The Parkes project includes two exploration licences northwest of Parkes (Alectown EL7424 and Parkes East EL7676), covering 159 km2. The project is within the Junee-Narromine Volcanic belt of the Ordovician Macquarie Arc, which hosts porphyry copper-gold deposits at Northparkes and Temora as well as the Cowal low-sulphation epithermal gold deposit. It is within structurally prominent stratigraphy east of Northparkes Cu-Au porphyry deposit, and along the strike from Tomingley Gold Mine and Peak Hill.
Magmatic has identified several targets including the MacGregors structurally hosted (orogenic) gold target similar to Tomingley mineralisation, and porphyry Cu-Au targets similar to Northparkes.
The Company entered a joint venture with Japan, Oil, Gas and Metals National Corporation (JOGMEC), on 30th March 2017, whereby JOGMEC can earn up to 51% interest in the project by funding up to AUD $3M of exploration expenditure over three years. Magmatic Resources Ltd acts as operator of the project on behalf of the parties during the JV until JOGMEC becomes a majority owner at which point JOGMEC has the option to appoint the Operator. JOGMEC has a right to assign its interest in agreement to Japanese company.
Buryan is a porphyry Copper Gold target associated with a magnetic low. Recent drilling by Magmatic intersected copper gold mineralisation with best results of 16m at 0.11% Cu, 0.09g/t Au in hole number 18ATDD012. Previous explorers’ results at Buryan has included 22 drill intercepts at greater than 20m at 0.15% Cu (which is the USGS criteria for a fertile porphyry copper gold system. The intercepts include 135m at 0.29% Cu, 0.17 g/t Au, including 28m at 0.50% Cu, 0.28g/t Au. The mineralisation is open to the northeast, and beneath previous intercepts.
Drilling at the prospect has found the following indicators of being in a mineralised porphyry copper-gold system.
- Laminated magnetite-pyrite bearing veins
- Quartz-carbonate-pyrite±chalcopyrite veins
- Multiple mineralisation events recorded in structural features
- Extensive disseminated and fine veins of pyrite±chalcopyrite, with pyrite percentages ranging from 2-5%, and locally up to up to 20% and chalcopyrite percentage is estimated to range from trace to locally 1-2%.
- Host rocks are Goobang Volcanics, which are interpreted as being equivalent to the Goonumbla Volcanics (one of Northparkes host units; 3.8Moz Au & 3.4Mt Cu), a polymictic volcanic breccia (occasionally conglomeratic), intruded by diorite and porphyritic diorite. Phenocrysts in the porphyry are fine (~1mm) feldspar and coarser (~4mm) hornblende phenocrysts
- Additionally, Gold Fields intersected visible gold in their 2011 drilling program
Examination of core from previous drilling, combined with our recent results, has generated further porphyry Copper Gold targets and drilling is planned to commence in the March quarter of 2019.
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MacGregors and MacGregors South
MacGregors and MacGregors South are orogenic gold targets to the east of the Parkes Fault Zone in a similar setting to the 0.76Moz Au Tomingley deposit. The mineralisation is located in sericite-altered fine-grained metasediments and volcaniclastics rocks. It is characterised by east dipping quartz-carbonate-sulphide veins within a halo of disseminated arsenopyrite. Gold correlates with arsenic auger anomalies. Magmatic completed an RC drilling program:
- Structural interpretation showed previous explorer’s drilling may not have been in the best orientation
- 2km gold trend identified within Parkes Fault Zone
- The best results at MacGregors include:
- 10m at 1.25g/t Au (PERC021, from 146m)
- 15m at 0.74 g/t Au (PERC022 from 108m)
- The best results at MacGregors South include:
- 5m at 0.71g/t Au (PERC013, from surface)
- 2m at 1.47g/t Au (PERC014, from 30m)
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The company has completed a close-spaced (50m) aeromagnetic survey over the Parkes Project’s East Parkes licence (EL7676). The interpretation of the survey results has identified eight new copper-gold targets and three new orogenic, structurally controlled gold targets.
The targets have been field verified, showing areas of interpreted shallow cover (less than 5-10m) with very little previous sampling and no previous drilling. Magmatic is in the process of modelling these anomalies to decide on optimal exploration strategy. Exploration methods may include soil sampling, shallow RAB/AC drilling or pole-dipole IP surveys, followed by RC or diamond drilling. Funding of this work is provided by JOGMEC as part of the joint venture agreement, which has recently been extended for a further 12 months and $1M.
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