Eagle Mountain Mining Limited (ASX: EM2) is a mineral exploration company with a primary focus on exploration of copper and gold. On 9 May 2019, Eagle Mountain provided an exploration update on Silver Mountain Project, situated in Arizona, USA. Silver Mountain Project is the flagship project of the company.
Dr Jeff Jaacks, the consulting geochemist of the company recently, carried out a detailed geochemical study on the Pacific Horizon drilling and found the complex mineralization along more than 6km of Pacific Horizon. Earlier, Dr Jaacks had assisted the company with geochemical studies on surface sampling and testing a bio-geochemical sampling program.
Over 1,000 drill hole samples were analyzed for this geochemical study, where the study analyzed each unique lithology, alteration, as well as mineralization style.
Through the Dr Jaacks’ geochemical study, it was found that there were two different mineralising systems, which came across during the drilling. The first one was the original Proterozoic VMS system hosted in the Horizon. The second was the quartz-carbonate breccias found within the Horizon and below the footwall of the Horizon.
A characteristic epithermal gold chemical signature occurred in the hydrothermal breccia and the meta-chert tuff of the Horizon. The geochemical study also confirmed that there is a chemical similarity between the Horizon and the later hydrothermal breccia. It suggests that the hydrothermal breccia overprints the original VMS signature close to the Pacific Mine.
After the original VMS system got emplaced, there followed an Intrusive-related breccia mineralization, later followed by epithermal overprints in the Tertiary and after a while Supergene upgrading took place.
There were no epithermal pathfinder elements found in the footwall breccia, which is in the western part of the Horizon. Weak base metal anomalies are still linked with the western footwall breccias. There was no visible gradient for Bismuth in the drilling along the Horizon. Also, Molybdenum (Mo) is found in the Horizon, breccia and surrounding rocks.
In all the drilling work which took place along the Pacific Horizon, Quartz-carbonate breccia was discovered from the region. There were two different quartz-carbonate breccias. The first one was within the Horizon and the second was found below the footwall of the Horizon. The geochemical study clearly distinguished between the two breccias.
Once the drilling is completed, the company will start the second round of drill site targeting, which will include an extensive review of all data and consultants’ reports, Petrographic studies, Age dating, as well as continued and more detailed ground mapping and sampling.
Recently, on 6 May 2019, the company announced a non-renounceable entitlement offer of new shares to raise up to $2,775,000. The company will shortly be lodging a prospectus to undertake a non-renounceable entitlement offer of 18.5 million shares, at an issue price of $0.15 per share to registered shareholders from Australia, New Zealand, Switzerland or Singapore, based on one new share for every five ordinary shares held at the record date.
These funds will help the company in the ongoing planned exploration, at the Silver Mountain Project and evaluation of the analogous opportunities in the area.
In the previous one month, the stock has generated a return of 10.71%. By the closure of the trading session, on 9 May 2019, the price of the shares of EM2 were A$0.130, down by 16.129% as compared to its previous closing price. EM2 holds a market capitalization of A$14.34 million with approximately 92.53 million outstanding shares.