Glandore Project JV
The Glandore joint venture with Southern Gold Limited (ASX:SAU)(ASX announcement on 6 April, 2016) allows SAU to earn up to a 90% interest through exploration expenditure of $1.2 million over 3 years. Aruma received a cash payment of $100,000 in April 2016 and Southern is to spend a minimum of $300,000 on exploration in the first year.
The agreement covers an area of 28.7 km2 of contiguous tenements located adjacent to Southern’s Bulong Gold Project and their nearby Cannon Gold Mine and hosts significant zones of near surface mineralisation identified by Aruma and previous explorers. These zones are targeted to be producers in the near term and Aruma may elect to contribute at a 25% level in the JV after two years.
The Glandore Project JV is situated approximately 40 km east of Kalgoorlie-Boulder in the Eastern Goldfields Province of Western Australia. The Project comprises 3 Mining Licences and 11 Prospecting Licences covering some 41km². All leases are held 100% by Aruma Exploration Pty Ltd for Aruma Resources Limited with Southern Gold Limited earning up to 90%.
Glandore is considered to be both highly prospective for gold as well as highly amenable for the development and exploitation of new deposits due to current Mining Leases and good Heritage outcomes.
Glandore Project Technical Summary
(From Southern Gold ASX announcement, 11 April 2016)
The Company believes the Glandore Project offers one of the best near term new development opportunities currently known in close proximity to operating mills in the Kalgoorlie district. In addition to the known mineralisation, work carried out by Aruma and previous explorers has highlighted the potential for the area to host additional mineralisation. This belief and potential are supported by:
- The presence of significant widths and grade of near surface supergene style mineralisation at three locations;
- The grades and widths of supergene mineralisation are likely to be amenable to mining by open pit methods and is anticipated to be free milling;
- Ore grade intersections (>1g/t Au) untested at depth or along strike in multiple locations; and
- Modern modelling techniques employed by Aruma have highlighted the presence of extensive alteration pathways which will facilitate more regional exploration targeting.
Glandore Gold Project Tenements and Basement Geology
A short list of follow up targets would include:
- Down dip / plunge from the 4m @ 18.8g/t Au intersection in HGRC032 and 10.25m @ 10.3g/t Au intersection in GDJD336 at the Axial Planar project;
- Down dip / plunge and along strike from the 2m @ 43.4g/t Au intersection in HGRC107 at the Supergene Zone;
- Extensions to the 9m @ 4.22g/t Au intersection in GDJC10 Central Fault Zone; and
- Follow up on open intercepts such as 2m @ 1.83g/t Au intersection in GDJC10 at Eastern Zone and 5m @ 35.8g/t Au intersection in GP61B at Lake Consols shaft.
Previous RC programs were carried out after extensive research using CSIRO Fluid Flow targeting and had success in finding economic grades and widths. These are detailed in the tables below.
An initial geochemical survey to investigate the Fluid Flow targets at Steves Prospect defined the mineralisation as 350m long and up to 23m thick. The highly anomalous surface sampling contained values up to 20 g/t gold and visible gold in hand specimens.
The two phases of RC drilling at Glandore was done to follow up the 5m at 4.3g/t in GRC103 at Steves Prospect. These are on a quartz vein system with associated carbonate lode style alteration. This intersection was underneath a surface geochemical sample of 1.01 g/t Au. The intersections in GRC100 are under the initial surface assays including 4.54 and 20.4 g/t from chip samples.
The mineralisation in the most recent RC holes continued the mineralisation to the north and south and it is still open in both directions. Although the “economic intersections” (>1 g/t Au) are not thick, the “mineralised zones” (>0.1g/t Au) are between 4m and 10m thick, with an average of over 7m and are tabled below.
Significant mineralised intersections that include >1.0 g/t Au at Steves Prospect
The above mineralisation is mainly in the western area of Steves Prospect, with GRC94 being located 350m east of the main line. By using the PIMA scanning of chips, Fluid Flow Modelling data and the HyMap information, a better understanding of the Glandore Project and surrounding leases will be gained.
The definition of several lines of mineralisation at Glandore is now apparent, and with the Grunts line still to be followed up, the potential of the Glandore discoveries keeps increasing. The understanding of the local controls on mineralisation will be enhanced by the compilation of all the data, and re-interpretation of the models from all data sources. The timing of this activity will also be effective in controlling expenditure in the current equity market conditions.
An air core program was completed in 2014, with 67 holes for 2,519m which covered the HyMap and Fluid Flow targets on the lake. The air core drilling is the first drilling that has targeted structures on the lake away from the historic drilling at the Axial Planar and Supergene structures where results of up to 10m at 10.27g/t in GDJD336 and 8m at 10.4 g/t Au in EGRC 004 have been recorded by previous operators.
|Hole ID||Zone||AMG94 East||AMG94 North||Azim Deg||Dip Deg||Depth m||From m||To m||Width m||Au ppm|
Anomalous gold (>0.2g/t Au) intersections in air core drilling on Lake Yindarlgooda (all collars 317m RL)
The drilling has recorded a number of anomalous gold values (better than 0.2g/t Au) mostly in the supergene blanket at the base of weathering. The highest gold values were 0.96g/t in AGAC055, 12-13 at the southern end Axial Planar, and 0.93g/t in AGAC012, 20-21m at Genge to the north.
Google Earth image with air core holes completed (solid dots) with new >0.1g/t gold anomalies (in red)