Location: Wudinna region, central-northern Eyre Peninsula, South Australia
Geological Province: Central Gawler Gold Province, Gawler Craton
Ground Holding: 9 tenements comprising 3,644 sq kms
Ownership Status: Majority100% owned by Adelaide Resources with 1 tenement (174 sq kms) owned 90% with an option to acquire the remaining 10% for $200,000 cash or shares
- Project includes numerous prospects and 3 deposits, all of which were discovered over a decade ago
- Significant potential exists at the Barns, Baggy Green and White Tank deposits which are coarsely drilled and open at depth
- Recent positive results achieved by neighbouring explorers has helped put the region back onto the investment radar
- Thurlga JV with Investigator Resources covering ADN’s Thurlga tenement provides exposure to the Uno Province
Adelaide Resources holds equity in 9 tenements capturing 3,644 sq kms on the northern Eyre Peninsula in South Australia. The majority of the area (3,470 sq kms) is 100% owned. Newcrest Mining holds a 1.5% NSR royalty over a number of the project tenements.
In August 2014 the Company announced it had entered into a Farm-in and Joint Venture Agreement (the Thurlga Joint Venture) with neighbouring explorer Investigator Resources Limited (IVR) to explore one of the project tenements. IVR can earn 75% equity in the 333 sq km tenement by spending $750,000 by 30 June 2017.
Central Gawler Gold Province showing location of Eyre Peninsula Project
Geological Setting – The Central Gawler Gold Province
The Eyre Peninsula Gold Project falls largely in the Central Gawler Gold Province, a 450 kilometre long arcuate belt which contains numerous mineral deposits and prospects which formed around 1590 million years ago and which are related to the extensive Hiltaba/Gawler Range Volcanic tectonothermal event.
Gold deposits in the Central Gawler Gold province include the Barns and Baggy Green deposits (100% owned by Adelaide Resources), and the 878,000 ounce Tunkillia and 97,000 ounce Tarcoola deposits owned by third parties.
Silver and base metal deposits also formed during the 1590Ma event. The 20 million ounce Paris Silver deposit, owned by Investigator Resources Limited, is situated on a tenement adjacent to the Company’s Eyre Peninsula Gold Project.
Part of the current Eyre Peninsula Gold Project has been held by Adelaide Resources since its listing in 1996, forming one of the assets included in the Company’s Initial Public Offering.
The Company completed surface calcrete geochemistry across the project, discovering numerous gold anomalies. Follow-up drilling of a number of these anomalies confirmed they are sourced by underlying gold mineralisation.
The Barns gold deposit was discovered in 2000, with significant intersections including 12 metres at 3.38g/t gold from 67 metres in RCBN-123, and 35.49 metres at 1.80g/t gold from 115 metres in PDBN-134.
Intersections from White Tank, discovered in 2003, include 7 metres at 10.03g/t gold from 63 metres in RHBN-234, and 17 metres at 3.47g/t gold from 60 metres in RHBN-248.
Baggy Green was found in 2004 with notable intersections including 8 metres at 4.79g/t gold from 34 metres in WUD6-770, and 5 metres at 9.01g/t gold from 66 metres in BGRC-865.
Regional gold in calcrete geochemistry image.
Baggy Green Prospect plan.
All three deposits dip moderately to the northwest and display large, zoned alteration haloes. The Company’s prospects share some geological characteristics with the large Tropicana gold deposit located in Western Australia including similar alteration assemblages, structural controls and deposit morphology. Much of the gold at Tropicana is hosted in high grade shoots developed within the principal southwest dipping mineralised plane.
Barns, White Tank and Baggy Green are also likely to include high grade shoots of gold with close spaced drilling at the White Tank prospect confirming such shoots are present. The discovery of similar high grade shoots of gold at Barns or Baggy Green could transform these into economic deposits.
White Tank Prospect drill section.
Barns, White Tank and Baggy Green were discovered by testing calcrete geochemical gold anomalies, however calcrete sampling is considered ineffective over a large part of the project due to a lack of calcrete media.
In 2013, CSIRO scientist Dr Mel Lintern published ground breaking results of research he had completed into the biogeochemical behaviour of gold. Dr Lintern showed that eucalypts have an ability to transport gold from the sub-surface and deposit it as “nanonuggets” in leaves, which can then be sampled and assayed to reveal the presence of sub-surface gold.
One of Dr Lintern’s research field sites was the Company’s Barns Prospect, and the recognition that the biogeochemical gold transport process is occurring locally presents a possible new technique that can be applied to exploring the large area of the project where previous calcrete sampling proved ineffective.
In May 2015, after a hiatus of over 10 years, Adelaide Resources recommenced drilling field activities on the Eyre Peninsula Gold Project with a 7 hole diamond drilling program completed at the Barns and Baggy Green prospects. All seven holes drilled intresected gold mineralisation, with a standout result of 16.1 metres at 3.06g/t gold at Barns, confirming the predicted mineralisation zone boundaries and thus lowering the risk for future drill programs. Other results from Barns included 15 metres at 1.25g/t gold, 15 metres at 0.75g/t gold and 7 metres at 1.1g/t gold. At Baggy Green results included 11 metres at 1.87g/t gold contained within a broader zone assaying 30 metres at 0.86g/t gold, and 8 metres at 1.22g/t gold.
Individual assay samples returned results of 16.7g/t gold and 13.2g/t gold indicating the presence of a high grade component in the mineralised zones.
Based upon recent 3-D modelling of historical drill results to a depth of 200 metres below surface, the Company has determined an Exploration Target ranging from 20 to 40 million tonnes at a grade ranging from 0.4g/t to 0.6g/t gold within the broad mineralised envelopes that enclose gold mineralisation at Barns and Baggy Green. The potential tonnage and grade of the Exploration Target is conceptual in nature as there has been insufficent exploration to estimate a Mineral Resource, and it remains uncertain if further exploration will result in the estimation of a Mineral Resource. Multiple lodes of narrower but higher grade mineralisation occur within the broad mineralised envelopes at both prospects which may allow the future estimation of lower tonnage but higher grade resources at Barns and Baggy Green.