(Dr) R. Russell and Associates Pty Ltd€¦ · completed. Richard Russell and Associates holds no...
Transcript of (Dr) R. Russell and Associates Pty Ltd€¦ · completed. Richard Russell and Associates holds no...
(Dr) R. Russell and Associates Pty Ltd M.Aus.I.M.M
ABN 14 649 250 177 ACN 009 347 577
Consulting Geologist Unit 2, 27 Seventh Ave.
Maylands WA 6051
Tel (08) 9272 9058 Mob 0427 723 635 E-mail: [email protected]
Prospectivity Overview
PNG Holdings
Gryphon Mining &Energy Melanesia Pty Ltd
INTERIM DRAFT UPDATE
September 2016
INTRODUCTION
1. The Project Area, Brief & Summary of Conclusions
Richard Russell and Associates Pty Ltd have been commissioned by Gryphon Mining
and Energy Melanesia Pty Ltd (GMEM) to independently assess both the alluvial and
hardrock mining potential of their tenement package in Papua New Guinea held via
their Joint Venture with El Dorado Mining & Energy Limited. The report presented
here is an interim report and will be followed by a series of much more comprehensive
reports once the results of sampling analysis and remote sensing analysis has been
completed. Richard Russell and Associates holds no stock in GMEM and carries out
this work on the basis of cash payments only.
Fig.1 GMEM’s Exploration Licence Applications (Provided by the client)
The prospectivity of Papua New Guinea in general and the New Guinea Thrust Belt
specifically is well established by many independent authors. The Client’s tenement
applications total some 2,257 sub-graticular blocks (c.8,000 km2) making it probably
the biggest single landholding in mineral leases in PNG (subject to the grant of all
applications).
Richard Russell and Associates commenced the commission by examining various
remote sensing imagery including high resolution SPOT data in some areas as well as
lower resolution imagery and various reports supplied by the client inclusive of ASX
reports of Pilbara Minerals in respect of promising alluvial and hardrock areas south of
Tamo Village within the area of ELs 2419, 2444 and ELA 2431.
A compilation of stream sediment and rock chip sampling provided by the MRA of
PNG to the client has also been summarised in various images by the client and
provided to the author in respect to ELs 2401, 2419 and ELA 2431.
Previous to the present work programme, the author has carried out field sampling,
mapping and analysis for another client in the area to the north of Kompian in Enga
Province. The area lies to the south of the client’s EL 2419. The author is therefore
familiar with the geology, modes of mineralisation and prospectivity in general in the
New Guinea Thrust Belt.
In addition, the author has examined desktop data reviews provided by the client and
carried out remote sensing-based structural mapping and target analysis work (see Fig.
7). Recently, he visited and examined the geology and geomorphology of parts of the
ELA's 2431 & 2444. Most recently, the author has visited the southern portion of EL
2401 and conducted reconnaissance prospectivity sampling and mapping.
Exploration Philosophy
The client has provided the author with a report on the potential to apply Geotech’s
ZTEM airborne geophysical survey method in the rugged terrain enclosed in the client’s
tenement areas. This report cites numerous case studies where successful discoveries
and/or definition of a range of significant mineral deposits have resulted from
application of the ZTEM technology. One in particular, the Balboa porphyry copper-
gold discovery in jungled tropical terrain in Panama appears to be in a similar setting
to the PNG environment. The Balboa deposit showed no or very little surface
geochemical signature nor magnetic signature and was progressed from initial survey
to a drilled discovery in under 6 months.
The Geotech report also cites case studies where the ZTEM method has been used
successfully in exploration for Porphyry Copper-Gold-Molybdenite, SEDEX base
metals, unconformity uranium, VMS Nickel-Copper, Magmatic Nickel-PGE Massive
Sulphide and Epigenetic Gold of Low, Medium and High Sulphidation character.
The client has advised the author of its intention to utilise the ZTEM method in its
tenement package to define large target structures and arrive at drilled results in 12
months or less which it believes will be of great appeal to investors. The author believes
that such an approach, coupled with remote sensing and limited ground field work on
defined targets, represents a sound exploration philosophy.
Summary & Conclusions
From this combination of data sources, it is clear that the tenement package is highly
prospective for alluvial gold over wide areas as well as hardrock gold, (epigenetic
and/or assocated with copper mineralisation in porphyry copper-gold type deposits,
base metals and other precious metals inclusive of PGE (platinoids). It is readily
apparent that most recorded gold values in stream sediment sampling and rock chip
sampling as well as the numerous artisinal workings are predicated about ready access
and not the fundamentals of the relevant geology.
The reconnaissance work done to date by the Company and other previous explorers
should be augmented by a thorough review and analysis of all relevant remote sensing
data available, such as Landsat, aerial photography, Spot Imagery & aeromagnetics
where available. This work as well as airborne geophysical methods such as ZTEM &
VTEM to prioritise both major hardrock targets for drilling and prospective areas for
exploitation of what may promise to be very large scale exploitation of palaeoalluvials.
Fig. 2 The client’s tenements and the geological terranes of PNG (provided by the
client)
Els 2401, 2419, 2444 and ELAs 2431 & 2468
During the recent field programmes, a recently worked alluvial gold claim, ML
503 (now the subject of various applications since ML 503 was cancelled)
enclosed within the greater ELA 2431, has been inspected. In this area, it is clear
that coarse gold of high grade was recovered. The author estimates from field
sampling and panning that the gravels in the alluvial gold claim contain gold
grades of between 2.5 to at least 5 g/m3. Such grades are normally considered
to be commercial subject to sufficient volumes being determined.
Based on known gold values recorded by the MRA and by the author, as well
as anectdotal evidence of artisinal mining, within the areas enclosed by ELs
2419 & 2444 and ELA 2431, braided river channels on the low-angle plains
along the entire northeastern side of the Schrader Mountains have significant
potential for alluvial gold in both modern and palaeo-alluvials. This is a similar
environment of deposition which is thought to have produced some of the
Archaean gold-bearing conglomerates such as the Beaton's Creek conglomerate
in the Pilbara and the Witwatersrand goldfields in South Africa.
Within EL 2401 there are many areas showing similar potential for gold bearing
alluvial outwash gravels as well as hardrock gold deposits that are sourced from
areas known to contain gold in both alluvial and hardrock sources with grades
up to, and sometimes exceeding, 6 g/t. Field sample panning by the author
revealed that of 74 panned alluvial samples, 49 contained visible gold in the
concentrate. Laboratory analysis of concentrates ranged from 0.004 to 2,879
ppm of Au and zero to 34 ppm of Pt.
The total area with the potential to host gold bearing outwash palaeo-gravels
probably exceeds 1,000 km2 within the client’s tenement package.
Within EL 2419 and partially within ELA 2431, a combination of SPOT data
and other less detailed imagery has been analysed by the author for base and
precious metal mineral alteration signatures coupled with geological structural
analysis. This work programme has resulted in 21 significant targets being
defined variously for gold, base & precious metals (including platinoids), with
8 such targets being considered as “A” grade priority. This preliminary analysis
will be extended to cover the remainder of ELA 2431, EL 2401 and portions of
EL 2444.
Within ELs 2401, 2419, 2444 & ELAs 2431 & 2468, the writer considers the
potential for hardrock gold to be very good.
Within ELs 2401, 2419, 2444 & ELAs 2431 & 2468, Landsat and Shuttle Radar
derived contour studies still in progress have shown the potential for over 1.5
Bn. m3 of broadacre palaeo-alluvials. Where tested by field sampling, such
palaeo-alluvials have exhibited widespread if not entirely uniform visible gold
in panned concentrates and so must be considered highly prospective candidates
for very large scale alluvial exploitation
Within ELA 2431, it appears that later stage epigenetic fluids associated with
late stage diorites are the probably source of the coarse 'shotty' gold in modern
alluvials being worked by local communities. The diorites appear to have
intruded into fracture zones on the margins of ultramafic ophiolites. This coarse
alluvial gold appears to be common in the alluvial deposits downsteam of the
ultramafic/diorite outcrops. It is thought that late stage fluids associated with
these fracture controlled diorites have resulted in the formation of gold ore in
this provenance.
2. EL 2401 & ELA 2431 (Western Tenements)
The author has recently visited this area and his field and office analyses are the subject
of a separate report September 2016 available on request, “Independent Assessment of
the Prospectivity of the Southern Parts of EL 2401 & ELA 2468, West Sepik Province,
Papua New Guinea”. The laboratory analyses of hand panned concentrates collected by
the author in the field are presented in Enclosure 2 herein. EL 2401 clearly has
significant hard rock, alluvial & palaeo-alluvial (sensu stricto) potential. The area has
seen a long history of artisanal alluvial gold mining and several western companies
including Harmony Gold have done basic preliminary exploration over relatively small
areas of the terrain that are reasonably accessible but there has been no widespread
regional geophysical or geological reconnaissance.
Harmony Gold reported on 30th November 2011:
ridge and soil spur sampling first pass results of up to 13.8 g/ton and individual rock
chip samples of up to 39 g/t as well as
a “high tenor gold anomaly with a footprint of over 5 km of strike” around Amanab
within 2401.
It is believed however that Harmony moved on to focus on the more recent Frieda
porphyry copper-gold project.
The client has provided maps derived from PNG MRA data bases showing the
distribution of a mix of alluvial stream sediment sampling with minor hardrock rock
chip sampling results. Some of these are illustrated below. A purported undated
government report quoted “The Minerals Planner (Geologist) spent 3 weeks surveying
the area and found the presence of alluvial gold in the streams/creeks and terraces of
Biaka. Almost every creek surveyed have (sic) presence of gold with good number of
colours as many as up to fifty on the average for every panning dish washed.”
Further work before the planned ZTEM survey will focus on remote sensing mapping,
structural target & mineral alteration signature definition as well as field inspection and
sampling to better define alluvial and hard rock potential. This area (compared to the
Schrader Range terrain within the Client’s Central Tenements, ie ELs 2419, 2444 &
ELA 2431) is more accessible via an established system of logging roads. However,
the general access to the whole area is quite limited and imposes restraints if exploration
was limited to conventional ground sampling in most of the tenement area.
Fig.3 ELA 2401 Au, Pt 3-6 g/t Fig. 4 ELA 2401 Au > 6 g/t
(MRA Source provided by client) (MRA Source provided by client)
An extract from the September 2016 report follows with mapping completed by the
author.
“1.1 Alluvial Potential
Alluvial gold appears to be widespread in the creeks in the southern parts of EL 2401
and EL 2468. At least 740 million cubic metres of gravels are estimated to occur in the
area presently under review. The exploration area represents about 35% of the total
area of the two licences and this estimate of volume is expected to increase significantly
when the whole of the licence areas to the north are explored.
Laboratory results providing Au & Pt in parts per billion (ppb) from the independently
collected pan concentrates are included in this report in Appendix 1. Laboratory
analysis of these panned concentrates returned gold grades ranging from 4 to
2,878,762 ppb (ie 0.004 ppm to 2,878.762 ppm) with platinum grades from 0 to 34,490
ppb (ie 0 to 34.49 ppm).
Out of 74 samples collected, 49 (66%) contained visible gold in field panned
concentrates. At least 17 of the samples were thought by the writer to contain gold
grades of over 1 g/t. The samples were small spot samples rather than bulk samples
and were collected only from sites reasonably accessible by road. The samples
represent a spread over a linear distance of over 40km and represent both modern
alluvial deposits and palaeo-gravels.
1.2 Hard Rock Potential
There is good potential for economic hard rock mineralisation in the exploration area.
The alluvial gold appears to be sourcing in quartz veins in the greenstone/bluestone
schist that outcrops along the mountain front in the exploration area.
Where examined in the field to date, which is mainly along access tracks, the Dauri to
Kanobasi area on the mountain front along the edge of the Sepik Swamps appears to
host the highest concentration of mineralised quartz veins. The area is accessible by
vehicle track and represents a suitable target area for first-pass exploration. From
limited field observations, the veins appear to be 40m to 100m long and about 0.3m to
1m in width. Total strike length of the observed quartz veins in the Dauri to Kanobasi
area is estimated to be at least 2.7 kilometres. Gold grades are not possible to estimate
at this stage. From the high gold grades obtained in the local alluvial gravels, it is
thought that the grades are likely to be high but erratic.
1.3 Recommendations
Further mapping and a programme of bulk sampling is required to fully assess the
alluvial deposits. If the results of the bulk sampling are positive and reflect the grades
obtained in the reconnaissance sampling, it is likely that a successful alluvial mining
operation might be commenced.
Detailed field and photo-mapping followed by rock chip sampling of the hard rock
targets is recommended. The results of this work should form the basis for a drilling
programme.”And :
“A conservative exploration estimate of the volumes of gravel in the southern parts of
EL's 2401 and 2468 is 740 million m3. This represents a probable minimum value. The
present exploration area is about 35% of the total area of the two EL's. When
exploration is completed in the northern parts of the tenements, it is expected that this
value will be significantly increased.” And :
“From the writers observations, the alluvial gold is likely to be derived from small
quartz veins intruding into the ubiquitous blueschist/greenschist meta-sediments
('schist') which outcrops along the mountain front (Photograph 3). No other rock types
were seen in outcrop. However, the Dio River, in addition to schist clasts, is also
carrying clasts of granite, diorite and some magnetite and epidote (?). Furthermore,
the Google imagery shows considerable outcrop areas of carbonates straddling the
PNG/Irian Jaya border in the headwaters of the Dio and Green Rivers (The 'Border
Mountains; Figure 1). The Aitape-Vanimo 1:250,000 map published by the PNG MRA
shows large areas of Pre-Oligocene 'Amanab Metadiorite' throughout the area of EL
2401 consisting of sheared, weakly foliated metadiorite, some metagabbro and
metagranodiorite intruded by dolerite dykes. All of the boundaries of these mapped
lithologies are interpreted, evidenced by the dashed line geological boundaries on the
map. This information suggests that the geology in the hinterland of the Amanab Massif
is much more complex than what is observed along the mountain front. The auriferous
quartz veins may be only part of mineralised epithermal, porphyry or skarn-type
deposits in the mountains further to the northwest.” And :
“Total strike length of the quartz veins (within the Dauri, Kondabasi, Biaka areas
alone) is likely to be in excess of 2.7 kilometres.”
Fig. 5 Reconnaissance Mapping & Gold Occurrences EL 2401 & ELA 2468 Western Sepik
Fig. 6 Detailed view EL 2401 Area of Interest
Following this report, Gryphon has reported to the author its interest in starting a mining
operation in the Biaka, Dauri & Konabasi area within EL 2401. Pending the completion
of the proposed airborne ZTEM & VTEM surveying and the proposed continuation of
the remote sensing studies, this is a logical location to prioritise for initial mining
operations for both hardrock and alluvial gold.
3. ELs 2419, 2444 & ELA 2431 (Central Tenements)
3.1 Overview
o “Witswatersrand” concept for palaeo-alluvial gold deposits interpreted from
Shuttle Radar, field observations and remote Landsat over at least 1,000 km2,
probably in excess of 500 m3 (work in progress)
o Visible gold in palaeo-alluvial concentrates where tested to date
o Grades are estimated by the writer in modern alluvials within parts of ELA 2431 to
be relatively high at between 2.5 grammes per cubic metre (g/M3) to at least 5 g/M3.
o 21 major structural hardrock targets, many with probable mineral alteration haloes
o Within ELA 2431, May 17th 2013 Pilbara Minerals reported to the ASX :
Placer Gold Deposit with 2M oz potential over 20 km strike
Plan to produce 65,000 oz pa
Investment of $4.45 million to deliver 15,000 oz pa
Hardrock gold geochem anomalies
This area of these tenements located between Mt Hagen & the north coast of PNG is
remote, sparsely inhabited and has had very little serious exploration.
The stream sediment data from the MRA (provided by the client), shows a somewhat
subdued signature in comparison to the prolific values encountered in ELA 2401. The
topography in these tenements is much more remote and rugged with relief ranging
from a little over sea-level to over 3,000m. In the writer's opinion, the lack of
exploration in this area is logical. Nevertheless, there is likely to be significant
mineralisation in these areas based on known alluvial gold mining operations and the
author’s independent field inspection and sampling of the areas of the Clay (Kokum)
and Tupuka Rivers within ELA 2431 and EL 2444.
Fig. 7 Alluvial Gold Distribution ELs 1419, 2444 & ELA 2431.
Anecdotal evidence quoted by local people is that every stream running to the north off
the Schrader Mountains hosts gold bearing gravels. Two small alluvial mining leases,
ML 503 (now to be replaced by one of several subsequent applications) located north
of Tamo Village on the Tupuka River, AML 603 located high up in the Schrader Range
area to the southeast of Tamo Village at the headwaters of the Waimera River within
EL 2419 and AML 805 upstream at the headwaters of the Clay or Kokum River have
been or are currently being worked for alluvial gold.
Gravels of the Tupuka River within ML 503 have been mined for gold by a Korean-led
consortium from 2009 to 2015. The much larger Clay (or 'Kokum') River, into which
the Tupuka River drains, is also known to contain gold-bearing gravels. The gold
grades, the extent of the auriferous gravels and amount of gold recovered are relatively
unknown.
3.2 Field Inspection Tupuka and Clay Rivers ELA 2431 & 2444.
In March 2016, an exploration team comprising Mr. John Heugh, GMEM managing
director, Mr. Paul Lewis, a mining engineer, and the writer, along with 10 local
labourers spent 10 days in the area with three main objectives:
assessing the mining equipment left behind by the previous miners,
working out a possible mining strategy and
evaluating the gravels in the area.
The present report deals with the third of these tasks; the evaluation of the gold-bearing
gravels in the area.
3.3 Data and Technique
The evaluation is based on:
Photo interpretation of SPOT imagery to orientate the sampling programme and
map, as far as possible, the geology and geomorphology of the area.
Field sampling of the gravels along the main and tributary creeks, panning off
of concentrate and recording of the results.
The structural geology and outcrop mapping of the Kokum and Tupuka Rivers is
presented in this report as Enclosure 3. The imagery is from the SPOT-6 satellite. It is
a natural colour image with a nominal ground resolution of 1.5m.
The map is a neat pencil-drawn document and has not been fair-drawn as yet. The
1:250,000 geological map sheets of Ramu River and Wewak cover the area of interest
and were used as a guide to the remote sensing mapping.
The field sampling was carried out by collecting samples of river gravels comprised
mostly of modern alluvial gravels. In some areas, older palaeogravels were sampled.
The samples were collected mainly from outcrops in natural exposures but also in old
test pits and from mullock heaps from the previous mining.
The samples each comprised a c.30-litre volume of the target gravels.
The gravels were then dished-off in a gold pan and the concentrate collected for
laboratory analysis. A total of 77 samples were collected in this way from the Tupuka
and Kokum Rivers (Enclosure 1). A total river length of 7.2 kilometres was covered on
the Tupuka River and 16.8 kilometres on the Kokum River and two right-bank
tributaries of the Kokum. 66 of these samples (86%) contained visible gold in the
concentrate. This result is, in the writer's opinion, highly significant given the random
sparse spot sampling carried out and the very small sample size.
3.4 Summary and Results Tupuka and Kokum Rivers ELA 2431 & EL 2444:
3.4.1 Alluvial
The gravels carried by the Tupuka and Kokum (Clay) Rivers are generally gold-
bearing. Typical of many alluvial gold systems, the gravels in the fast-flowing upstream
parts of the river systems are low-volume, high-grade while the larger-volume lower-
grade outwash deposits lie downstream of the mountain front on the lower-gradient
ground.
A JORC 'Exploration Target' volume calculation is under preparation for the gravel
resource. Whilst this is a work in progress, it can be noted that the order of magnitude
estimates of the known high-grade low-volume deposits currently being mined on or
about ML 503 probably number in the thousands of Bench Cubic Metres (BCM) while
the low-angle outwash slopes upstream (and perhaps downstream) of Tamo Village
may host many millions if not hundreds of millions of BCM.
Similar potential is thought to exist in the low-angle outwash slopes on a 100 km front
sloping northeast from the Schrader Ranges within the client’s acreage. The downslope
extent potential of such outwash gravels has not been tested but could be as much as 10
to 30 km within the client’s tenements thus giving a range of surface area from 1,000
to 3,000 km2. It is not known as yet how much of this large area hosts auriferous alluvial
channels.
An examination of detailed aeromagnetics, planned to be flown simultaneously with
the proposed ZTEM & VTEM surveys, may enable rapid estimations to be made. This
would be based on the anticipated characteristic signature of alluvial magnetite, which
commonly accompanies the heavy mineral suite including the gold, in this part of PNG.
VTEM is also proposed to be trialed as a potential mapping tool to establish the
dimensions of the better, wider and deeper palaeo-alluvial channels.
Initial estimates based on remote sensing and detailed high resolution contouring show
potential of over 250 million m3 of palaeochannel sediments in one area alone to the
east of the current Clay/Kokum Rivers. This needs to be drilled and sampled as a
priority as a precursor to the development of alluvial mining via heavy earthmoving
equipment or possibly bucket dredging on a grand scale.
The overall grade of the gold in the gravels as a whole is difficult to estimate on the
basis of the field sampling for the following reasons:
The samples could only be taken where natural gravel exposures occurred.
The samples are generally 30 litre volume samples and are therefore very small.
They are generally not 'bulk' or 'channel' samples but point samples.
Attempts were usually made to sample the lower part of the gravel horizon but this
was not always possible. This procedure would produce a bias in the grade
estimates:
o An over-estimate of the gold grade of the profile as a whole would be
obtained by sampling only on bedrock while
o samples where bedrock could not be reached would provide an under-
estimate of grade.
Nevertheless, the amount of gold in the dish does provide an indication of the nature of
the gold in the natural system:
Coarse, 'shotty' gold characterises the upstream areas in the Schrader Mountains
around Jonimo Camp on the Tupuka River and the upstream parts of the two right-
bank tributaries of the Kokum River (Nowapet Creek and Kruaing Creek). Grades
are estimated by the writer to be relatively high at between 2.5 grammes per cubic
metre (g/M3) to at least 5 g/M3.
Fine gold characterises the gravels that were sampled in the Kokum River and on
the broad low-angle slopes downstream beyond the mountain front around Tamo.
However, most of the gravel accessible here for sampling is loose material in gravel
banks partly incised by the main creek. Few of the sample sites were in the lower
part of the gravel profile or on bedrock. Most of this material is below the level of
the present river and therefore inaccessible. A few fine gold colours were
consistently obtained in the upper loose material. In the writer's opinion, this is a
surprisingly good result. Higher gold grades would almost certainly be obtained
lower down in the gravel profile.
Very large volumes of gold-bearing gravels are likely on the outwash plains in the
present Kokum River and it's palaeochannels around the village of Tamo. Indeed,
braided river channels on the low-angle plains along the entire northeastern side of
the Schrader Mountains have the same potential. This is a similar environment of
deposition which is thought to have produced some of the Archaean gold-bearing
conglomerates such as the Beaton's Creek conglomerate in the Pilbara and the
Witwatersrand goldfields in South Africa.
Pilbara Minerals Limited reported to the ASX in an announcement on May 17th, 2013
that the Tupuka & Clay Rivers combined had potential of hosting a 2 M oz. resource
and that they had plans to develop a 65,000 oz. pa alluvial gold mining operation
beginning with a 15,000 oz. pa operation on the Tupuka River.
In another ASX announcement dated 29th April 2013, Pilbara announced that
“Intermittent past production has yielded 10,000 ounces of alluvial gold, much of which
was very coarse. Pilot test work over palaeo-channels and placers discovered nuggets
(0.1g to >30 g) over a 7km stretch of the Tupuka River.”
Anectdotal evidence indicates that problems with the Korean partners in the Tamo
project coupled with their move into a lithium deposit in WA had a significant bearing
on their decision to pull out of the project.
3.4.2 Hard rock
The writer considers the potential for hard rock gold to be very good. Ultramafic rocks
appear to have been fault-emplaced as ophiolites into the sedimentary section of the
Schrader Mountains in a discontinuous zone about 2.5km wide extending from about
1km upstream of Jonimo Camp toward the southeast for at least 15km. The ultramafics
contain extensive carbonate and magnetite veining with serpentinised fault zones.
Tertiary diorite intrusions appear to have been emplaced along the main boundary faults
of the ophiolite.
The gold itself is not contained in the ultramafics or the diorite. Rather, it appears to be
associated with quartz veining in the main fault zones on the boundaries of the ophiolite
block. The mineralised fluids are likely to have been driven by hydrothermal activity
as the diorites were intruded. If zones of high frequency quartz veins could be located,
the resulting stockworks could yield economic orebodies. The potential for platinoids
should also not be overlooked. Copper and silver mineralisation are also likely in this
sort of environment.
Pilbara Minerals reported to the ASX on the 20th September, 2013 that a sampling
programme south of the alluvial operations (within the current ELA 2431) recorded 13
“anomalous” samples including several anomalous in gold copper and molybdenum
and concluded from petrology analysis that some of the rock samples showed evidence
of a primary epithermal signature.
The author has commenced a remote sensing analysis of all of the client’s tenements in
an effort to define hard rock structural and intrusive related mineral targets focused on
gold and other precious metals such as silver and platinoids as well as base metals.
This work comprising detailed assessment of structures, intrusive features, general
geology and where evident, possible mineral alteration signatures has commenced with
EL 2419 and most of ELA 2431 as shown in Figure 7.
The analysis within ELAs 2419 and 2431 revealed a high level of prospectivity with 8
“A” level high priority targets, 6 intermediate priority targets and 7 lower priority
targets. Several targets are associated with interpreted intrusive “plug” like bodies.
Some of the targets defined are quite large up to several km in diameter.
The structural shear and faulting system evident in the remote sensing analysis coupled
with MRA mapping shows a generally NNE/SSW orientiation of maximum
compression and a WNW/ESE orientation of maximum extension. The compression
faults are thrust and reverse trend faults trending EW to WNW. Extension faults trend
NNE to NS and there are many left lateral NE and right lateral NNW shears .The major
influence on structure is right lateral wrenching oriented about 1500 to 3300 that is, SE
to NW.
The primary mechanisms for most major ore bodies in the world is folding, faulting and
shear zones providing a locus for intrusive and fluid mineralising activity. The area
examined by the author clearly has enormous structural and intrusively-related
mineralisation potential. That there have been no major mineral deposits discovered in
this area is probably due to the general paucity of mapping and consequent exploration.
This is further due to the harsh jungle-covered terrain, remoteness, lack of infrastructure
and generally inaccessible nature of the area.
Fig. 8 Remote Sensing Target Generation and Prioritisation EL 2419 & ELA 2431
In the author's opinion, remote sensing mapping and evaluation, followed by airborne
geophysical techniques such as the client’s preferred ZTEM exploration philosophy,
followed by field sampling, mapping and drilling, is a sound exploration rationale. Such
a general methodology is likely to lead to the discovery of mineralised zones. In this
terrain, some of these have the potential to be both economic and very large.
This work will be extended into ELs 2401, 2444 and ELA 2468 after which high-graded
areas will be selected for higher resolution imagery analysis.
Dr Richard Russell
Richard Russell & Associates
Perth, Western Australia
September 2016.
Enclosure 1-Laboratory Analyses of Field Reconnaissance Pan Concentrate
Sampling of the Kokum/Clay & Tupuka Rivers ELA 2431 & EL 2444
Enclosure 2- Laboratory Analyses of Field Reconnaissance Pan Concentrate
Sampling of the southern part of EL 2401 and ELA 2468
Enclosure 3- – Detailed SPOT data ELA 2431 (To be inserted)