Sydney, Oct 29, 2008 AEST (ABN Newswire) - Zamia Gold Mines Limited (ASX:ZGM) is an Australian-based molybdenum, gold and base metals exploration company which continues to focus exclusively on the Clermont region in Central Queensland.
Highlights
Anthony Molybdenum Deposit
- A seven hole diamond drilling program (including extensions to three reverse circulation percussion holes), totalling 1761m has been completed.
- Diamond drilling has demonstrated that the mineralisation is open in most directions and to a depth of at least 300m.
- Geological logging of the drill core by ZGM staff and consultant Dr Greg Corbett has indicated that the Anthony deposit may be part of a larger complex porphyry system.
- A preliminary internal scoping study based on extrapolating current results suggests the project would be economically viable at half current contract molybdenum prices.
- Preliminary metallurgical test work has been commissioned on the oxide mineralisation.
Other Projects
- On the Mazeppa exploration permit additional exploration has been undertaken on two prospects
Matilda a new gold prospect, outlined in soil sampling, has returned anomalous gold values (up to 1.4g/t Au) from rock chip samples in an area of float and limited outcrop.
Frankfield Hill field mapping has shown that past shallow drilling has not tested the gold soil anomaly.
Exploration Overview
ZGM's exploration program is directed towards molybdenum, gold and base metal deposits in a range of geological settings in Central Queensland.
A significant porphyry style molybdenum deposit was discovered at the Anthony Project, 75km north of Clermont in January 2008.
ZGM's other projects include:
- Quartz-pyrite vein gold deposit - West Lucky Break, Frankfield Hill and Matilda.
- Epithermal gold deposits (similar to the Nancy Vera deposits in the northern part of the Drummond Basin) - Mount Rolf Caldera - Nivram
- Porphyry style (or skarn) copper-gold mineralisation - Sally Ann
Exploration Activities
Anthony Molybdenum Project
The molybdenum (Mo) mineralisation at the Anthony prospect occurs associated with a porphyry intrusion complex, in common with most of the world's major Mo deposits.
ZGM believes a conceptual target of around 100 million tonnes Mo sulphide mineralisation (range 50Mt to 150Mt) is realistic. Currently, the drill holes have defined Mo mineralisation over an area of approximately 700m east-west and 350m north-south, and to a depth of 300-350m. A deposit of this type would be mined by open pit methods.
During the September quarter ZGM completed a seven hole diamond drill program on the Anthony project. The 1761m program, commenced in the June quarter, consisted of four new holes and extensions to two of ZGM's reverse circulation (RC) percussion holes and a RC percussion hole drilled in 1994. The diamond drill program was a follow-up to an initial 13 hole (total 1926m) RC percussion program undertaken early in 2008. The core was logged by ZGM staff and consultant Dr Greg Corbett.
The diamond drilling program at Anthony has:
- Demonstrated that mineralisation continues to a vertical depth of at least 300m, a depth that could be achieved in large open cut development.
- Enhanced the understanding of the geology and mineralisation in the deposit which remains open in most directions.
- Indicated that the known mineralisation is consistent with that seen in large scale porphyry systems and it may be part of a much larger mineralised system.
- Expanded the high grade western zone which remains open at depth and to the northwest, west and southeast. The western zone averages more than 700ppm Mo and large portions of it exceed 1000ppm Mo.
- Enabled the planning of follow-up RC percussion holes necessary to fast track the project to at least inferred resource status.
- Highlighted the potential for further porphyry style mineral deposits in the immediate vicinity.
A preliminary assessment of the economics of development suggests that the western high grade zone is a potential starter pit in a mining development and its presence greatly enhances the attractiveness of the project. An internal scoping study based on a 5Mtpa development over 10 years at a molybdenum price of $US16.50/lb (approximately half the current contract price) indicates that the project would produce a satisfactory return at an exchange rate of $A1 = $US0.80.
Preliminary metallurgical test work has commenced on a composite sample of oxide mineralisation from the upper 60m of the deposit. If a saleable Mo product can be produced from this zone it will further enhance the project's economic potential.
Results of the first phase of this work are expected soon.
Other Molybdenum Projects
Compilation of data from past exploration programs has commenced on the Mistake Creek exploration permit application. Most of the past exploration has concentrated on the bullseye magnetic high rather than on the surrounding magnetic lows. From ZGM's experience at Anthony, the magnetic lows surrounding the bullseye magnetic high offer an attractive target. Field work will commence when the tenement is granted.
Reconnaissance exploration coverage of the aeromagnetic targets on the Mazeppa tenement, approximately 15km to the south of the Anthony prospect, is planned to determine if they also may host porphyry style Mo mineralisation.
Quartz-Pyrite Reef Gold Discovery Potential
Quartz-pyrite reef gold was previously mined from the Lucky Break and Belyando deposits.
ZGM has identified a probable regional thrust within the Anakie Metamorphics close to the contact with the Drummond Basin that is prospective for this style of mineralisation. Much of the zone is covered by a thin veneer of later sediments.
Partial leach (which includes Mobile Metal Ion or MMI) soil geochemistry, geological mapping and prospecting, are considered as effective exploration techniques. Approximately 15km of the probable thrust is being explored using partial leach soil geochemistry to identify targets.
Three targets of this type have been identified to date
- Frankfield Hill, a prospect partially explored by previous mineral exploration groups;
- West Lucky Break, a prospect discovered by ZGM in 2007; and
- Matilda, a prospect recently outlined by ZGM.
During the quarter work was undertaken at Frankfield Hill and Matilda.
Frankfield Hill
Geological mapping and rock chip sampling has been undertaken, together with the compilation and integration of the old data. This work has shown that the main gold anomaly outlined in ZGM soil geochemistry was not drill tested in the earlier programs and remains a valid drill target. The previous shallow drilling appears to have tested a shear zone.
Results from rock chip sampling of the prospect are pending.
Matilda
The Matilda prospect was identified from a coincident gold and arsenic soil anomaly. Field mapping has outlined a number of sub-crops and outcrops of quartzite containing haematite and goethite fractures and quartz veins which have anomalous rock chip values. Of eight rock chip samples submitted for assay four returned values ranging from 0.5g/t Au to 1.4g/t Au.
Follow-up test work is expected to include reconnaissance drilling.
Epithermal Gold Potential
Mount Rolfe Caldera
The large Mount Rolfe Caldera (15km x 7km) is a geological setting that may host very large gold systems. Several structural features within and surrounding the Caldera may be host settings for epithermal gold deposits.
Such caldera structures host many high-grade epithermal gold systems. Examples include Lihir, Papua New Guinea (44 million ounces of gold) and the Emperor mine in Fiji (6 million ounces of gold).
To date, ten prospects associated within the Caldera and its surrounds have been subject to initial ground assessment including remote sensing interpretation followed by reconnaissance mapping, MMI soil geochemical sampling and IP geophysical surveys.
The Nivram target is the most advanced target and is interpreted to be an upper portion of the structural setting for a possible high-grade epithermal gold deposit at depth. The potential for concealed gold mineralisation at depth has been enhanced by results of an IP survey. This highlighted a strong bullseye resistivity anomaly with east-west linears which represents a potential deep target that will require drilling to a minimum depth of 200m.
ZGM's application to the Queensland Government grant under its Collaborative Drilling Initiative to drill test the Nivram target, has been successful and the Company will receive up to $24,000 towards the cost of two diamond holes to test the target.
Necessary environmental clearances are being sought to allow the drilling to proceed.
Eagle Prospect, Red Rock
Field Geological mapping at the Eagle Prospect on the Red Rock project 50km west of Clermont has identified chert beds, silicified rocks and possible eruption breccias indicative of a hydrothermal environment. Limited rock chip sampling has elevated arsenic anomalies. More detail rock sampling and detailed mapping is required to ascertain the potential of the prospect to host epithermal gold deposits.
Porphyry (and skarn) Style Copper- Gold Projects
Sally Ann Prospect
The Sally Ann Prospect was first identified by prospectors and has been subjected to limited exploration by earlier companies. Small mineralised quartz veins and gossans occur in an intermediate volcanic sequence. Gossan sampling by Zamia returned gold assays of 38 g/tAu and 9 g/tAu. Results of soil sampling undertaken highlighted a number of discrete copper and gold-copper anomalies. The data generated to date suggest the possible presence of skarn copper-gold mineralisation in andesitic volcanics underlain by a mineralising intrusion.
Recent field mapping has led to a better understanding of the geology and the future of the project is under review.
About Zamia Metals Limited
Zamia Metals Limited (ASX:ZGM) is an Australian mineral exploration company, targeting the Clermont district of central Queensland, a known gold and emerging porphyry mineral province. Numerous targets for gold, copper and molybdenum have been identified by geochemical and geophysical surveys. The Clermont district is highly prospective for gold, copper and other metals including molybdenum. The Belyando Gold Project is Zamia's flagship project – potentially a porphyry-style gold deposit including historic Belyando Gold Mine
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