Wednesday, May 24, 2017

Camel Hills Project-Joint Venture with Aurora Minerals

Prospective for Copper, Nickel, Gold and Magnetite Iron Ore

The Camel Hills Project covers part of the northwest margin of the Archaean Yilgarn Block, Western Australia. Exploration has involved reconnaissance sampling, geophysical surveying, RC and diamond drilling for magnetite-iron, gold and copper-nickel which have yielded numerous anomalies and targets for further follow-up. Target prioritisation has enabled the rationalisaton of the Project in order to meaningfully pursue the target with economic potential, namely Innouendy  Prospect.

Innouendy Prospect

Two airborne VTEM anomalies, one with a coincident magnetic bullseye, are located in the northern tenement of the Camel Hills Project.  Obscured by alluvial cover, the anomalies have been targetted with soil sampling and show anomalous nickel, copper and zinc. RC drilling was carried out over the magnetic bullseye/ VTEM anomaly, a first-priority target,  in order to intercept the anomaly near surface. The source of the anomaly proved elusive and ground EM surveys were followed up with a diamond drill hole to intersect it at depth. The anomaly was found to originate from a migmatitic magnetite-plagioclase-pyroxene rock, containing stringers and blebs of sulphides, including pyrrhotite, pyrite and chalcopyrite, as well as accessory minerals garnet and biotite.  Further RC drilling confirmed this to be a magnetite-iron deposit of significant size. Economic accessory mineralisation was low, metamorphic textures indicating that mineralisation is likely to have moved out of the rock along with quartz. 

The other airborne VTEM and magnetic anomalies and mapped ultramafic bodies within the Camel Hills project have not yet been drill tested. A program of prospecting and rock-chip sampling, with follow-up soil sampling and drill testing of identified mineralisation is planned.

The historic Byro East Cu-Ni prospect lies 7km south, outside the Camel Hills Project. Reported drilling results are 13.7m at 1.2% Ni, and 67m at 0.7% Cu, 0.3% Ni, from the weathered (saprolite) zone.

Background on Camel Hills Joint Venture

In late 2012, Peninsula Mines completed the necessary expenditure to earn a 51% participating interest in the Camel Hills Joint Venture Project (CHJVP) from Aurora Minerals Limited. As a result of completing this milestone its expenditure obligations have effectively been reduced from prior years as moving forward it is responsible for 51% of the expenditure commitments on the CHJVP. The tenement package has been rationalised to secure the known mineralised deposits and target anomalies, being prospective for gold, copper, nickel and iron ore.