Pernatty Lagoon Joint Venture
The Pernatty Lagoon project, a joint venture with Havilah Resources Limited, is located less than fifty kilometres south of the Carrapeteena copper discovery where Teck Cominco announced an impressive intercept of 905 metres at 2.1% copper and 1gram per tonne gold. Red Metal has earned more than 70% of the project. An eight hole drilling program completed in 2007 identified broad intervals of intense sericite-tourmaline alteration, broad intervals of visible low-grade lead, zinc and copper sulphides and a narrow zone of hematite breccia associated with trace amounts of bornite and chalcopyrite. These elements are consistent with halo mineralization surrounding a large copper-gold deposit and have encouraged Red Metal to continue appraisal of the Pernatty Lagoon project.
Results of drilling to date suggest magnetic targets in the Pernatty Lagoon project area are prospective for copper-gold mineralisation. Two significant magnetic targets on the project area remain untested and a third target requires redrilling with an angled hole.
Red Metal is seeking expressions of interest from major companies to progress to the next phase. View tender document (480 kb).
These projects, including Lily Creek and Sandy Creek, surround the Osborne copper and gold mine and target similar high-grade styles of copper-gold mineralisation as well as Cannington style silver-lead-zinc opportunities. Red Metal’s exploration work has focused within the same structural corridor as hosts the nearby Osborne and Kulthor copper-gold deposits and the highly prospective Mount Dore structural corridor that hosts deposits containing over 3.7 million tonnes of copper and 6.3 million ounces of gold. The application of the world’s strongest helicopter airborne electromagnetic survey system (HeliTEM) together with surface rock and soil sampling has identified several target opportunities for evaluation.
In September 2013, an exploration agreement was signed with Chinova Resources Limited via its wholly owned subsidiary Chinova Resources Osborne Pty Ltd, incorporating five Red Metal exploration tenements in the vicinity of Chinova’s Osborne copper and gold mining operations. The tenements are: Emu Creek, Sandy Creek, Little Sandy Creek, and the Elizabeth Springs permits in the Boulia district.
Chinova bring significant regional exploration and operational experience to these projects and with existing mine infrastructure in the region offer potential cost advantages if successful.
These projects incorporate the southern extension of the highly prospective Cloncurry terrain and are focused along a zone of intense magnetite alteration visible on the regional magnetic imagery and informally referred to here as the Boulia Magnetic Domain. Large circular low gravity features indicative of deep seated granite intrusions and the presence of prospective felsic to intermediate volcanic host rocks provide a favourable geological setting for large magnetite breccia styles of copper gold mineralisation comparable with the large Ernest Henry deposit located north of Cloncurry.
Drilling by Red Metal on the Elizabeth Springs exploration permits has centred on two regionally significant magnetic targets within the Boulia Magnetic Domain and intersected highly encouraging broad intercepts of low grade (0.1-0.2%) copper mineralisation. These holes are some of the first drilled into the Boulia Magnetic Domain and confirm its copper prospectivity and the strong association of magnetite alteration with copper mineralisation in the region.
Red Metal has signed a joint venture agreement with Chinova Resources to explore EPM's 13318 and 13321.
Tennant Creek Copper-Gold Projects
High-grade deposits of copper and gold mineralisation associated with magnetite and/or hematite bearing ironstones which have a strong magnetic and gravity response have been mined in the Tennant Creek Inlier for many years. Recent drilling by Westgold Resources NL on one such ironstone at their Rover 1 prospect has outlined a high-grade gold and copper resource containing the equivalent of over 1 million ounces of gold.
In the same terrain, Red Metal has a large land position located on Aboriginal lands where the prospective rocks are covered by a thin veneer of dune sands and sedimentary sequences. Red Metal’s Tennant Creek licence areas contain significant untested magnetic targets comparable with the Rover 1 prospect.
New World Copper-Nickel Project
Also in the Tennant Creek terrain Red Metal recently secured a new exploration licence application over a regionally significant high-magnetic target located on the flank of a large mafic intrusive complex. The New World project, located 35 kilometres southwest of the township of Tennant Creek, is considered prospective for mafic intrusion hosted nickel-copper mineralisation similar to the giant Norilsk deposits in Siberia or Tennant Creek style copper-gold mineralisation.