Targets Blue Mountain Ultramafic Intrusion
Perth, Aug 21, 2012 AEST (ABN Newswire) - Strategic Elements Ltd (
ASX:SOR) is pleased to announce that Strategic Materials Pty Ltd (100% owned) has lodged a prospecting permit application over Blue Mountain, near Kaikoura on the East Coast of the South Island, New Zealand.
Historical exploration reports from the 1980's confirmed that Blue Mountain contains economic grades of the rare metal cobalt, along with copper and nickel in veins of sulphides at surface. Despite this, no geophysical survey has ever been conducted to identify buried zones of sulphides with potential to host large scale deposits. Exploration is intended to determine whether veins of sulphides discovered in the past are related to potential zones of sulphides beneath the surface.
Once all regulatory permits are received the Company plans to undertake sampling of the mineralized areas and an appropriate program of geophysics to generate drill targets.
Geology
Blue Mountain contains an ultramafic intrusion (a body of ultramafic magma that intruded its way to the surface). Ultramafic intrusions host some of the world's giant metal deposits and are very favourable geological bodies to explore for large mineral deposits.
For example, the ultramafic intrusion at Voisey Bay in Canada is one of the richest nickel deposits in the world (also contains copper and cobalt). Interestingly, government geologists had known of ultramafic rocks outcropping at Voisey Bay, but had dismissed them as unpromising. Modern exploration revealed a rich bowl-shaped ore body buried beneath the surface.
Exploration
At Blue Mountain, academic and government literature has confirmed the presence of the ultramafic intrusion. Limited historical exploration at Blue Mountain has reported disseminated sulphide mineralisation occurring widely across the 1.5m x 1 km intrusion. Massive sulphide mineralization was reported in veins with rock chip assays with peak grades of (a) 2.1% Cu, .5% Ni, .1% Co and (b) 1.5% Cu, 1.3% Ni, .5% Co.
An exploration program incorporating geophysics is therefore required to detect buried deposits of sulphides containing copper, nickel and cobalt at Blue Mountain.
Primary targets are:
1) Enriched feeder zone at shallow depth that is feeding the veins discovered in rocks outcropping at the surface. Mineralization in the veins may be sourced from a massive sulphide body at depth in the centre of the intrusion.
2) Contact zone between two units, an olivine gabbro and an olivine pyroxenite, within the intrusive complex; the outcropping veins occur along this contact on the east and south east sides of the complex. This contact zone has been mapped on the western side of the complex but outcrop is limited so it is not known whether sulphides occur here. Grade and thickness of this sulphide zone may increase at depth towards the centre of the intrusive complex.
Portfolio
The Blue Mountain project continues a strategy of developing projects in New Zealand with potential to deliver large upside on the back of an exploration discovery. The Company believes that New Zealand is an underexplored country with significant mineral potential, where the government is taking steps to support the expansion of mining industry.
Managing Director Charles Murphy said "Blue Mountain is attractive as a multi commodity project containing the rare metal cobalt and despite the sulphide related mineralization, it has had no geophysics. A discovery in an intrusion like Blue Mountain could have a significant impact on the Company".
To view the complete Strategic Elements announcement including Figure 1 (Google Earth satellite image), please click the link below:
http://media.abnnewswire.net/media/en/docs/73417-ASX-SOR-20120821.pdf
About Strategic Elements Ltd
Strategic Elements (ASX:SOR) shares are listed on the Australian Stock Exchange under the code “SOR”. The Company is registered under the Pooled Development Program run by the Australian Federal Government to encourage investment into SME’s. To assist Pooled Development Fund’s to invest and raise capital, the Federal Government enables most shareholders in a Pooled Development Fund to make capital gains and receive dividends tax-free.
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