Gulf Mines (ASX: GLM) is an Australia-based exploration company with a focus on uranium, copper, iron, gold and diamonds. The company's principal assets are Ebagoola in north Queensland, Wollogorang in the Northern Territory and Nowa Nowa in Victoria.
Gulf Mines shares spike on Copper Gold potential in Nowa Nowa, Victoria
Gulf Mines (ASX: GLM) has announced that it has currently under development a new conceptual model for known Copper/Gold mineralization at Nowa Nowa, Victoria.
A review of previous GLM drilling in 2008, that resulted in Copper mineralization occurring over significant intervals including 33.5 m averaging 1.89% Cu downhole and Gold values of 1.0 m averaging 2.41 g/t Au downhole, now takes on major significance relative to GLM’s new mineralization model.
The company said the additional geological, geochemical and geophysical data recently acquired by GLM’s new geological team has resulted in development of a significant Iron Oxide/Copper/Gold (IOCG) conceptual model warranting immediate testing.
The gross structural setting is similar to that associated with known IOCG deposits with existing ironstone bodies now appearing clustered around the margin of a major gravity low feature that could represent a buried intrusive body.
A follow-up gravity survey was completed in February 2010 resulting in a model favouring IOCG in a mineralised horst/graben system over the previous porphyry system concept. The original and new gravity surveys, combined with other additional work, already completed, indicates where the hydrothermal mineralization occurs.
The company said an immediate easily drilled target in the quarry just north of Nowa Nowa village will be tested by an inexpensive percussion drilling program.
This evolving model has also predicated further work underway to intensively re-analyze previous drill data and other fieldwork from prospects in the north of the tenement.
Priority exploration areas remain those areas of mineralisation relevant to the development of an effective empirical model. In particular, the silica-sulphide quarry zone is a style of mineralization/alteration that has received little exploration attention in the past.
A drilling program of some 500m proposed for 2010 will test an empirical model for the base/precious metal mineralisation. The base metal/precious metal mineralisation recorded in the drilling results of the Three Mile prospect also requires integration into the mineralisation model.
GLM said it will compile and review recently acquired geological and geophysical data to assist in the location of further scout drill holes.
Field work already completed during early 2010 had been designed to assist in the development of an effective empirical model and included: mapping of recently recognised dyke lithologies that may have intruded along fault structures; volcanic facies mapping to locate eruptive centres that could represent locie for mineralization; and an extended gravity survey to connect the previous survey over the main ironstone bodies with the quarry exposure and the Three Mile Prospect (108 stations).
Gulf Mines shares rose 26% to 2.9 cents in trading today.
