No exploration was undertaken on EL 3277 during the 2008-2009 final year of its term. An application for licence renewal was submitted and a subsequent licence, EL 4401, was granted to Hillgrove Resources on 17/12/2009. During the first year of...
No exploration was undertaken on EL 3277 during the 2008-2009 final year of its term. An application for licence renewal was submitted and a subsequent licence, EL 4401, was granted to Hillgrove Resources on 17/12/2009. During the first year of EL 4401, exploration activity comprised the drilling of 14 RC holes at Wheal Fortune, Green Zone South, Emily Star and Macfarlane, for a total penetration of 1296 m. Most of this brownfields drilling occurred in an area immediately south of the Kanmantoo mine [this mine now being located on ML 6345] where mining was recommenced in late 2010. The main intent was to test prospective strata along strike from the mine, at Emily Star South and Wheal Fortune, where historic workings and later surface geochemical sampling had shown that copper mineralisation is present which required evaluation. Eleven holes were drilled at Emily Star South prospect. The best results were obtained in the north of the prospect, closest to Back Callington Road. Hole KTRC757 encountered 17 m @ 0.95% Cu and 0.35 g/t Au over the depth interval 48 to 65 m, before barren biotite schist was entered at 84 m depth. Other good results came in holes sited a slight distance away to the north and south, e.g. in KTRC759 (5 m @ 0.36% Cu and 2.95 g/t Au) and KTRC756 (8 m @ 0.37% Cu and 0.13 g/t Au). Further drilling was seen as warranted to follow up these intercepts down dip and along strike. Further along strike towards the south at Wheal Fortune, three holes were drilled to test the probable lode mineralisation remaining underneath historic workings. Holes KTRC743 and KTRC744 were drilled a short distance south of the old mine openings, and each encountered approximately 1 m @ 0.5% Cu; however, the first-drilled hole, KTRC742, sited more towards the north, yielded exciting results of 5 m @ 2.50% Cu and 0.8 g/t Au. Additional drilling is now a priority to test this lode along strike and down dip. During 2011, exploration at Kanmantoo primarily targeted ground located immediately south and east of the known Kanmantoo copper mineralised zones. Work undertaken comprised : • a compilation and review of all relevant historical data; • the reprocessing of Hillgrove's detailed aeromagnetic (helimag) data from 2005/2006; • acquisition of a dipole-dipole IP survey over part of the Kanmantoo Mining Lease, ML 6345, with eastern and southern extensions into EL 4401. Parts of twelve 200 m spaced east-west survey lines fell within EL 4401, with readings taken at 50 m intervals along the lines for a total of 165 stations within the licence; and • planning for drilling 4 RC holes to test combined magnetic and IP targets. The initial processing of the 2005-2006 aeromagnetic survey data had been completed by Jim Hanneson of Adelaide Mining Geophysics. The raw data contained many gaps where the helicopter had been required to divert around towns, farm buildings and the like. As part of that initial processing, these gaps were mostly removed by smoothing the data. The 2011 data review suggested to Hillgrove that an association existed between Kanmantoo style copper mineralisation and high intensity magnetic anomalies, however, because of the smoothing of the data and the imaging colour scheme used originally, the detail necessary to confirm this association had been removed. In early 2011, Southern Geoscience Consultants in Perth, WA were contracted to reprocess the entire detailed aeromagnetic survey, but in their treatment they were requested not smooth the data, meaning the detail was preserved. They provided Hillgrove with a number of images utilising different filters to highlight certain features. From inspection of these, it was evident that the reprocessing had been highly successful, confirming the association of Kanmantoo style copper mineralisation with aeromagnetic highs such as seen at Emily Star, and hence immediately identifying potential brownfields extensions or repeats to the mineralisation that to date were essentially untested. In September 2011, Planetary Geophysics from Toowoomba, QLD completed a dipole-dipole IP/resistivity geophysical survey totalling 14 line km over inferred buried strike extensions to the known Kanmantoo copper mineralisation, taking readings along traverses sited within the Kanmantoo Mining Lease and in adjacent prospective areas to the south and east. Previously, Hillgrove had acquired some lines of gradient array IP survey data in the near-mine surrounds which had suggested that IP could be used as a targeting tool for Kanmantoo style copper mineralisation. However, that particular IP technique then did not provide Hillgrove with any depth-to-top or dip information for resulting chargeability anomalies, and so its use had essentially been discontinued. The new DDIP survey comprised 13 east-west traverse lines spaced 200 m apart, with stations read every 50 m along the lines. The entire survey covered 14 line km and recorded data at 293 stations, of which 165 stations were located on EL 4401. As part of the processing, Planetary Geophysics converted the 2005 gradient array IP survey data into the time domain, and consolidated it with the 2011 dipole-dipole data into a single dataset. They then attempted to interpret the merged dataset and resulting 3D inversion model, highlighting 10 target zones requiring follow up geophysics and/or drilling. Five of the target zones lie wholly or partly within EL 4401, and these are planned for follow-up during 2012. During the 2012 reporting year, 4 inclined RC holes for 783 m were drilled to test targets located south of the Kanmantoo mine which had been noted in both the 2005 gradient array IP survey data and the 2011 dipole-dipole data. No mineralisation was encountered, and the source of the IP anomalism was not explained. Hillgrove continued to seek to gain a stronger understanding of the geology and structures that influence mineralisation throughout the region. To this end, it supported two university Honours student thesis research projects which addressed aspects of this knowledge gap. A study was undertaken to investigate the structural features and stress history of the Kanmantoo deposit, along with geochemically investigating these structural features to further the understanding of mineral genesis in the Kanmantoo region. Pit wall mapping was completed, along with categorising each different mineralised vein into one of several categories. It was found that the Kanmantoo mine, during retrograde metamorphism, underwent a gradual clockwise stress field rotation. Thus, it was suggested that north-south striking structures and veins exhibit features of a higher temperature – earlier timed mineralising event that had been copper rich, while those structures and veins which are orientated NE-SW exhibit features denoting lower temperatures of mineralisation and are richer in bismuth and gold. The possibility of strike-slip faults, developed perpendicular to the later stage structures which had been thought to be the major conduits for Cu-rich fluids forming the copper mineralisation exhibited by the mine itself, it was suggested leads to the possibility of there being another, completely different mineralisation setting existing on the exploration licence. A second study was undertaken to understand the localised occurrences of bismuth mineralisation at the Kanmantoo deposit. All aspects of it were investigated, starting with mineral speciation to differentiate between native bismuth and bismuth chalcogenides, and ending with relating its genesis to particular local or regional controls. Paragenetically, it was found using chlorite geothermometry that bismuth is related to later stage iron rich metasomatism, it having been precipitated within chlorite - associated quartz and magnetite veins, and so the bismuth is not intimately associated with copper itself. Rather, the precipitation of bismuth is thought to be related to gold genesis, forming at around 410 degrees Celsius, as opposed to copper mineralisation which predominately forms as chalcopyrite around 470 degrees Celsius. SEM examination of vein material found that bismuth predominately occurs as minute (5-10 microns but often in larger ~50 micron) aggregates of native bismuth. To a lesser extent, it occurs as a sulphide, a selenide or telluride, and in a few cases a combination of these. The source of the bismuth - containing mineralising fluid was thought to be either meteoric water that had undergone wall rock interactions with granites underlying the exploration licence, or was hydrothermal fluid derived from the crystallising granite itself. During 2013, Hillgrove Resources temporarily suspended exploration of EL 4401 because the ramping up of Kanmantoo Project resumption of mining operations was proving more difficult than anticipated, and because of the other urgent work imposed on the company by a change in approval conditions for the proposed Tailings Storage Facility, which required redrafting of content within the Mining Lease Proposal. A comprehensive regional prospectivity report was prepared by a consultant, using existing data and research papers, to guide ongoing exploration. During 2014, no work was done. A new Exploration Manager was employed by the company to progress evaluation of untested targets on the licence area. During licence Year 16, the first year of renewed EL 5628, Hillgrove Resources resumed exploration activities on the tenement, performing extensive geophysical work and aircore drilling. A regional detailed helicopter-borne electromagnetic/magnetic survey (heliTEM) was flown over 87 square km of the company’s prospective Adelaide Hills EL and ML holdings in April-May 2015. The majority of the east-west flight lines were 200 m apart, although some flight lines were 400 m or 100 m apart. Of the total 520 line km survey coverage, 458.6 line km were flown within EL 5628, including 28.6 line km flown over the Kanmantoo mining lease (ML 6345). Survey data processing and interpretation were being handled by a consultant, and results were not available at the time of reporting. It was expected that the survey would provide conductive targets along strike from the Kanmantoo mine, and in other places on the licence. A detailed ground gravity survey was carried out in December 2014 and January 2015 over the Kanmantoo ML and the area immediately surrounding it within EL 5628. A total of 856 stations were read on a regular 50 m x 100 m grid, with infill readings made at 25 m x 50 m. The survey data identified strong positive trends north of the mapped main Kanmantoo orebody. The most anomalous “Auberts to Aberfoyle Trend” was tested by aircore drilling. 34 inclined shallow aircore holes for 1990 m were drilled to test targets generated by the new gravity data and existing electrical survey data. Drilling was split into two zones, one east of the mine at Mulawa (23 holes, MAC001 - 023) and the other south of the mine at Auberts (11 holes, AAC001 - 011). Holes were drilled to a maximum depth of 82 m to test inferred shallow sedimentary-exhalative mineralised targets and to map the subsurface geology. Several copper-anomalous intervals were intersected south of the ML at sites which coincided with the gravity trend. Some of the interesting intercepts, made within strata which appeared to be equivalent to the main orebody host rocks, included: in hole AAC001, 7 m @ 0.8% Cu, 0.3 g/t Au and 2.5 g/t Ag from 55 m; in hole AA007, 36 m @ 0.2% Pb, 0.4% Zn and 2.6 g/t Ag from 15 m; and in hole MAC014, 1 m @ 0.3% Cu, 0.1 g/t Au and 4 g/t Ag from 15 m. Hillgrove began trial re-assaying of historical drill pulps obtained from holes put in near the Kanmantoo mine, particularly to gather more subsurface geochemical data for Zn, Pb, Ag and Au. The purpose of this trial was to try to raise the perceived economic value of known occurrences of near-surface base metal mineralisation. The investigation was ongoing at the time of reporting. During licence Year 17, no exploration work was done, so no technical report was submitted to DSD. During 2017, Hillgrove resumed exploration activities on EL 5628, with a focus on regional exploration targets along with underground extensions at Kanmantoo. Soil geochemical surveys (1342 readings) and rock chip sampling (41 samples) were undertaken at Kanappa and Mt Rhine, a ground magnetic survey at Kanappa, spectral scanning of 2 diamond holes from Kanmantoo and Kanappa using Hylogger, and a deep RC drilling program for underground extensions of the Kanmantoo Mine. Eight RC holes (KTRC1011-1018) for 1617 m were completed for depth extensions to the Kanmantoo mineralisation to progress underground exploration activities. These were drilled from within the mine lease. Significant drilling results include: KTRC1014 from 232 m to 261 m (EOH) 29 m @ 0.42% Cu, 1.0g/t Ag, including 5 m @ 1.17% Cu, 2.6g/t Ag, and KTRC1016 from 106 m to 134 m 28 m @ 1.22% Cu, 3.2g/t Ag including 7 m @ 2.28% Cu, 5.7g/t Ag and from 154 m to 168 m 14 m @ 2.1% Cu, 6.2g/t Ag. The results of the spectral Hylogger scanning identified a significant K-feldspar alteration proximal to the mineralisation that not been previously recognised. The soil XRF geochemical survey identified a 4.8 km long soil copper anomaly at Kanappa, with concurrent rock chip samples returning results of 34.8% Cu and 4g/t Au. The round magnetic survey identified a coincident large magnetic high with the copper anomaly. At Mt Rhine, a 1 km long soil anomaly returned rock chip sample results of 49.8g/t Au and 13.1% Cu. Two honours projects have been funded through the University of Adelaide to investigate the association of magmatic alteration with mineralisation.