiatus in exploration activity ensued after January 2011, due to the need for the SA Government to resolve legislative and administrative issues surrounding the establishment of a joint Parliamentary proclamation of governing powers for managing four local vegetation and environmental conservation parks (e.g. particularly the Sheoak Hill Conservation Park) that lay within the subject exploration licence's application for renewal area. The requested replacement Lake Gilles licence, EL 5109, was eventually granted to Sunthe Uranium on 29/11/2012. From the expiry of the previous EL until the granting of the new EL, the assay results for 37 previously completed RC holes and 9 previously completed aircore holes were received (where in fact 9 of those RC holes were actually drilled and completed after the EL 3479 expiry date: this over-run was treated as an on-going project from that EL), while 1542 retained drill cuttings samples were re-sampled and sent for XRF analysis, several bulk samples of iron ore were sent off for Davis Tube Recovery testwork, the company undertook in-house preliminary wireframing of the geology and assay results, from which it then (unsuccessfully) attempted to make a preliminary resource assessment, and latterly, a major rehabilitation program was completed. The resource assessment work was subsequently handed over by the licensee to specialists AMC Consultants: they concluded that in the current economic climate, there would be only a limited chance of establishing an economic mine at the Jungle Dam iron ore deposit if it was run as a stand-alone operation. The on-ground exploration program was then suspended in about April 2011, with resource assessment work continuing until about July 2011. During the sixth licence year, new work carried out by Investigator Resources included doing detailed soil samping over parts of the Jungle Dam licence sub-block, followed by aircore drilling of targets generated from the soil sampling. In January 2013, 2515 soil samples were collected on 100 m x 100 m grids for partial leach geochemical assaying, to follow up on SNU's earlier 500 m x 500 m soil geochemical survey anomalism. Beginning in June 2013, 30 exploratory aircore holes for 1704 m were drilled, and a rehabilitation report for this drilling phase was submitted to PIRSA in September 2013. Results of this drilling were disappointing. AMC Consultants were engaged by the licensee to provide a more reliable initial resource assessment for the Jungle Dam iron ore deposit based on the broad-spaced drill traverses, drillhole sample geology and mineralogy, and the results of limited Davis-tube recovery tests. Their assessment found that insufficient drilling had been done to allow for making any preliminary resource estimate (non-JORC). Too many unknown factors prevented this. Results from the XRF analyses and DTR analysis indicated that there are too high levels of silica and too low recoveries of magnetite, and that much of the iron may exist as siderite and goethite, rather than as magnetite and haematite. As such, no resource grade-tonnage estimate could be made. It was clear that significant further drilling would be required to progress this aspect of the project any further. It was evident too that some exploratory drilling needed to be done elsewhere on the other three licence sub-blocks, where a number of targets had been recognised, e.g. the Salt Creek area (featured on the cover of the Sunthe Uranium Company Prospectus document in 2007) for finding the source of highly anomalous radioactivity, the Lake Gilles South sub-block, where highly anomalous As, Ag and Au have been detected in soils, and the Sectus Tank sub-block where coincident Au-Cu seemed to be strongly associated with a magnetic feature (possible IOCG?). However, it eventuated that no further work was done on EL 5109 before a decision was made by Investigator Resources early in 2017 to let its tenure lapse. This would allow the company to focus activity instead on its perceived more prospective other ground holdings.