|Mount Isa Inlier|
|Mount Isa Inlier|
Red Metal has a significant land holding of more than 4,000 square kilometres in the highly prospective Mount Isa Inlier in Northwest Queensland, a region which is host to a number of significant copper-gold mines such as Mount Isa, Ernest Henry and Osborne, lead-zinc-silver mines such as Cannington, George-Fisher, Mount Isa, and Lady Loretta, and uranium mineralisation such as Valhalla, Mary Kathleen and Westmoreland. The recent major discoveries by Ivanhoe Australia Ltd which include the Merlin molybdenum-rhenium deposit together with discoveries of copper at Rocklands further highlight the strong exploration potential of this highly mineralised terrain.
Red Metal has a range of targeted areas prospective for giant copper-gold and silver-lead-zinc mineralisation within this prospective terrain.
Maronan Silver-Lead Project
A new geological interpretation backed-up with high silver prices and a strong lead price make the Company’s Maronan silver-lead project one of the most promising silver exploration opportunities in Australia.
Exploration on Maronan has identified two separate styles of mineralisation, bedded lead-silver mineralisation partially overprinted by structurally controlled copper-gold mineralisation. The silver-lead mineralisation is of a similar style to the nearby Cannington deposit, one of the world’s largest silver and lead producing operations, while the overprinting copper-gold mineralisation can be compared with the mineralisation style at the nearby Eloise and Osborne ore bodies.
Strong silver-lead and copper-gold results from recent Red Metal drilling programs, together with the series of significant shallow intersections from historic drill programs have boosted confidence in the Maronan Project and the Company plans to evaluate this very large mineralised system with more step-out holes and targeted infill drilling.
Initial drilling in the 2013 program was targeted at the structurally controlled copper-gold mineralisation towards the northern hinge zone and intersected 13 metres at 1.6% copper with 1.0 g/t gold and 9 metres at 2.1% copper with 1.4g/t gold within a broad intersection of 115 metres at 0.8% copper with 0.5 g/t gold. Following this encouraging intersection the Company carried out detailed ground gravity and further electromagnetic surveying which has highlighted the potential of the hinge zone target.
The next phase of project evaluation commenced with a diamond drill hole at the northern hinge zone targeting the recently defined geophysical anomalies.
Red Metal’s first drill hole into the northern hinge zone target in late 2013 (MRN13002) discovered thickened horizons of strong Cannington Mine-style lead and silver mineralisation at shallow levels.
o 2.3m from 459.6m at 9.8% lead, 277 g/t silver;
Starting at a down-hole depth of just 460 metres these intersections are thicker, higher grade and at significantly shallower levels than those of the earlier drilling campaigns carried out further south by Red Metal in 2013 and 2012.
Importantly, MRN13002 is Red Metal’s first drill hole into the northern hinge zone target guided by the Company’s new geological model and the first drill hole to discover significant bedded lead and silver mineralisation in this region. These newly discovered extensions of mineralisation occur at shallow levels and have significantly expanded the geological potential of this large, under-drilled target zone.
A detailed follow-up program initially focusing on the newly discovered lead and silver mineralisation below the northern hinge zone is being designed and budgeted.
Red Metal owns 100% of the Maronan project.
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 Inova Resources Limited via its wholly owned subsidiary Inova Resources Osborne Pty Ltd (Inova) incorporating five Red Metal exploration tenements in the vicinity of Inova’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.
Inova 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 Inova Resources to explore EPM's 13318 and 13321.
South Cannington Projects: silver-lead-zinc
This new group of projects seeks giant silver-lead-zinc deposits in prospective sedimentary sequences tracked southwards from the nearby Cannington silver-lead-zinc mine. Target areas were defined by processing new regional magnetic and gravity data sets and assessing the geology from Red Metal’s comprehensive historic drill hole database. Exploration titles covering targets from this interpretation were patiently secured as the ground became available. Red Metal will solicit joint venture funding for these exciting, previously untested, base metal opportunities.
NextIsa Project: copper, silver-lead-zinc
For many years geologists have speculated as to whether other prospective shale basins occur to the south of the Mt Isa basin that could have similar base metal ore potential. The Red Metal team recognized that determining the southerly trend of the bounding Mount Isa Fault was the key to seeking out these basins. Upon the release of new high resolution geophysical surveys the team moved quickly to identify this trend and secure title on what they believe is a previously untested shale basin up against the targeted Mount Isa Fault. This interpretation will now be tested in the hope of demonstrating its potential for Isa-type copper and/or silver-lead-zinc mineralisation.
Walford Creek East Project: copper, silver-lead-zinc
Red Metal’s new Walford Creek East project is located 100 kilometres north of the Century Mine along the faulted northern margin to the Isa Super Basin. Red Metal are the first company to apply modern, high sensitivity electromagnetic surveying to the region targeting buried copper or silver-lead-zinc deposits similar to the giant Mount Isa deposits which are associated with conductive stratigraphy and deep penetrating basin margin faults.
Red Metal’s project covers the interpreted eastern extension of the known Walford Creek copper-lead-zinc-silver-cobalt prospect where historic drilling has intersected copper and lead-zinc mineralisation over a four kilometre long zone. Recent drilling on this adjacent prospect by Aston Metals Limited and Copper Strike Ltd returned an encouraging 17.1 metres at 1.94% copper, 0.43% cobalt, 2.41% lead, 0.71% zinc and 29g/t silver from a shallow depth which highlights the potential of the region.
An airborne electromagnetic survey was flown by Red Metal targeting major transfer faults located under shallow cover sequences about 15 kilometres east of the known Walford Creek prospect. Processing of the new survey data has highlighted significant high-conductivity targets prospective for base metal sulphide mineralisation for follow-up ground geophysics and drilling.