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Summary
- Turondale Project (ELA6044) in highly prospective East Lachlan Fold Belt, litho-structural setting similar to the Hill End Goldfield (501,552 ounces Gold Resource)
- ELA6044, bordered by “EL8942” hosts two separate north-trending reef systems extending, exhibits high grade gold anomalies
- Historical sampling program indicates grades up to 2.6 g/t gold, 3700 ppm copper and 5000 ppm lead
- Field activities to commence on granting of licence application, expected in upcoming months
The experienced and diversified developer and miner, Shree Minerals Ltd. (ASX:SHH) announced the completion of the initial review of the historical reports for the tenement application ELA6044 (Turondale Project ) in the East Lachlan Fold Belt of New South Wales.
The Turondale Project within the tenement covers over 129.9 square kilometres, almost 15 kilometres north of Bathurst, is prospective for orogenic, porphyry and skarn related gold mineralisation. The field exploration activities await the granting of the exploration licence (application lodged in July) which is expected in the upcoming months.
Region & Local Geology bolsters prospectivity for High grade gold mineralisation
The East Lachlan Fold Belt is home to mega copper and gold mining operations including Newcrest Mining Limited (ASX:NCM) Cowal gold mine, Evolution Mining Limited (ASX:EVN) Lake Cowal Gold Mine and Alkane Resources Ltd (ASX:ALK) Tomingley Gold operations with a long heritage of gold (80 million ounce) and copper (13 million tonnes) production amongst others. The 2019 mega Boda discovery intercept mineralisation of 502 metres with grades of 0.2% copper and 0.48 g/t gold, 211 metres downhole.
ELA6044 encompasses a folded sequence of Devonian aged sediments and lesser volcanic rocks with potential for near-surface high-grade gold via orogenic vein systems. The litho-structural setting is interpreted to be similar to the Hill End Goldfield (15 kilometres northwest) which holds mineral resource of 501,552 ounces of gold (4.68 million tonnes with a grade of 3.3 g/t).
Historical gold occurrences: 9 gold occurrences aligned in the north-northeast direction parallel to the regional strike and folding within the tenement application area. The gold occurrence includes shafts, shallow workings and are subjected to alluvial mining with no modern exploration applied to them.
North-trending reef systems with Gold Anomalism
The Turondale project is bounded by Krakatoa Resources Limited’s (ASX:KTA) EL8942 and Alkane Resources’ EL8940 tenements. The Krakatoa’s EL8942 hosts two separate north-trending reef systems namely, the Quartz Ridge and Box Ridge, including shafts, adits over 1.6 and 2.4 kilometres, respectively.
Quartz Ridge: Auriferous quartz vein shoots with demonstrated high-grade gold mineralisation with grades of up to 1,535g/t Au in rock chip samples and shallow gold targets of lengths up to 10 metres with a grade of 1.64g/t gold in drilling from surface to end of the hole.
Box Ridge: A 2.4 km long gold reef system with rock chip sampling grades up to 60 g/t gold
Both quartz reefs are interpreted to strike southwards and extend into Shree’s tenement application area, further enhancing the potential for gold mineralisation.
Sediment anomalies with high grade gold mineralisation
The aerial and ground surveys conducted by Nickel Mines Ltd. in 1972 for gold mineralisation (within the EL1974). A total of 48 targets were selected and collected 288 soil and stream-sediment samples from the creeks and gullies draining the area. Highly anomalous gold, silver, copper, and lead were reported in the historical mining centres, and results are as follows-
Some of the anomalous assays within the project area Source: Shree Minerals 8 September 2020
* Note: “na” pertains “No assay recorded”
Gold values recorded sample grades up to 2.6 g/t gold, 3700 ppm copper and 5000 ppm lead which Shree considers as highly prospective. Old workings at the Cheshire Creek and Winburndale Rivulet further enhance the anomalous catchment area.
Read Here: Shree Minerals completes placement with $1.2 million committed
Structured and Systematic Exploration Program
Shree will proceed on compiling historical exploration data, geological mapping and geophysical surveys for identifying new targets. The ground activities on the highest priority targets, identified from the literature review, will commence upon granting of the exploration licence.
The southern strike extensions of both Quartz Ridge and the Box Ridge prospects have been identified as priority targets and will be subjected to a reconnaissance geological mapping and stream sediment sampling. Another priority target is located close to the historical mine workings
at Cheshire Creek and Winburndale will be subjected to an additional stream-sediment sampling, soil sampling and geological mapping.
The Turondale project in the Lachlan Fold Belt bodes well with Shree’s strategy of acquiring mineral projects in highly prospective mineral fields. Shree seeks to acquire further tenements as and when such opportunities arise.
Shree Minerals ended the trading session at $0.015 a share on 8 September 2020, with a market capitalisation of $11.39 million.
All financial information pertains to Australian Currency unless stated otherwise.
