Key Commodity: Gold, Silver
The Kangaroo Hills project is located 135 kilometres west of the north-eastern Queensland coastal city of Townsville. The Property is located on a north-west trending structural feature of Upper Carboniferous age, with dimensions of 19 kilometres by 35 kilometres known as the Sybil Graben. The Property is comprised of two granted Exploration Permit for Minerals (“EPM”), one application for EPM and one application for a Mineral Development Licence that covers a combined area of 700 square kilometres and provides tenure over approximately 90 percent of the prospective graben area. Gold mineralization is associated predominantly with epithermal style quartz veins but can also occur in hydrothermal breccias. The epithermal quartz veins can range from massive quartz filled structures from one to two metres wide and up to two kilometres long, to broad zones of stockwork quartz vein systems that can range in width from 50 to 100 metres. Better gold grades are generally associated with colloform banded and brecciated quartz-adularia veins, a feature that is common to many low-sulfidation epithermal deposits throughout the world. There are sixteen known mineral prospects at varying stages of development that are the focus of exploration activity within the Property and have been identified by CMA. The large epithermal quartz vein system at Francis Creek is the most advanced prospect within the project area and the one that shows the most promise. The other main prospect that has been subjected to extensive past and recent exploration is at Quartz Ridge. Francis Creek will be the focus of the first phase of exploration on the Property.
The majority of past exploration at Kangaroo Hills has been directed at the large complex vein system at the Francis Creek prospect in the Mt. Fullstop region and the adjoining hydrothermal breccia zone at Quartz Ridge. A total of 5,555 metres of drilling in 77 holes has been completed at Francis Creek in several campaigns. Results have outlined a zone of mineralization on a section of a structure known as the “A” Vein that is between 150 and 200 metres long and is defined by gold grades in excess of 1.0 g/t. Recent detailed channel sampling across sections of the veins that exhibit high adularia content and textures commonly associated with higher gold grades has defined new drill targets.
In Northern Queensland the Drummond Basin is a Palaeozoic volcanic and sedimentary terrain that has historical past gold production in excess of 4 million ounces (124,400 kg) from low sulfidation epithermal deposits (according to historical records). While the Property lies outside of the Drummond Basin, the physical and chemical characteristics of its epithermal vein systems show clear similarities to Drummond Basin systems.
The results of recent follow-up programs of detailed vein mapping and characterization in conjunction with rock chip sampling have defined new drill targets on several of the outlying epithermal vein systems on the Property. The Francis Creek East, Pinnacles and Burdekin prospects are of particular interest. CMA has also recently received encouraging results from orientation trials with a portable Niton XRF analyser that can rapidly determine semi-quantitative levels of a range of indicator elements including higher levels of gold in the field. This instrument offers the potential for considerable cost savings over conventional sampling and assaying and may assist with the location of new vein structures beneath shallow soil cover.