Austral Resources (ASX:AR1) reports that it has identified a continuous, ‘high-grade’ core to mineralisation following a diamond drilling (DD) and reverse circulation (RC) drilling program at the Lady Colleen prospect, as part of its Mt Kelly project in Queensland
The Queensland-focused copper cathode producer notes these results, comprising 17 RC and 6 diamond drillholes for a total combined distance of 3,145.3m, confirm that the ‘high-grade’ core to mineralisation remains open along strike and down plunge to the northwest.
Results also highlight the presence of ‘higher grade’ zones within a broader envelope of ‘lower grade’ mineralisation, with key intercepts including; 49m at 1.27% Cu from 173m, including 6m at 2.95% Cu from 189m, 4m at 2.54% Cu from 199m and 5m at 2.18% Cu from 217m (MTKCD087).
Austral notes a scoping study will commence to assess the potential of the Lady Colleen Mineral Resource to support an open cut mining operation at the Mt Kelly tenement.
Addressing the results, Austral Resources CEO, Dan Jauncey said: “The 2022 drilling campaign at Lady Colleen has been completed safely and effectively with the support of our contracting partners Tulla Drilling, Rural Earthworx, and ALS Global.
The outstanding results have delivered our 2022 exploration strategy at Lady Colleen, to explore for a high-grade core within the large Mineral Resource.
Results have confirmed the presence of a continuous high-grade core at Lady Colleen. Critically, the high-grade core remains open along strike and down plunge.
“Results have confirmed the presence of a continuous high-grade core at Lady Colleen. Critically, the high-grade core remains open along strike and down plunge”
We are now updating the Mineral Resource Estimate and designing the next drilling campaign.
Following the Mineral Resource Estimate update, Austral will commence a Scoping Study to evaluate all modifying factors and determine the economic potential for open pit mining at Lady Colleen.
We look forward to advising the market with the updated Mineral Resource Estimate at Lady Colleen over the coming weeks.”
Austral also reports that the next phase of drilling at Lady Colleen will focus on exploring the potential continuation along strike and down plunge, while also focusing on understanding the controls of the ‘high-grade’ mineralisation.
In addition, these results are reported to be on schedule with the extensive program of work that is currently underway at the Lady Colleen tenement, which is working to define an updated Mineral Resource Estimate (MRE) for the deposit by early Q4 2022.
Other progress made towards establishing this lower tonnage, ‘higher grade’ resource includes pit shell evaluation of the updated Lady Colleen sulphide resource with positive results and integration of both the updated resource model and pit shells to optimise the now completed drilling program.
Austral Resources is an ASX-listed company operating in the Mt Isa region in Queensland, known as a world class copper and base metals province. The company’s Mt Kelly project is located within this highly prospective region and is host to its Mt Kelly copper oxide heap leach and solvent extraction electrowinning (SXEW) plant, which boasts a nameplate capacity of 30,000tpa of copper cathode. The project is also host to the Lady Colleen deposit, which contains a JORC Mineral Resource Estimate (MRE) of 7.9Mt at 0.84% Cu.
With results from the recent RC and DD program now received, Austral Resources announces it remains focused on delivering the updated JORC MRE for the Lady Colleen deposit over the coming weeks.
Images: Austral Resources Ltd
