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Australian Mines could have lead on next Degrussa deposit

The Doolgunna-Marymia region is emerging as one of the hottest exploration post codes in Australia following Sandfire’s recent massive sulphide VMS discovery near DeGrussa. Australian Mines’ Marymia Project has the potential to host DeGrussa style mineralisation.

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Australian Mines (ASX:AUZ) has intersected a thick zone of anomalous copper and zinc mineralisation at the Burton prospect within its Marymia Project in Western Australia’s Doolgunna-Marymia region.

This is encouraging given yesterday’s announcement by Sandfire Resources (ASX:SFR) of the potential massive sulphide VMS discovery just 10 kilometres east of the existing DeGrussa copper-gold deposits.

Burton is located approximately 60 kilometres northeast, and along strike of the DeGrussa Copper Mine and within 50 kilometres of Sandfire’s diamond drill hole TLDD004A, which intersected 14 metres of massive sulphide from a downhole depth of 411 metres.

Notably the single reverse circulation hole drilled at Burton as part of the company’s wider 12-hole reconnaissance drill program was located on the eastern edge of the Burton geophysical anomaly due to tenement boundary constraints.

Having since addressed the tenement boundary issues through the recently announced joint venture with Lodestar Minerals, Australian Mines is proposing to drill the main body of the bedrock conductor at Burton next quarter.

This will form part of a larger program that will test a few other geophysical anomalies across the larger Marymia project area.

“Yesterday’s announcement by Sandfire Resources of the potential massive sulphide VMS discovery ten kilometres east of the existing DeGrussa copper-gold deposits strengthens the view that the Doolgunna-Marymia region of Western Australia is an emerging copper province with the potential to host a number of ore bodies across this district,” managing director Benjamin Bell said.

“The presence of a thick zone of copper anomalism near a modelled bedrock conductor at the company’s Burton prospect, as well as outcropping copper mineralisation at our Little Well prospect in close proximity to Sandfire’s Thaduna copper deposit demonstrates the Marymia Project’s potential to host a possible repetition of DeGrussa VMS-style copper mineralisation.

“The company is continuing to advance its exploration program across the Doolgunna-Marymia area and we look forward to updating shareholders on the progress of these activities as results become available.”


Burton Drilling


The single reverse circulation hole drilled at the Burton prospect intersected 21 metres at 0.05% copper and 0.21% zinc from 193 metres.

This is similar to results returned from Talisman Mining’s (ASX:TLM) Monty prospect (that contains Sandfire’s drill hole TLDD004A), which included 49 metres at 0.03% copper from 87 metres and 6 metres at 0.05% copper from 70 metres.

Burton represents a priority base metal target for the company.

A high-resolution electromagnetic survey completed over this target area last year successfully detected a late-time bedrock conductor beneath copper oxide mineralisation (4 metres at 0.23% copper from 18 metres.

Significantly, this historic copper anomaly and the modelled source of the electromagnetic bedrock conductor appears to coincide with the regionally significant Jenkin Fault, being the key controlling structure of the copper-gold mineralisation at DeGrussa.


Future Activity

Besides plans to drill the main body of the bedrock conductor at Burton next quarter, Australian Mines is planning to extend the electromagnetic coverage over this prospective copper/zinc target.

The company is also seeking to drill test a second conductive zone, which is similarly positioned near the Jenkin Fault structure in addition to its Little Well prospect where surface mapping discovered outcropping copper mineralisation (which subsequently assayed 3.3% copper) within 3 kilometres from Sandfire Resources’ Thaduna Copper Mine.

Design of the drill program is ongoing.


Analysis

The discovery of a thick zone of anomalous copper and zinc mineralisation is promising given Sandfire Resources has made a potential massive sulphide VMS discovery close to the existing DeGrussa copper-gold deposits.

For Australian Mines, this highlights the potential of its Marymia Project to host a possible repetition of DeGrussa VMS-style copper mineralisation.

Little wonder then that the Doolgunna-Marymia region is emerging as one of the hottest exploration post codes in Australia.

The company clearly understands the potential of the region, having recently signed a farm-in and joint venture agreement with Lodestar Minerals (ASX:LSR) that adds an additional 15 kilometres strike continuity of the priority Jenkin Fault structure.

There is news flow ahead with the planned drilling program that will test the Burton and other prospects.

 

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