Click to type date
11 December 2015
Market Announcements Platform ASX Limited
Exchange Centre, 20 Bridge Street
Sydney NSW 2000
EXPLORATION UPDATE - SALT CREEK PROJECT
ASX Code: SEG
HIGHLIGHTS:
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842 metre aircore drilling program (20 holes) has been completed on two traverses covering two coincident gravity and magnetic features
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Drilling has intersected multiple phases of mafic intrusive rocks (gabbro and dolerite) that are largely coincident with the targeted gravity highs
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Sulphides have been identified in petrographic examination, including traces of chalcopyrite (copper sulphides) interpreted to be of magmatic origin
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This data provides key geological and lithological information for ongoing exploration programs
Key Facts:
Segue Resources Limited
ASX Code: SEG
Share price (10/12/15): 0.2¢ 52 week range: 0.1 - 0.9¢
Shares on issue: 2,639.8m Market cap.: $5.3m
Plumridge Nickel Project (100%1)
Location: Fraser Range, WA Tenement holding: 2,450km2
Salt Creek Project (100%)
Location: Eastern Biranup Zone, WA Tenement holding: 450km2
Deralinya Nickel Project (70%)
Location: Fraser Range, WA Tenement holding: 775km2
Pardoo Nickel Project (100%1)
Location: Pilbara, WA
Tenement holding: 330km2
1. Subject to farm-out joint venture.
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Figure 1: Plumridge Nickel Project Location Map
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The Salt Creek Complex (SCC) is a 150km long belt of intermediate-mafic intrusions that are inferred to have formed along an Archaean-Proterozoic suture. The intrusions are considered prospective for nickel, copper and PGE's, similar to those found at the Nova Bollinger and Nebo Babel nickel-copper deposits. The intrusions do not outcrop and are concealed below recent sedimentary sequences. However, they are clearly visible within processed magnetic imagery. The majority of the SCC is held by Independence Group NL/AngloGold Ashanti, with Segue the second largest tenement holder (Figure 2).
Figure 2: Salt Creek Project (red outline) over simplified geology
The SCC is currently a focus of exploration by Independence Group NL (IGO) after the discovery of significant mineralisation in September 2013 at the Beetlejuice Prospect, 60km north of Segue's Plumridge Project (aircore hole BJA301 intersected 4m @ 5.1% Ni, 2.5% Cu, 3.5g/t Pt, 4.7g/t Pd, 1.6g/t Au and 97g/t Ag).
Results of maiden aircore drilling programme
Through existing detailed magnetic surveys and the project scale gravity survey recently completed by Segue, two exploration targets were highlighted within the Salt Creek Nickel Project. The targets are broad residual gravity anomalies that occur over thickenings of the observed magnetic features. These areas were tested with two traverses of aircore drilling to provide initial geological and geochemical information to assist with the identification of any potentially 'fertile' intrusions that will form the basis for further exploration efforts by Segue in 2016.
The aircore drilling program comprised 20 holes (842 metres) on two traverses and covered the two coincident gravity and magnetic features (Figure 3). The drill holes reached an average depth of 42 metres and in all cases intersected and sampled fresh bedrock material. A younger sequence of sediments averaging 15-20 metres overlies the basement rock.
Figure 3: Aircore drilling programme over gravity contours
The drilling intersected three zones of mafic intrusive rocks that appear to be largely coincident with the targeted gravity highs. The intrusions range from fresh dolerite and gabbro that have undergone variable amounts of metasomatic alteration, to totally altered high metamorphic grade amphibolite (after mafic intrusion). This variation suggests that the SCC in this location has been emplaced in multiple phases over an extended period of time.
Traces of sulphides have been identified in both hand specimen and in petrographic analysis. These sulphides, including chalcopyrite, are interpreted as being of an igneous (magmatic) origin indicating that critical sulphur saturation has been reached as the magma crystallised (Figure 4), and thus confirming the potential of these rocks to form magmatic sulphide deposits.
Figure 4: Reflected light image from PAC052 showing small chalcopyrite grain within a poikilitic titanate grain (light grey). Darker grey are silicates (mostly hornblende, plagioclase). Width = 0.5 mm.
The results of this work provide the basis for ongoing programs of exploration. They demonstrate that the gravity anomalies provide a robust targeting tool in preference to the magnetic data and that aircore is an effective method to delineate the size and extent of the intrusions beneath the transported cover, whilst collecting critical litho-geochemical data.
For further information visit www.segueresources.com or contact:
Segue Resources Limited Mr Steven Michael Managing Director
T: +61 8 9383 3330
E: [email protected]
Competent Persons Statement
The information in this report that relates to Exploration Results is based on information compiled by Mr Peter Langworthy who is a Member of the Australian Institute of Geoscientists. Mr Langworthy has more than five years' experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking t o qualify as a Competent Person as defined in the 2012 Edition of the 'Australasian Code for Reporting of Exploration Results, Minerals Resources and Ore Reserves'. Mr Langworthy consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.