Base & Precious Metals: Exploration Ramps up
- New sampling defines extensive Cu-Pb-Zn-Au-Ag mineralisation, setting targets for ongoing evaluation at Thackaringa
- Newly discovered prospects characterised by outcropping quartz gahnite - a key vector for Broken Hill Pb-Zn-Ag style deposits:
o Zinc up to 2.2% reported in rock chips
- Updated geology model has provided renewed focused on previously explored prospects, with rocks chips defining extensive Cu-Pb-Zn-Au-Ag mineralisation:
o Pyramid Hill
-- 7.5% Cu, 40g/t Ag, 1g/t Au, 0.1% Ni & 0.2% Pb
o Old Coolgardie West
-- 5.2% Cu, 140g/t Ag, 0.2g/t Au, 0.2% Ni & 0.1% Pb
o Himalaya North
-- 2.6% Cu, 5.9% Pb, 62g/t Ag & 0.8% Zn
- Planning underway to conduct detailed ground geophysics (Induced Polarisation) in early 2018 to define drill targets over key prospects
- Latest works based on major recent field mapping campaign and newly acquired geophysics that greatly enhanced targeting, identifying multiple base and precious metal targets
Cobalt: Thackaringa JV Delivering Strong Drilling Results
-The Thackaringa Cobalt Project in JV with Cobalt Blue (ASX:COB) delivers latest drilling results from an extensive 13,000m program designed to upgrade the resource classification - expected early 2018
o 72m at 1,115ppm Co, 10.1% S & 9.8% Fe from 15m (17THR042)
o 41m at 1,096ppm Co, 10.4% S & 10.0% Fe from 61m (17THR055)
- Cobalt mineralisation outcrops in prominent ridgelines that extend for 4.5km strike with widths ranging from 25 to 100m and open at depth. All deposits are undergoing extensive technical studies to support Pre-feasibility Studies due mid 2018
BPL's CEO Trangie Johnston commented:
"We are focusing much more intensely than ever before on the considerable base and precious metal potential at Thackaringa. Substantial work is planned in the year ahead based on an improved understanding gained by combining new work with earlier results. The Thackaringa Project contains all the key ingredients that are used to target world class deposits such as the 300Mt Broken Hill ore body located 25km to the northeast. We will advance the understanding of the best targets by undertaking further field work before we move drill rigs on site in about six months."
Base & Precious Metals
Recent geological mapping combined with newly acquired high resolution geophysics has greatly enhanced base and precious metal exploration at the Thackaringa Project. BPL retains the rights to all lead, zinc, copper, silver and gold minerals at Thackaringa under the terms of the Thackaringa Joint Venture with Cobalt Blue Holdings.
These targets can be broadly defined by stratigraphic host comprising the Thackaringa and Broken Hill Groups of the Willyama Supergroup (see Figure 1 in link below).
The Broken Hill Group
The Broken Hill Group, hosts the world class Broken Hill Pb-Zn-Ag orebody comprising 300Mt of ore containing 30Mt Pb, 24Mt Zn, 1B oz Ag and 1M oz Au. This stratigraphic sequence is widely distributed across the Thackaringa Project with two prospects prioritised for further exploration (see Figure 2 in link below):
Pyramid Hill is hosted within the lower Broken Hill Group and defined by outcropping 'lode rocks' persistent over 500m of strike. Rock chip assays confirm anomalous geochemistry; returning a maximum of 7.5% Cu, 40g/t Ag, 1g/t Au, 0.1% Ni, 0.2% Pb & 0.4% W. Shallow reconnaissance drilling tested some 150m of the mapped extent with intersections including 5m at 0.23% Cu, 1g/t Ag, 0.66g/t Au, 0.04% Zn, 103ppm Co & 569ppm Ni from 64m (11RCPM01).
Himalaya North is also hosted within the lower Broken Hill Group and is characterised by a stacked sequence of 'lode rocks' mapped over 1,500m strike. Rock chip sampling has confirmed anomalous geochemistry returning a maximum 2.6% Cu, 5.9% Pb, 62g/t Ag & 0.8% Zn coincident with multiple quartz gahnite occurrences. Shallow reconnaissance drilling tested some 200m of the mapped extent with intersections including 2m at 0.17% Cu, 0.17% Zn, 0.04% Pb & 7g/t Ag from 41m (11RCHN3).
The Thackaringa Group
The Thackaringa Group hosts the Thackaringa Cobalt-Pyrite deposits currently under the Thackaringa Joint Venture with Cobalt Blue Holdings (see details below). Additionally, BPL has identified numerous copper rich Broken Hill type targets within the Cues Formation (see Figure 2 in link below) of the Thackaringa Group including:
Old Coolgardie West
Old Coolgardie West is defined by anomalous rock chip samples occurring over some 800m strike and returning a maximum 5.2% Cu, 140g/t Ag, 0.2g/t Au, 0.2% Ni & 0.1% Pb. The zone is broadly associated with extensive garnet amphibolites and laminated calc-silicates with strong magnetic signature.
Cobalt: Thackaringa Cobalt Project Delivering Strong Drilling Results (TJV)
The successful spin-off of Cobalt Blue Holdings Limited (ASX:COB) was completed in February 2017, with investors seeking shares exceeding the $10 million maximum being offered. The deal was an important initiative for BPL to realise significant value from its Thackaringa Cobalt Project.
An important part of the spin-off was that BPL entered a detailed farm-in joint venture agreement with COB to finance and undertake an extensive exploration and development program at Thackaringa (the TJV).
Under the TJV, COB can earn 100% of the project if it completes a 4 stage farm-in by committing $10.9 million project expenditure by 30 June 2020, and pays BPL $7.5 million in cash. In addition, BPL will receive a 2% net smelter royalty on all cobalt produced from the Thackaringa tenements for the life of mine.
COB currently has 51% beneficial interest subject to completing Stage 1 milestones with BPL retaining 49% beneficial interest. In order for COB to retain 51% beneficial interest, key deliverables are a 40Mt Indicated Resource sufficient to support a Pre-feasibility Study to JORC 2012 standard by 1 April 2018 and the Pre-feasibility study by 30 June 2018 (refer below for more details).
Importantly, under the terms of the TJV, BPL retains the rights to lead, zinc, copper, silver and gold minerals on the TJV tenements.
Resource Definition & Geotechnical Drilling
A significant drilling campaign commenced at the Thackaringa project in October 2017 comprising 75 holes for approximately 13,000m. The program is designed to infill and confirm geological continuity to support improved Mineral Resource classification. The revised Mineral Resource estimate will underpin Ore Reserve estimation to be completed during the Pre-feasibility study.
A dedicated geotechnical drilling program has also commenced with results to inform detailed pit optimisation and mine planning.
Initial results from current drilling were released by COB on 4 November 2017 and include:
o 72m at 1,115ppm Co, 10.1% S & 9.8% Fe from 15m;
o 25m at 1,204ppm Co, 9.5% S & 10.6% Fe from 154m;
o 18m at 1,145ppm Co, 7.5% S & 7.5% Fe from 11m;
o 67m at 906ppm Co, 9.5% S & 9.1% Fe from 64m;
o 20m at 982ppm Co, 12.2% S & 11.4% Fe from 10m; and
o 113m at 830ppm Co, 7.3% S & 7.8% Fe from 104m.
o 41m at 1,096ppm Co, 10.4% S & 10.0% Fe from 61m
The Thackaringa project Pre-feasibility study is well advanced with the continuation of metallurgical testwork and ongoing geotechnical, hydrological and environmental assessments. Results to date have been positive and the joint venture remains on track to complete Stage two deliverables by 30 June 2018 as announced by COB on 26 October 2017.
To view tables and figures, please visit:
About Broken Hill Prospecting Ltd
Broken Hill Prospecting Ltd (ASX:BPL) is an Australian exploration company focussed on the discovery and development of strategic mineral resources across two primary geographical areas; the Murray Basin Region (Heavy Mineral Sands) and the Broken Hill Region (industrial, base and precious metals, including the Thackaringa Cobalt & Base/Precious Metal Project).
Cobalt Blue Holdings Limited
Broken Hill Prospecting Ltd