Eagle Mountain Mining reports high-grade intercepts from initial drilling at Oracle Ridge

by Leena Thomas
Image: Eagle Mountain Mining Limited

Eagle Mountain Mining Limited (ASX: EM2) has announced high-grade assays including 4.56m at 5.28% Cu, 50.7 g/t Ag, and 0.77g/t Au from 184m, from the initial two diamond holes at the Company’s 80% owned Oracle Ridge Mine Project in Arizona, USA.

The company reported that priority assays were received for two diamond drill holes at Oracle Ridge Copper Project. Significant high-grade intersections included 4.56m at 5.28% Cu, 50.7 g/t Ag and 0.77g/t Au from 184m, including 0.93m at 13.05% Cu, 127g/t Ag and 0.32g/t Au, and 1.34m @ 6.7% Cu, 2.24 g/t Au, 62.5 g/t Ag.

EM2 said that all intercepts were outside the existing Mineral Resource Estimate, demonstrating that the high-grade mineralisation continues beyond the existing Mineral Resource Estimate.

The company said that higher priority sections from four further drill holes have been submitted to the laboratory with assay results from three holes due in November 2020. Eagle Mountain reported that the drilling program has been extended to the end of CY2020.

Oracle Ridge project

The Oracle Ridge Copper Mine is located less than a two-hour drive from Tucson, Arizona, and only a half-hour from the mining town of San Manuel.

The Oracle Ridge mine is 100% owned by Wedgetail Operations, an Arizona limited liability corporation controlled by Eagle Mountain Mining Ltd and its subsidiaries (80%) and Vincere Resource Holdings LLC (20%).

The project consists of 57 patented mining claims covering approximately 364 hectares, 143 hectares of private land, and 405 hectares of unpatented claims. The project has been recently expanded with the staking of 105 unpatented mining claims over two prospects named OREX and Red Hawk.

Eagle Mountain’s intends to build a low-cost mining operation, which involves increasing the resource base both within the current mine area and in the near-mine vicinity.

Drilling at Oracle Ridge

The company had commenced surface diamond drilling program at Oracle Ridge in early September 2020, designed primarily to target extensions of the high-grade portions of the existing NI43-101 Minerals Resources Estimate.

Eagle Mountain said that nine holes, WT-20-01, WT-20-02, WT-20-03, WT-20-04, WT-20-05, WT-20-06, WT-20-07, WT-20-08, and WT-20-09, were drilled, of which two (WT-20-01 and WT-20-09) DD holes were abandoned due to stuck or broken rods.

The company said that of the seven drill holes successfully completed to their target depth, six intersected skarn-hosted copper mineralisation. EM2 said that the assay results from holes WT-20-03 (upper part only) and WT-20-04 (selected zones) have been received.

WT-20-04

Eagle Mountain said that the DD hole WT-20-04 was drilled in the same zone as the high-grade intersection in historical drill hole OUH-063 (7.7m @ 5.11% Cu, 55.83g/t Ag, and 0.72g/t Au), to assess the mineralisation’s true thickness. The hole was also extended at depth to confirm a historical intersection in a scarcely drilled area of the deposit.

WT-20-03

The company said that the DD hole WT-20-03 was designed to test a sparsely drilled area with potential for extensions of high-grade intersections encountered in historical drilling, within the Escabrosa limestone formation, and at the Leatherwood-sediments contact.

High-grade assays

EM2 said that high-grade assays were reported from the two DD holes, WT-20-03, and WT-20-04.

DD hole WT-20-04

Eagle Mountain said that the drillhole WT-20-04 intersected high-grade mineralisation (4.56m @ 5.28% Cu, 50.7g/t Ag and 0.77g/t Au, including 0.93m @ 13.05% Cu, 127g/t Ag and 0.32g/t Au), immediately to the north of the historical intersection in OUH-063, confirming the historical grades and suggesting a healthy thickness to this zone.

In addition, 1.34m of the above zone included a gold grade of 2.24g/t Au which is one of the high gold grades seen at Oracle Ridge. A review of the historical and new results also suggests that the mineralisation in the area could be flat lying rather than east-dipping as previously interpreted.

The company said that multiple thin fractures with Bornite and / or Chalcocite, both high grade copper minerals, were observed immediately below this intercept. EM2 said that the mineralisation is unconstrained for approximately 100m to the east and follow up drilling is planned to test extensions in this area.

WT-20-04 also intersected a lower mineralised zone near the Leatherwood-sediments contact near historical intersections in drill hole C-132. This lower intersection remains open in all directions.

The company noted that the eastern extensions along the contact could link this mineralisation to a zone of scattered copper sulphides intersected in drill hole C-078 almost 200m to the east.

DD hole WT-20-03

Eagle Mountain said that WT-20-03 successfully intersected three separate zones of mineralisation from 184m depth. The company said that the results confirmed the merit of the exploration concept being tested and have increased the prospectivity of this entire area, which was previously considered barren of copper mineralisation. Importantly this new area is adjacent to historical developments.

EM2 said that further drilling is currently being planned to establish continuity, tenor, and thickness of the mineralisation between WT-20-03 and the historical holes to the north and south.

The company noted that the Leatherwood contact showed moderate skarn alteration with weak to moderate copper sulphides. Assays results for this lower section are still awaited.

Updates and next steps

The company announced that samples have been submitted for drillholes WT-20-02, WT-20-03 (lower section), and parts of WT-20-05 and WT-20-07, with assay results expected to be received in the coming weeks.

EM2 said that the drill rig has recently completed hole WT-20-09 and is now drilling WT-20-10. The company said that upcoming holes are planned to test extensions to 8.4m intersection of skarn-hosted copper mineralisation observed in WT-20-05.

The company reported that a review of the alteration and geochemistry within various structures, fractures, and dykes at Oracle Ridge is ongoing to assess the potential pathways from which the hydrothermal fluids deposited mineralisation at Oracle Ridge. This will be highly beneficial for assessing and identifying targets for additional high-grade mineralisation or the location of mineralisation at depth.

EM2 said that further work will include interpretation of logging and assay results when they become available. The company said that additional drill holes will be completed at Oracle Ridge in the coming weeks.

Management comments

Eagle Mountain Mining CEO, Tim Mason said: “This is an excellent start to our drill program at Oracle Ridge, which targeted zones outside the existing Mineral Resource Estimate (MRE). The intercept of 4.56m at 5.28% Cu, 50.7 g/t Ag and 0.77g/t Au, including 0.93m at 13.05% copper and 127g/t silver is outstanding. The mineralisation in this zone is unconstrained for approximately 100m to the east, with follow up drilling planned to test extensions in this area.

Importantly, hole WT-20-03 intercepted three separate zones of mineralisation outside the existing MRE. Intercepts are located more than 60m from the nearest mineralisation, therefore adding merit to the discovery of a new zone in this area.

Following delays from the busy assay laboratories, we are now beginning to see assay results coming through, and to date we have successfully drilled seven holes to their target depth, with assay results from previously drilled holes expected to be steadily received over the coming weeks.

Our goal is to build on the significant high-grade copper MRE, to support a potential future mining operation, with these assay results reinforcing our view that there is significant mineralisation outside the existing MRE at the Project. The drilling program has been extended to the end of CY2020, and we look forward to updating the market with further results over the coming months.”