Syndicated Metals (ASX: SMD) is an Australian base metals exploration and development company with control of a tenement package covering over 4,000 square kilometres in the world recognized Mount Isa mineral province in North Queensland.
The company manages two advanced base metals projects with a combined resource inventory in excess of 269,000 tonnes Copper, 30,000 tonnes Molybdenum, 2.3 million ounces Rhenium and 315,000 ounces Gold as well as having a suite of advanced and early stage exploration targets on the surrounding tenements.
Syndicated Metals (ASX: SMD) is set to begin a fascinating drilling program at the high-priority Kalman targets in early July aiming for shallow open-pittable copper-gold and molybdenum-rhenium mineralisation, with first results due in August.
Under the restructured Kalman Joint Venture with Cerro Resources NL (ASX: CJO) announced in May, Syndicated can earn up to an 80% interest in Cerro’s +700 square kilometre Mount Isa tenements including the Kalman polymetallic deposit, giving Syndicated control over one of the largest landholdings in the region.
The company has now gained management of two advanced base metal projects in the Mount Isa region of Northwest Queensland following the restructure of the Kalman Joint Venture.
With its interests in the Barbara (copper-gold) and Kalman South deposits, Syndicated is building a significant metal resource inventory within 60 kilometres of existing infrastructure at the Mount Isa mining centre.
The projects have a combined resource inventory of 269,000 tonnes copper, 30,000 tonnes molybdenum, 2.3 million ounces of rhenium and 315,000 ounces of gold.
There looks to be considerable developmental synergies at Kalman and Barbara deposits and preliminary mining and financial studies on potential development scenarios are being evaluated.
Phase 1 of the Kalman program will comprise 5,000 metres of reverse circulation (RC) and diamond drilling in the upper parts of the deposit.
Phase 2 of the drilling is designed to improve the definition of the underlying high grade core of the Kalman deposit.
The company expects initial drilling results in August with an updated resource estimate expected by year’s end, followed by preliminary open pit and underground mine planning.
Reviews carried out by Syndicated since assuming management of the joint venture has resulted in the revised drilling program for 2011.
At the Andy’s Hill iron-oxide copper-gold target located 8 kilometres west of Kalman a LANDTEM geophysical survey to enhance drill targeting will commence shortly.
A Queensland government grant has been awarded to co-fund the drilling of this exciting “Ernest Henry style” copper-gold target.
In addition, development studies and permitting for the Barbara mining lease application is in progress.
At Mount Remarkable final drilling results have been received and resource estimates for the Blue Star and Green Zone are underway following completion of recent drilling programs. These are within the West Leichhardt Joint Venture (Syndicated 51% / Mount Isa Metals 49%).
At Blue Star drilling intersected a strongly sulphidic zone grading 8 metres at 1.41% copper (Cu) and 0.11 grams per tonne (g/t) gold, 70 metres down dip of the 9 metres at 6.12% Cu and 0.69g/t gold reported in May.
At Green Zone, located about 400 metres from Barbara, the shallow RC drilling returned generally narrow intercepts with the best being 8 metres at 1.8% Cu from 6 metres in GZRC020.
Strongly elevated cobalt in a pyritic alteration zone was intercepted in the northernmost drill holes closest to the North Gossan cobalt zone.
The company expects Initial mineral resource estimations for both Blue Star and Green Zone to be completed by the end of July.
Quality assurance and specific gravity test work on the deposits has already been completed.
Syndicated will proceed with a mining lease application following the positive outcomes from the scoping level mining studies conducted on the Barbara copper-gold deposit.
The company is continuing with development and environmental baseline studies at Barbara as part of the mining lease application requirements and consultants are being engaged to facilitate the mining and environmental approvals process.
Significantly, Kalman provides Syndicated with the potential to amass a resource threshold for early mine development at Syndicated's Mount Isa projects by adding to existing copper-gold resources and thereby attaining a critical mass of tonnage.