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Red Metal starts drilling new conductors near Maronan Silver-Lead Project

The conductors are considered to be highly prospective for copper and gold mineralisation.
Red Metal starts drilling new conductors near Maronan Silver-Lead Project
Red Metal's exploration licences are around 90 kilometres southeast of Tennant Creek

Red Metal Ltd (ASX:RDM) has begun drilling two recently identified electromagnetic conductors 3 kilometres south of its Maronan Silver-Lead Project in Queensland.

The reverse circulation (RC) percussion drilling program aims to drill one proof-of-concept hole into each of the conductors, for a total of around 600 metres.

The two conductors, dubbed the ‘Great Southern’, are about 400-600 metres long, model at a depth of about 100 metres and are considered highly prospective for copper and gold mineralisation.

Conductivity in surrounding areas

Magnetic imagery places the Great Southern conductors at the hinge zone to a regional fold closure, which sits about 300 metres within the southern boundary of the Maronan tenement.

Infill ground electromagnetic (EM) surveying has also verified a separate zone of elevated conductivity only 1.5 kilometres north of Maronan.

Modelling interpreted two weakly conductive plates in this buckle-folded region, which are considered lower-priority.

Discovery to potentially enhance project economics

The copper-gold mineralisation at Maronan and the nearby Eloise Mine are typical examples of iron sulphide copper-gold (ISCG) style deposits.

These deposits are characterised by varying amounts of copper and iron sulphides in vein and breccia zones that are strongly conductive and can be directly detected using EM surveying.

Unmineralised false positive conductors such as graphite- or pyrrhotite-enriched meta-sediments are also known to occur in the district.

Red Metal completed a preliminary mine scoping study for Maronan based on its inferred resources of lead, silver copper and gold, presenting a reasonable technical and economic case to advance the project towards feasibility.

A discovery at Great Southern could, however, materially enhance the economics of the project.

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Red Metal Ltd Timeline

July 15 2014

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