The anomaly was first identified by AusLAMP, the Australian Lithospheric Architecture Magnetotelluric Project, which allows geoscientists to understand the deep geology of the crust, including signatures of world-class mineral deposits.
The AusLAMP conductivity domain identified below Burra is similar in scale and character to the large anomaly below BHP’s Olympic Dam Mine and Collerson’s investigation likened Burra’s hydrothermal fluid compositions to that of Olympic Dam and the Idaho Cobalt Belt in the USA.
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Ausmex managing director Matt Morgan said the company’s shareholders now had exposure to two world-class IOCG and rare earth element targets.
“One [is] associated with the Mt Freda Complex and currently being drilled by Newcrest Mining Limited (ASX:NCM).
“Now another huge 100-kilometre wide target previously identified under Burra by Geoscience Australia’s AusLAMP survey … has been confirmed by Professor Ken Collerson to have the potential to host mineralisation similar to the Jinchuan deposit.”
Morgan said he was not aware of any other ASX-listed junior mining company offering shareholders exposure to such a potential uplift in value via two world-class IOCG targets.
The Jinchuan deposit in China, the largest single magmatic sulphide deposit in the world, has 500 million tonnes grading at 1.2% nickel, 0.7% copper and 0.4 g/t platinum group elements.
As with Olympic Dam, the Burra anomaly is interpreted to image the metal migration region involved in the formation of the mineral system.
The company considers the area highly prospective for economic concentrations of cobalt and platinum group elements.
Morgan said: “Stage II data collection … commenced last week, with 3D modelling results due in early December 2018 that are aimed at identifying mineral pathways under Burra, similar to mineral pathways previously identified by MT surveys under Olympic Dam.”
He noted IOCG deposits are known to occur in clusters and, with Ausmex controlling 7,000 contiguous square kilometre around Burra, there was a chance the MT work would identify more than one prospect.