Microsoft Word - 12512anrep04.doc · Web view2021. 3. 17. · First pass RAB drilling (2000 m) across untested gold in soil anomalies. First pass RAB drilling (1000 m) across Bottletree

EPM 12512 – DIDO DAM

ANNUAL REPORT

For the period ending 17th July 2004

AuthorM. Glasson

September 2004

1:250,000 Sheet:Einasleigh (SE 55-9)

1:100,000 Sheets:Conjuboy (7860), Einasleigh (7760)

GLENGARRY RESOURCES LIMITEDABN 40 009 468 099

SUMMARY

EPM 12512 (Dido Dam) is held 100% by Glengarry Resources Ltd and forms part of the Greenvale project. It is located about 200 km west of Townsville in north Queensland and 40 km west of the town of Greenvale. The Greenvale area is considered prospective for volcanogenic massive sulphides as well as porphyry related disseminated Au mineralisation (Kidston style) and high grade gold mesothermal vein style mineralisation.

During the reporting period Glengarry carried out a project review and exploration target assessment of the whole Greenvale project. The review has confirmed that it is located in an under-explored, metal rich area with potential to host a variety of economic gold and base metal deposits. A target assessment has outlined 10 broad target areas warranting follow up exploration.

ii

TABLE OF CONTENTS

1.0 INTRODUCTION........................................................................................1

2.0 TENEMENTS.............................................................................................1

3.0 GEOLOGY AND MINERALIZATION.........................................................2

4.0 PREVIOUS EXPLORATION......................................................................2

5.0 WORK CARRIED OUT DURING THE REPORTING PERIOD..................3

LIST OF APPENDICES

Appendix 1 Greenvale Project - Status Review and Recommendations by D Richards

Appendix 2 Greenvale Project - Regional Target Assessment by D Richards

LIST OF TABLES

No. Title

1 Block Identification Map Townsville

LIST OF FIGURES

No. Title

1 Greenvale Project – Location Plan

2 Greenvale Project – Simplified Regional Geology

3 EPM 12512 Sub Block Diagram

1

Greenvale

Townsville

Charters Towers

100 km

EPM 12512 Dido Dam: Annual Report for the period ending 17th July 2004.

1.0 INTRODUCTION

Exploration Permit for Minerals (EPM) 12512 is located about 200 km west of Townsville in north Queensland and 40 km west of the town of Greenvale (Figures 1 and 2). The area is considered prospective for volcanogenic massive sulphides as well as porphyry related disseminated Au mineralisation (Kidston style) and high grade Au mesothermal vein style mineralisation.

Figure 1 Location Plan Greenvale Project

2.0 TENEMENT

EPM 12512 is owned 100% by Glengarry Resources Limited. The tenement comprising 128 sub-blocks (Table 1 & Figure 3) was originally granted for 5 years on 18th July 2003.

Table 1 - Block Identification Map Townsville Block Sub-blocks

2454 dejknopstuxyz2455 cdejknopqrstuvwxyz2456 afl2457 hmmoprstuvwxyz2458 fghlmqr2526 abcdefghjklmnopqrstuvwxyz2527 abcdefghjlmnoqrsvwxyz2528 ehjkmnoprstuvwxyz2529 abfglmqrvw

Number of sub-blocks = 128

49 sub blocks (shown above in bold) were surrendered in July 2004.

DDaa

((

((

(

(

((

CORAL SEA((.( CCCAAAIIIRRRRNNNNSSSS

(((

((

(( GGRREEEENNVVAALLEEPPRROOJJEECCTT(

GGRREEEENNVVAALLEEPPRROOJJEECCTT(( .(

TTTOWNNNSSSVVVIIILILLLLLEE

----2200(°°° MMTTISSISAA( (

(( (

(( ((( .(

(( ( ( (

( (( ( ( ( (

( .(.( ( (

((

( ( .QUEENSLAND (( ( ( (

( (( ((

AUSTRALIA( ( (( ( ( BBRRI((S (SISBBAAN

((((NEE

( ( (( .( .(

( (((

((

(((

. ((

( ( ((---3300°°

( (

(((((

(

KidstonKidston (Au)(Au)

$$

intreeintree u,u, Au)Au)

BalcoomaBalcooma (Cu,(Cu, Pb,Pb, Zn)Zn)

EPMEPM 1090710907(Glengarry)(Glengarry)

HallsHalls RewardReward (Cu,(Cu, Au)Au) $$

$$-19º

EPMEPM 1251112511WatchWatch HillHill

EPMEPM 1239912399BurgesBurges

x $BottletreeBottletree

Prospect\Prospect\GreenvaleGreenvale (Ni,(Ni, Co)Co)

---111999ººº

EPMEPM 1212312123 (BHP(BHP JV)JV)

(Cu,(Cu, Au)Au)

GG AnomalyAnomaly

NEW EPM APPLICATIONS GLENGARRY

$$ (Au)(Au)

-19º30' ----

REGIONAL LOCATION PLAN LEGENDRegional Faults

Tertiary Laterite Cover

Paleozoic Sediments

Paleozoic Granites

Precambrian Metamorphics, Mafics and Ultramafics

Magnetic Anomaly

Granted Tenements

G L E N G A R R Y

Application Boundary Greenvale Project Simplified Regional Geology

0 5 10 20km

Map: GLEN0215File: GLEN0215.worPath: \\TerraServer\Data\GIS\Glengarry\Workspaces\

DATUM: AGD66PROJECTION: Geodetic

Geologist: T. Alston Drafted A. Scott

Date: September 2002Figure 2

BigBig

1

-$$

11

11

144

1

$

$$

Sub-blocks retained

Sub-blocks relinquished

TOWNSVILLE BIM, SE55

Glengarry Resources Limited

GREENVALE PROJECT

DIDO DAM, EPM 12512

SCALE APPROXIMATELY 1:250,000

July 2004

Figure 3

QN205-MAP.xls; PH04242: 9/09/2004

144 deg 30' 144 deg 40'

2381 2382 2383 2384 2385 2386

18 deg 50'

d e c d e a

j k j k f f g h

2453 2454 p 2455 o p l 2456 2457 l m 2458

s t u q r s t u

x y z v y z

c d e d e

h j k j

2525 252

6 o p 2527 o 2528 2529 2530

19 deg 00'

2597 2598 2599 2600 2601 2602

2669 2670 2671 2672 2673 2674

19 deg 10'


3.0 GEOLOGY AND MINERALIZATION

The Dido Hill EPM is located on the eastern margin of the Georgetown craton and close to the western margin of the Clarke River Basin. The area is mainly under Cainozoic and Tertiary cover material and is characterised by a circular morphology pattern. A north west trending gravity edge and structural corridor is interpreted to pass through the EPM – this structure also divides the Clarke River Basin (south) and Camel Creek/Bundock Basins (north) to the east. The structure passes through the large Kidston porphyry Au deposit to the north west and at Twelve Mile is close to documented major north east trending faults, such as the Balcooma Mylonite Zone and the Burdekin Fault. Significant mineralisation appears to be controlled by these north east faults including the Balcooma VMS Cu-Pb- Zn-Ag deposit and the Greenvale laterite Ni-Co deposit.

A strong circular anomaly was recognised, from the AGSO regional magnetics, and postulated to be an ideal target for iron oxide related porphyry Cu-Au mineralisation (eg. Olympic Dam) due to the size of the anomaly and the dilatant structural setting. Purchase of the CEC aeromagnetic/radiometric data (400m) allowed some interpretation of the magnetics - highs of up to 6700 nT have been revealed from the recent, more detailed (200m) Government programs.

The geology comprises Siluro-Ordovician metavolcanics and metasediments of the Paddy’s Creek Group/Eland Volcanics/Lugarno Metamorphics to the north east and the Devonian Dido Tonalite to the north and north west. There are also some mapped ultramafics to the east. The age of the Dido Tonalite is similar to the age of the Millchester Tonalite (428-431 million years) - the host to the high grade mesothermal gold at Charters Towers. Both of these granitoids are magnetic. The Cambro-Ordovician volcanic tuffs and sediments of the Eland Volcanics Group are considered to be similar to the Balcooma Volcanics that host the VMS mineralisation.

The mapped structural fabric consists of east-west/west south west, north-south/north north west and north east structures. Cu-Au mineralisation occurs to the north east at the contact zone of the Dido Granodiorite and in shear zones within metamorphics at the Bottletree area, whilst quartz vein style Au mineralisation has been documented further to the north at Steam Engine.

4.0 PREVIOUS EXPLORATION

No systematic work programs have been carried out previously by exploration companies in the vicinity of the EPM. A summary of the sporadic work carried out in the region is outlined below:

NORANDA AUSTRALIA LTD, ATP 3063M, 1981-82Some minor stream sediment sampling was undertaken. Elevated values (ppm) of 583 Cu and 429 Zn were recorded from rock chips at Bottletree located to the south of Dido Hill.

CARPENTARIA EXPLORATION COMPANY, ATP 3895M, 1985Work carried out consisted of stream sediment sampling and regional mapping.

2

DDaa

((

((

(

(

((

CORAL SEA((.( CCCAAAIIIRRRRNNNNSSSS

(((

((

(( GGRREEEENNVVAALLEEPPRROOJJEECCTT(

GGRREEEENNVVAALLEEPPRROOJJEECCTT(( .(

TTTOWNNNSSSVVVIIILILLLLLEE

----2200(°°° MMTTISSISAA( (

(( (

(( ((( .(

(( ( ( (

( (( ( ( ( (

( .(.( ( (

((

( ( .QUEENSLAND (( ( ( (

( (( ((

AUSTRALIA( ( (( ( ( BBRRI((S (SISBBAAN

((((NEE

( ( (( .( .(

( (((

((

(((

. ((

( ( ((---3300°°

( (

(((((

(

KidstonKidston (Au)(Au)

$$

intreeintree u,u, Au)Au)

BalcoomaBalcooma (Cu,(Cu, Pb,Pb, Zn)Zn)

EPMEPM 1090710907(Glengarry)(Glengarry)

HallsHalls RewardReward (Cu,(Cu, Au)Au) $$

$$-19º

EPMEPM 1251112511WatchWatch HillHill

EPMEPM 1239912399BurgesBurges

x $BottletreeBottletree

Prospect\Prospect\GreenvaleGreenvale (Ni,(Ni, Co)Co)

---111999ººº

EPMEPM 1212312123 (BHP(BHP JV)JV)

(Cu,(Cu, Au)Au)

GG AnomalyAnomaly

NEW EPM APPLICATIONS GLENGARRY

$$ (Au)(Au)

-19º30' ----

REGIONAL LOCATION PLAN LEGENDRegional Faults

Tertiary Laterite Cover

Paleozoic Sediments

Paleozoic Granites

Precambrian Metamorphics, Mafics and Ultramafics

Magnetic Anomaly

Granted Tenements

G L E N G A R R Y

Application Boundary Greenvale Project Simplified Regional Geology

0 5 10 20km

Map: GLEN0215File: GLEN0215.worPath: \\TerraServer\Data\GIS\Glengarry\Workspaces\

DATUM: AGD66PROJECTION: Geodetic

Geologist: T. Alston Drafted A. Scott

Date: September 2002Figure 2

BigBig

1

-$$

11

11

144

1

$

$$

3


CARPENTARIA, ATP 4002M, 1986-88A regional aeromagnetic/radiometric survey was carried out at 400m line spacings.

NORANDA, ATP 4293, 1988-89No work was recorded on the EPM, but stream sediment and rock chip sampling was carried out at nearby Bottletree, centred on AMG 262500E 7888500N. The stream sediments returned up to 14.7 ppb Au and 379 Cu, 1000 Pb and 5 Ag, whilst the rock chips returned up to 7.9 g/t Au and 0.365% Cu. This area is part of Glengarry’s TAG Prospect which is part of EPM 12399.

HOMESTAKE GOLD OF AUSTRALIA LTD, EPM 8818, 1989-98Homestake carried out some stream sediment sampling (BLEG - Au, Cu, Ag). Anomalous results were returned from the Bottletree and TAG Prospects i.e.:

- at 260000E 7888500N, 21.6 ppb Au was returned from a stream draining the margins of Twelve Mile. Elevated Cu, Zn and Ba values from rhyolite/quartz breccia was reported from follow up rock chip sampling

- at 262500E 7888600N, 117 ppb Au was returned from stream sediment sampling (this prospect is now known as the TAG) but no follow up was reported.

Homestake farmed out the property to Pancontinental Mining Ltd from 1993-95. Pancontinental did not carry out any field work on Burges/Watch Hill although they did re-interpret the CEC aeromagnetics. They carried out an extensive exploration program at the Bottletree prospect, centred on 263000E 7889000N, comprising mapping, soil sampling and shallow drilling (max. depth 63m). The drilling intersected up to 50m @ 0.4% Cu, although the east-west drill traverses appear to be oblique to south south east trends of mineralisation.

5.0 WORK CARRIED OUT DURING THE REPORTING PERIOD

Work carried out during the reporting period involved a project review and subsequent target assessment of Glengarrys entire Greenvale Project by D Richards. The project comprises a total of 9 granted EPMs (including EPM 12512) and EPM applications covering an area of approx. 2,300 km2.

A review of the regional technical data for the Greenvale Project area was carried to delineate and prioritise target areas warranting further exploration. An interpretation of regional aeromagnetic data was completed to define prospective structural and geological settings. Geological, geochemical and drilling data generated by previous explorers (including Glengarry) was then assessed to determine whether further work is warranted.

The review of the Greenvale Project (Appendix 1) has confirmed that it is located in an under-explored, metal rich area with potential to host a variety of economic gold and base metal deposits. A target assessment (Appendix 2) has outlined 10 target areas warranting follow up exploration.

APPENDIX 1

Greenvale ProjectStatus Review and Recommendations

Appendix 1: Greenvale Project – Status Review and

1

Greenvale Project – Status Review and Recommendations

by

David Richards

Summary and Conclusions

A review of the Greenvale Project has confirmed that it is located in an under-explored, metal rich area with potential to host a variety of economic gold and base metal deposits. Previous exploration has been mainly limited to the eastern part of the Project where Cambro-Ordovician metamorphics have been explored for gold and volcanogenic base metal mineralisation. Large parts of the Project have had little or no previous exploration despite being located immediately east of the 3.5 M oz Kidston gold deposit.

Glengarry’s access and subsequent exploration has been confined to a 270 km2 area where Native Title has been extinguished. Once the total Project area (~2,300 km 2) becomes accessible the statutory expenditure commitment will increase to > $500,000. Recent negotiations with the local Native Title claimants mean that 75% of the Project should soon be available for exploration.

Geologically, the Project occurs on the eastern margin of the Proterozoic Georgetown inlier where it abuts Cambro-Ordovician metasediments and metavolcanics. Silurian and Carboniferous granitoids intrude both sequences which are also cut by a series of major NNE faults. Potential exist for the discovery of Kidston style gold mineralisation, volcanogenic massive sulphides and orogenic quartz vein hosted gold.

The next phase of exploration should comprise the compilation and review of existing data to identify target areas for further work including mapping, stream sampling and ground geophysics.

Introduction

Glengarry Resources Limited has compiled a large, contiguous tenement portfolio in the Greenvale area located in NE Queensland approximately 200 km west of Townsville. The Project area is ~ 2,300 km2 and comprises 9 EPMs and 1 MDL (Figure 1). Access issues related to Native Title and granting of tenements means that Glengarry’s exploration has been confined to a 270 km2 area covered by the Welcome Downs pastoral property. Recent developments mean that a large part of the remaining project area is now accessible. Given the improving access and potential statutory commitments of>$500,000, it is timely to review the Project to determine future strategies.

Greenvale

Townsville

Charters Towers

100 km


2

Exploration in current project area initially focused on EPM 12123 which is underlain by a large magnetic anomaly identified by BHP as being prospective for iron oxide copper-gold mineralisation similar to Roxby Downs. Glengarry acquired EPM 12123 from BHP and commenced exploration in late 1999.

Known styles of economic mineralisation in the area include the 3.5 M oz Kidston gold deposit located immediately west of the project area and the volcanogenic polymetallic Balcooma group of deposits located immediately to the north. Based on the limited previous exploration in the area, probably due to the poor outcrop, Glengarry considered that there was potential for further discoveries of the above deposit types and compiled the existing tenement portfolio. Lateritic nickel that was mined near the town of Greenvale is not considered a target for Glengarry.

Figure 1: Location map of Greenvale Project

Tenure and Land Access

Tenement and access details are summarised in Table 1 and illustrated on Figure2.


3

Table 1: Greenvale Project – Tenement and Access Status

Granted Exploration Permits

(Low Impact)

EPM 12963(Low Impact)

native title claim; Draft low impact access agreement under negotiation (Ewamian People)

89 288 18 Jul 03 17 Jul 08 Leasehold – about 10% undernative title claim; Draft low impact access agreement under negotiation (Ewamian People)

301 975

Pending ApplicationsBlocks Sq

kmLodged Land Access

EPM 12510 140 454 02 Dec 98 Leasehold – about 80% under native titleclaim. No action yet by DNRM towards grant

EPM 12513 144 467 02 Dec 98 Leasehold – 100% under native title claim.Glengarry rejected offer to grant underEwamian ILUA so application will beprocessed under Commonwealth expeditedprocedures. Objection possible

EPM 12961 93 301 16 Mar 00 Leasehold – no native title claim lodged.Application will be processed under Commonwealth expedited procedures so newclaim and objection are possible

EPM 14346 30 97 03 Nov 03 Leasehold – no native title claim lodged.Application will be processed underCommonwealth expedited procedures so newclaim and objection are possible

407 1,319

Granted Mineral Development LicenceArea Granted Expiry Land Access

MDL 107 80 hectares 01 Nov 91 31 Oct 02 (1) Leasehold – granted pre-Mabo;no impediment to exploration

Glengarry’s initial exploration concentrated on EPMs 12123, 12399 and 12511 covered by Welcome Downs Station where Native Title has been extinguished. EPMs 12512 and 12963 were granted in July 2003 – the eastern parts of these tenements are not covered

Blocks Sq. km

Granted Expiry Land Access

EPM 12123 18 58 06 Oct 99 05 Oct 03 (1) Freehold – Native extinguished

title

EPM 12399 7 23 10 Mar 00 9 Mar 04 Freehold – Native extinguished

title

EPM 12511 59 191 10 Mar 00 9 Mar 04 Freehold – Native extinguished

title

EPM 12512 128 415 18 Jul 03 17 Jul 08 Leasehold – about 30% under

Balcooma

EPM 12513

EPM 14346

Kidston

Greenvale20 km

EPM 12510 EPM 12511EPM 12961

EPM 12963

GGY Granted EPM

GGY Application

EPM 12399 Native Title Claim

EPM 12512


4

by existing Native Title claims and there are no impediments to field work apart from liasing with the underlying pastoral lease holders.

Figure 2: Greenvale Project – Tenement status.

The main Native Title claim affecting the project is held by the Ewamian people and covers the western portions of EPMs 12512 and 12963 and most of the area covered by EPM applications 12510 and 12513. An access agreement has been negotiated with the Ewamian people and execution copies are currently being prepared. Once signed, non ground disturbing exploration will be possible on the affected granted tenure – heritage surveys will be required prior to any drill programs. Timing of the grant of EPM 12510 and 12513 is uncertain.

The eastern most EPM applications 12961 and 14346 are currently unaffected by Native Title claims and, assuming no change, will be accessible once granted. EPM 12961 is currently being processed and may be granted later this year. EPM 14346 was applied for late last year and it will probably some time before it is granted.

Correspondence has been received from solicitors claiming to represent a group who claim Native Title rights over the above two applications. This group wish to negotiate a regional ILUA without submitting a specific Native Title claim – discussions are ongoing and there may be an impact on the processing of the two applications.

Parthenium

Parts of the Greenvale Project area are infested with Parthenium weed – this means careful liaison is required with the local station owners to prevent spreading the infection.

Statutory Commitments

Balcooma

Kidston

10 km


5

Current statutory commitments total approximately $34,000 in rentals and $295,000 in exploration expenditure. Once all tenements are granted, rentals will increase to $80,000 and expenditure commitments to $485,000.

Geology and Mineralisation

The following description is based on available company reports and an interpretation of the aeromagnetic data purchased from the Queensland government. Given the author’s limited experience in the area, it should be treated with some scepticism.

The Project area can be divided into two geological domains (Figure 3). The western 75% of the Project is underlain by lithologies belonging to the Proterozoic Georgetown Inlier. Locally the inlier comprises Early to Late Proterozoic metasediments intruded by Silurian and Carboniferous granitoids. The dominant lithological trend is NNE – SSW. The Proterozoic metasediments are generally magnetically quiet with minor, linear, often folded magnetic highs defining lithological layering. The Silurian granitoids typically occur as NE- NNE trending, elongate lensoidal bodies of varying magnetic character (depending on mineralogical composition). They often appear to be in fault contact with the older metasediments. In contrast, the Carboniferous granitoids occur as undeformed, circular to elliptical, weakly to non-magnetic intrusive bodies with a magnetic, hornfels rim.

Magnetic InterpretationGeology

Devonian sedimentsDiscrete granitic intrusion - weakly magnetic

Cambro-Ordovician metasediments and metavolcanics. Non magnetic.Granitoid - moderately magnetic.

Cambro-Ordovician meatsediments and metavolcanics. Moderately to strongly magnetic.Granitoid-strongly magnetic

Ultramafic intrusion - strongly magnetic Proterozoic metamorphics


6

Figure 3: Geological InterpretationThe eastern part of the Project area is underlain by folded, Cambro-Ordovician metasediments and metavolcanics of the Paddy’s Creek Formation (PCF) and Lucky Creek Metamorphics (LCM) which appear to form a major, SSW-NNE trending anticlinorium. The PCF appears to form the limbs of the anticline and consist predominantly of non-magnetic metapelites which intercalate with the more magnetic and volcanic LCM in the core. Another similar Cambro-Ordovician group known as the Balcooma Metamorphics, which host several base metal deposits, occurs 5 – 10 km to the west separated by a Silurian granitoid known as the Dido Granodiorite. Given the similarities, it is possible that they were contiguous with the PCF and LCM prior to emplacement of the Silurian Dido Granodiorite. This also implies that the PCF and LCM are prospective for volcanogenic base metal deposits.

A series of major N - NNE trending faults cut through the Project area. They are often coincident with major lithological contacts and appear to splay off a regional NE trending fault which occurs to the south where it probably defines the SE margin of the Georgetown Inlier. The magnetic anomaly identified by BHP and interpreted to be a large gabbroic/pyroxenite body is coincident with the intersection of the regional structure and eastern most splay. Another one of these splays is spatially related to the base metal mineralisation within the Balcooma Metamorphics.

Numerous, more localised faults are apparent in the magnetic data. It is possible that some of these control the specific location of the known deposits while the major faults provide the mineralising fluid conduits.

Post Palaeozoic cover comprising alluvium, colluvium, Quaternary basalt, ferricrete and minor Jurassic sediments is common throughout the Project and needs to be considered when planning surface geochemistry. The alluvium, colluvium and basalt are largely controlled by existing and paleo drainages while the ferricrete and Jurassic sediments are probably related to old land surfaces.

Economic Mineralisation

The Kidston gold deposit which was the largest gold producer in Australia during the late 1980s is located 6 – 7 km west of the Project area (Figure 3). It is hosted by a breccia pipe located on the contact between Proterozoic metasediments of the Georgetown Inlier and the Silurian Oak River Granodiorite. The breccia pipe is spatially associated with Permo-Carboniferous rhyolite and quartz porphyry dykes and is probably the same age. The location of the breccia pipe is possibly controlled by intersection the lithological

BALCOOMA

KIDSTON

BOTTLETREE AREA

20 km


7

contact with a NE trending structure known as the Gilbertson Fault. A large Carboniferous batholith occurs approximately 5 km to the south and is probably the source magma for the rhyolite and quartz porphyry dykes.

There are 4 known volcanogenic polymetallic base metal deposits hosted by the Balcooma Metamorphics. The volcanogenic nature of the deposits means that the main control is stratigraphic. The deposits have been discovered by either prospecting which located outcropping gossans or transient EM which detected blind deposits at depth.

Previous Exploration

Pre-Glengarry

The only area within the Project that appears to have had significant exploration is the eastern Cambro-Ordovician terrain. Limited stream sampling and prospecting has been carried out elsewhere within the Project; however, large areas appear to have had no first pass exploration (Figure 4).

The eastern Cambro-Ordovician sequence was explored by a Pancontinental – Homestake joint venture (PHJV) in the mid 1990s. Stream sampling delineated the Bottletree area where a 4 x 10 km, N/S trending zone of strong gold and associated base metal anomalism was recorded. Soil sampling, prospecting and mapping defined multiple bedrock sources which were subsequently drill tested. Drilling intersected narrow zones plus 1 g/t gold and wide zones sub-economic base metal mineralisation (eg 50 m @ 0.4% Cu) and the ground was subsequently relinquished.

Figure 4: Greenvale Project – Stream BLEG coverage. Note similarity of anomalism between Bottletree and Balcooma areas. (Purple squares > 50 ppb Au)


8

All the PHJV data has been acquired; however, not all of it has been captured digitally and this combined with the use of local grid coordinates makes a proper assessment difficult. Given the extensive soil anomalism, the amount of drilling appears an inadequate test and further work may be warranted.

Glengarry

Glengarry’s exploration focussed on the Tag – Big Mag area located immediately to the west and south of the Bottletree anomaly. Exploration comprised several phases of soil sampling, prospecting, mapping, drilling and ground geophysics. Results similar to the PHJV were recorded; i.e. narrow zones of gold mineralisation and wide zones of sub economic base metal mineralisation.

The exploration by Glengarry and the PCJV indicates a large area of anomalous gold and base metals coincident with Cambro-Ordovician metasediments and metavolcanics. Similar terrains elsewhere in Australia including nearby at Balcooma, the Mt Windsor Volcanics near Charters Towers and the Mt Read Volcanics in western Tasmania have all produced economic base metal deposits with strong gold credits implying similar potential within Glengarry’s tenements.

The geology in the Tag – Big Mag – Bottletree area is complex and poorly understood. Given the likely stratigraphic controls on mineralisation, it is critical that this be rectified. All previous mapping needs to be compiled and digitised with gaps filled in with further mapping. Follow up ground EM is probably the best way to define future drill targets.

One point to emerge from this review is that the original BHP magnetic target does not appear to have been explained or tested. Initial attempts to drill test it were unsuccessful due to access problems. Although it has been interpreted as a large ultramafic intrusion (Figure 3), further modelling maybe warranted.

Exploration Potential

Potential exists for 3 main types of economic mineralisation with the Greenvale Project; i.e.

Kidston style gold mineralisation associated with Permo-Carboniferous magnetism and brecciation.

Volcanogenic massive sulphides (VMS) hosted by Cambro-Ordovician metasedimentary and metavolcanic rocks.

Gold in orogenic mesothermal quartz veins.

The most important targeting criteria for Kidston style mineralisation is the spatial association with Permo-Carboniferous breccia pipes and felsic dykes. Emplacement of these bodies is controlled by pre-existing heterogeneities such as irregularities on lithological contacts or the intersection of faults with lithological contacts. Proximity to a Carboniferous magma (and metal?) source is probably also a key feature. Open file records show that Kidston produces a strong stream anomaly in most media and a review of available aeromagnetic data and geological maps should highlight areas within Glengarry’ Project that warrant first pass stream sampling. Given that Kidston is hosted by


9

a breccia pipe, discrete positive or negative magnetic anomalies that could represent pipe- like bodies or destructive alteration are also potential exploration targets. Several of these features are visible in the magnetic data acquired by Glengarry.

At Kidston, the only criteria obvious in the regional data sets are the lithological contact and the proximity to a large Carboniferous intrusion. Consequently, follow up field work within Glengarry’s Project area is warranted where ever the targeting exercise indicates only one of the exploration criteria as the other features maybe too subtle to be visible in the regional data.

Potential exists for the discovery of gold rich VMS deposits in the Cambro-Ordovician lithologies in the east of the Project area. Previous exploration has recorded gold and base metal stream anomalism very similar to the Balcooma Metamorphics (Figure 4) which host several VMS deposits currently being exploited by Kagara Zinc. Given the likely stratigraphic control on mineralisation, all previous geological and geochemical data should be compiled followed by further mapping and sampling where necessary to identify prospective lithogical contacts. Ground based EM geophysics could then be used to define targets for drilling.

Orogenic, mesothermal quartz veins that host economic gold mineralisation occur in a variety of geological settings and eras (eg Archaean greenstones, Victorian slate belts, Charters Towers granitoids) but all are structurally controlled. It is probable that some of the gold mineralisation recorded at Greenvale is this style which often occurs as small uneconomic deposits. The prospectivity for economic mineralisation of this type at Greenvale is enhanced by the regional structures that provide the fluid pathways for mineralisation and the similarities in age and composition of the local Silurian granitoids to the host intrusions at Charters Towers which produced approximately 7 M oz gold. No particular exploration approach is recommended as it is probable that exploration for the Kidston and VMS styles of mineralisation will also detect any orogenic, quartz vein gold present.

Proposed Exploration

The following work is recommended for the next stage of exploration at Greenvale:

Complete interpretation of aeromagnetic data and delineate areas with potential to host Kidston style gold mineralisation. Results should be documented in a separate memo.

Carry out first-pass stream sampling over accessible areas identified by above interpretation.

Digitally compile and interpret all previous open file and Glengarry exploration data for the eastern Cambro-Ordovician lithologies. Determine whether any existing anomalies warrant immediate follow up.

Complete geological map of above eastern area by combining existing work with further mapping where necessary. Delineate horizons prospective for VMS mineralisation.


1

Complete ground EM over prospective VMS horizons to define drill targets.

APPENDIX 2

Greenvale Project Regional Target Assessment

Appendix 2: Greenvale Project – Regional Target

1

Greenvale Project– Regional Target Assessment

by

David Richards

Introduction

A review of regional technical data for the Greenvale Project area has been carried out to delineate and prioritise target areas warranting further exploration. An interpretation of regional aeromagnetic data was completed to define prospective structural and geological settings. Geological, geochemical and drilling data generated by previous explorers (including Glengarry) was then assessed to determine whether further work is warranted.

An important aspect of the target review was an analysis of the “footprints” associated with known mineralisation at Kidston and Balcooma. The following observations have been noted from the data available to Glengarry.

The gold mineralisation at Kidston is hosted by a Permo-Carboniferous breccia pipe located approximately 5 km from the margin of a large, circular (25 km diameter), undeformed, non-magnetic, Carboniferous batholith (i.e. Kidston Batholith). The deposit is also located on a major lithological contact, between Proterozoic metasediments and a Silurian granodiorite, where it is intersected by a NE trending structure known as the Gilbertson Fault. Kidston occurs in a magnetically quiet setting and neither the fault nor the contact are readily visible in the aeromagnetic data; however, the deposit does appear to lie on the extension of a NW trending fault corridor that can be observed on Glengarry’s tenements immediately to the west. Although the Gilbertson Fault is not apparent in the available magnetic data, several major NE trending structures are obvious on Glengarry’s project area. A number of small, magnetic highs or “blips” are also apparent near Kidston and these may represent intrusive plugs of similar age to the mineralisation.

Geochemically, anomalous BLEG/BCL gold results up to 10 ppb have been recorded up to 4 km from Kidston. The stream anomaly while obvious is not strong compared with the Balcooma area where numerous plus 50 ppb gold values have been recorded associated with the known mineralisation.

In the Balcooma area, several small (< 1 Mt), gold rich (up to 1 g/t), high – grade, polymetallic volcanogenic massive sulphide deposits have been discovered hosted by Cambro-Ordovician metasediments and metavolcanics. Extensive gold and base metal anomalism has been recorded by stream sediment sampling and the deposits where discovered by prospecting and ground EM surveys. Local structural and stratigraphic control is important; however, the regional nature of the aeromagnetic data means that these features are not readily apparent in the datasets available to Glengarry.

Balcooma Base MetalÇ2

Dep osits

5

ÇÇÇ

ÇKidston

41 9

3 10 Greenvale

6

87

10 km


2

Regional stream sampling was the main exploration technique used by previous explorers. Several different analytical techniques and mesh sizes were used and the data required sorting before it could be assessed. BLEG/BCL sampling has been effective in detecting known gold occurrences whereas conventional -80# sampling was often ineffective particularly in the Balcooma area. The -80# sampling does appear to have effective for detecting base metals.

A description of each of the target areas is given below with their locations shown on Figure 1. Generic criteria visible in the magnetic data (eg demagnetised zones, structural complexity) as well as criteria specific to the known deposits have been used to define the target areas.

Figure 1: Target Areas

2

ÇKidston

1

5km

2

ÇKidston

Deformed Stratigraphy

1

Kidston Batholith

Contact

5km

Fault


3

Area 1 (Figure 2)

Target Criteria

Proximity to Kidston Batholith. Contact between Proterozoic metasediments and Silurian granitoid. NW trending fault zone that intersects Kidston Small magnetic “blips” similar to those near Kidston.


No previous BLEG/BCL sampling. -80# sampling in NW corner – no significant values recorded.

Regolith/Geology

No significant cover mapped.


Reconnaissance BLEG and -80# stream sampling.

Tenement Status

Not yet granted.


4

Figure 2: Target areas 1 and 2. Figure on left shows magnetic image. Figure on right shows same image with target criteria features highlighted.

Area 2 (Figure 2)

Target Criteria

Complex, strongly folded and faulted, magnetic stratigraphy within Proterozoic metasediments.

Numerous structural traps and heterogeneities.


No previous BLEG/BCL sampling. -80# sampling in NW corner – several plus 10 ppb Au values. High base metal

back ground with several Zn values >50 ppm. Several isolated soil traverses – no significant assays recorded.

Regolith/Geology

Transported cover mapped in NE corner but most of target area appears suitable for stream sampling.



Tenement Status

Not yet granted.

Area 3 (Figure 3)

Target Criteria

Contact between Proterozoic metasediments and Silurian granitoid. Contact irregular with numerous heterogeneities. SE extension of NW trending fault zone that intersects Kidston Several historic workings including Daintree copper mine where previous

exploration delineated small resource.


Wide spaced BLEG and -80# stream sampling along contact. No anomalous gold or copper values recorded despite proximity to known workings. Strong, plus 100 ppm Pb recorded immediately south of Daintree copper mine. Relatively high Zn background.

Geology/Regolith

2

1

3

5 km


5

Extensive alluvial cover mapped along contact zone – conventional surface geochemistry possibly not effective.


Orientation geochemical traverses across Daintree copper mine area. If feasible, extend geochemical traverses to rest of target area. Review Daintree copper mine and review potential to extend known resource.

Tenement Status

Not yet granted.

2

Ç

1

Irregular Contact

ÇÇÇÇ

Daintree Cu Mine

3

Fault

5 km

Figure 3: Target area 3. Figure on left shows magnetic image. Figure on right shows same image with target criteria features highlighted.

Area 4 (Figure 4)

Target Criteria

Tightly folded, magnetic stratigraphy abutting NE trending fault. Circular, annular magnetic anomaly at nose of fold.


Limited BLEG and -80# stream sampling on eastern margin of target area. No significant assay values recorded.

5 Ç

4

9

5 km

Magnetic Anomaly

5 Ç

4Fault

FaultFolded Stratigraphy

9

5 km


6

Geology/Regolith

Major drainage covers southern third; however, remainder of area should be suitable for reconnaissance stream sampling.



Tenement Status

Granted – Native title access agreement signed.

Figure 4: Target areas 4, 5 and 9. Figure on left shows magnetic image. Figure on right shows same image with target criteria features highlighted.

Area 5 (Figure 4)

Target Criteria

Discrete, negatively polarised magnetic anomaly – probable intrusive plug.


Limited BLEG and -80# stream sampling on SE margin of anomaly. No significant assays recorded.

Geology/Regolith


7

No significant cover mapped – area underlain by Silurian granitoid. Magnetic anomaly probably caused by Quaternary basalt plug.


Field traverse to determine cause of magnetic anomaly followed by reconnaissance stream sampling if warranted.

Tenement Status


Area 6 (Figure 5)

Target Criteria

Elliptical, demagnetised zone within Silurian granitoid – possible alteration zone. Adjacent to NE trending fault or contact.


No previous stream sampling.

Geology/Regolith



Field traverse over demagnetised zone followed by reconnaissance stream sampling if warranted.

Tenement Status


Area 7 (Figure 5)

Target Criteria

Major, linear, arcuate, NNE trending zone marked by distinct magnetic low. Either major fault zone or sliver of Cambro-Ordovician metamorphic lithologies. Numerous cross cutting NW trending structures. Possible major alteration zone.


6

7

5 km

Demagnetised Zone

6

7

Fault

Fault

Linear Magnetic Low5 km


8

Limited -80# stream sampling over southern most part of target area. No significant assays recorded.

Geology/Regolith




Tenement Status


Figure 5: Target areas 6 and 7. Figure on left shows magnetic image. Figure on right shows same image with target criteria features highlighted.

Area 8 (Figure 6)

Target Criteria

Big Mag magnetic anomaly totally obscured by transported cover. Continental scale feature immediately south of area of extensive gold and base

metal anomalism. Intersection of 2 major structures.

10

8

5 km


9


Surface geochemistry including lag and soil sampling completed by Glengarry. Reconnaissance RAB/aircore drilling over northern part of area – source of

magnetic anomaly not explained. Ground EM defined weak conductor – diamond drilling intersected pyrrhotite and

pyrite up to 10%. Limited stream sampling on northern margin – no anomalous geochemistry

recorded.

Geology/Regolith

Completely covered – surface geochemistry ineffective. Probable ultramafic intrusion.


Model magnetic high and design drill program to explain source of magnetic anomaly.

Tenement Status

Granted – Mainly freehold land.

Figure 6: Big mag magnetic anomaly


1

Area 9 (Figure 4)

Target Criteria

Apparent folded stratigraphy – mapped as Silurian granitoid but possibly Cambro- Ordovician metamorphics prospective for volcanogenic massive sulphide deposits.


Wide spaced BLEG and -80# stream sampling. Single BLEG sample recorded 3.2 ppb Au. No base metal anomalism.

Geology/Regolith

Extensive cover mapped in south and east of area which may limit effectiveness of surface geochemistry.


Field traverse to determine underlying geology; i.e., Cambro-Ordovician metamorphics or Silurian granitoid?

Follow up anomalous BLEG result with further stream sampling. Reconnaissance stream sediment sampling if appropriate.

Tenement Status

Granted – No Native Title claim.

Area 10 (Figure 11)

Target Criteria

Large area of Cambro-Ordovician metasediments and metavolcanics prospective for volcanogenic massive sulphides.

Complex geology obscured by extensive shallow cover. Strong similarities to Balcooma stratigraphy which hosts several ore bodies


Regional BLEG and -80# stream sampling by Homestake and Pancontinental recorded widespread gold and base metal anomalism including a number of discrete prospects (Figure 7).

Follow up soil sampling and prospecting delineated drill targets at Galah Dam, Lockwood, Powerline, Windmill, Origin, Bottletree, Steam Engine East and Dabs. Several zones of moderate to strong stream anomalism (e.g. Tea Tree) not followed up by soil sampling (Figure 8).

Drilling at Galah Dam intersected wide zones of plus 1 g/t Au and plus 1% Zn over200 m strike with the mineralisation open at along strike and at depth. Best

Ç

Area 10

5 km

Galah Dam

Ç

Area 10

Powerline Lockwood

Steam Engine East/Dabs

Tea Tree Windmill/Origin

Bottletree5 km


1

intersection 16 m @ 4.5% Zn and 1.1 g/t Au (Figure 9); however, most holes not assayed for Zn. Dipole – dipole IP completed by RGC but results not yet reviewed. Given that the target is probably a massive sulphide body, ground EM is probably a more effective geophysical technique.

Drilling intersected narrow zones (1 – 2 m) of 1 g/t Au at Powerline, Windmill, Origin and Steam Engine East; however, extensive areas of moderate to strong soil anomalism not tested (Figure 8).

Soil sampling defined an area of strong Cu anomalism over 1 x 1.5 km at Bottletree. 15 RC holes drilled to an average depth of 50 m with 3 adjacent holes intersecting wide zones (~50 m) of anomalous Cu (>0.3%). Gradient array IP delineated strong conductor approximately 100 m north of anomalous drill holes (Figure 10). Most of soil anomaly untested and good potential for higher grade mineralisation particularly at depth.

Strong zinc anomalies defined immediately east of Bottletree Cu anomaly; however, no drill testing completed.

Soil sampling at Lockwood defined several anomalous zones including one value up to 1600 ppb Au. Costeaning recorded 4 m @ 2.6 g/t nearby. No drilling carried out and eastern part of 2.2. km long drainage anomaly has not been tested by soil sampling.

Glengarry’ exploration at Greenvale has focussed on the southern most part of Area 10 and has comprised several phases soil and lag sampling, prospecting, mapping, drilling and ground geophysics. Wide spread gold and base metal anomalism was recorded.

Figure 7: Target area 10. Figure on left stream BLEG gold geochemistry (grey>2 ppb, blue>5, green>10, red>20, purple>50). Figure on right shows prospect areas referred in text.

Geology/Regolith

Steam Engine Lockwood

ZZ ZZZZ

Z

PowerlineZZ

ZZZ ZZ Steam Engine EastZZZ ZZZ

ZZZZZZZZZ

Tea TreeZZZ Windmill/Origin

ZZZ Z

12 Mile Creek Z ZZBottletreeZ Z

2 km


1

Extensive areas of shallow soil cover mixed with zones of sub crop and outcrop.


Ground EM at Galah Dam to define massive sulphide zones for RC drill follow up (600 m).

Ground EM and dipole-dipole IP at Bottletree Cu anomaly followed by deeper RC drilling (1000 m).

First pass RAB drilling (2000 m) across untested gold in soil anomalies. First pass RAB drilling (1000 m) across Bottletree zinc in soil anomalies. Complete soil sampling across Lockwood drainage anomaly and complete first pass

RAB drilling. Complete first pass soil sampling across 500 x 1500 m, Tea Tree drainage

anomaly. Infill stream sampling over lower order drainage anomalies (i.e. <5 ppb Au).

Figure 8: Area 10 – southern area. Gold geochemistry in streams (>20 ppb - dashed red line) and soils (>50 ppb – solid red line) with existing drill holes (blue – Glengarry, black – Pancontinental).

SW NE

0 50m

Z Z

Chargeability Anomaly

Z ZZZZ

49m @ 0.29%Cu

52m @ 0.35%Cu

63 m @ 0.32%CuZZZZ ZZZZZ

1 km


1

Figure 9: Galah Dam drill section

Figure 10: Bottletree copper in soil anomaly (>100 ppm) showing existing drill holes and chargeability anomaly.

Tenement Status

Mixture of granted and ungranted tenure – no Native Title claims. Glengarry’s tenure covers northern and southern parts of Area 10 with Straits Resources


1

controlling the central portion. All prospects mentioned in the text with exception of Galah Dam and eastern parts of Bottletree are accessible.

Documents

Microsoft Word - 12512anrep04.doc · Web view2021. 3. 17. · First pass RAB drilling (2000 m) across untested gold in soil anomalies. First pass RAB drilling (1000 m) across Bottletree