ASX ANNOUNCEMENT - 5 October 2016
Assets, Experience, Growth
MAIDEN EXPLORATION PROGRAM COMMENCES AT MONUMENT GOLD PROJECT, WA
Geophysical IP survey underway with drilling to commence shortly at highly prospective Korong Prospect
HIGHLIGHTS
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17‐hole drilling program (3,500m) will test two high priority targets at the Korong Prospect at the Company's 100%‐owned Monument Gold Project, near Laverton Western Australia.
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Drilling program to comprise 12 diamond drill holes with RC pre‐collars and five reverse circulation ("RC") drill holes.
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All contracts and approvals in place and site works complete. Drilling to commence within a week.
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Geophysical crew on site progressing an Induced Polarisation survey ("IP") to better define targets on the lower BIF Horizon, which is a key host for high‐grade gold mineralisation at the nearby Westralia deposit, part of Dacian Gold's (ASX: DCN) 3.3Moz Mount Morgans Project.
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Drilling is initially targeting the Korong BIF ("Banded Iron Formation") where historical drilling has only partially tested a strongly mineralised BIF horizon. Historical drilling intersections include (see Appendix 1 for details):
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Deeper diamond drilling will test the second high priority target located in the footwall of the Korong BIF.
Syndicated Metals Limited (ASX: SMD - "Syndicated" or "the Company) is pleased to announce the commencement of its maiden exploration program at its 100%‐owned Monument Gold Project in Western Australia (Figure 1).
The Project comprises a 210km2 tenement package located approximately 55km west of Laverton in the world‐class Laverton gold district of WA, which hosts numerous multi‐million ounce gold mines such as Sunrise Dam (+10Moz), Wallaby (+8Moz), Granny Smith (+2Moz) and Lancefield (+2Moz). Importantly, the project covers a 16km strike length of the same BIF (banded iron formation)/porphyry sequence which hosts the key Westralia and Morgans North deposits at Dacian Gold's Mount Morgans Project (3.3Moz).
Figure 1 - Location of the Monument Gold Project showing regional geology and nearby mining operations
KORONG BIF TARGET
The Korong BIF target has been the main focus of historical drilling within the Monument Gold Project. The drilling has intersected a consistently gold mineralised BIF unit that extends to the surface, but in general is considered to be inadequately tested. Drilling results include:
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MK036 16m @ 2.80g/t Au (Includes 8m @ 5.53g/t Au)
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MKRC040 10m @ 2.96g/t Au (Includes 5m @ 4.60g/t Au)
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MK002 8m @ 3.50g/t Au (Includes 4m @ 4.70g/t Au)
MKRC011 14m @ 3.20g/t Au
MK012 4m @ 5.30g/t Au
Examination of the historical RC and diamond drilling results demonstrate good continuity of mineralisation where the BIF has been fully intersected (Figure 2). Importantly though, it also suggests that in a lot of cases the drilling has not penetrated the targeted BIF horizons and that the intersections remain incomplete (Figure 3).
The planned drilling program will combine in‐fill and step‐out drilling as well as extending previously drilled holes that have been stopped in mineralisation.
Figure 2 - Korong Prospect: Interpreted Geological Cross Section 1000mN
Figure 3 - Korong Prospect: Interpreted Geological Cross Section 1075mN
LOWER BIF TARGET
The Lower BIF will be targeted by a series of deeper diamond holes as an initial test. This position is considered highly prospective to host high‐grade gold mineralisation in a similar way to Dacian's Westralia Deposit, where a series of BIF's lower in the stratigraphy have returned high‐grade gold results.
In addition to this initial drill testing, a Dipole‐Dipole IP survey is currently underway at Korong aimed at both mapping out the lower BIF horizon and identifying zones that may have a higher sulphide content, which represents a possible vector to accumulations of gold mineralisation.
The survey, which comprises 62 lines for 137 line kilometres, is designed to test for chargeable bodies (containing sulphides) to a depth of approximately 250m. Based on the effectiveness of this initial IP survey at Korong, consideration will be given to extending the program to the north.
REGIONAL EXPLORATION
While the grant of the Exploration Licence is being finalised, all of the regional datasets are being compiled and used as a basis for targeting. These datasets include sourcing high quality third‐party airborne magnetic survey data, compiling and interrogating existing geochemical datasets and commissioning a structural geological study.
MANAGEMENT COMMENT
Syndicated Metals' Managing Director, Mr Andrew Munckton, said that the start of the Company's maiden gold exploration program at the recently acquired Monument Project was an exciting milestone.
"This signals the beginning of a busy period for the Company as we test both the upper and lower BIF targets at the Korong Prospect and begin to assess the broader potential of the lower BIF target through an IP geophysical survey which is already well underway," he said.
"Our geological understanding of the potential of the lower BIF unit has been greatly assisted by the outstanding work carried out by our neighbour, Dacian Gold, and we look forward to building on this knowledge base as part of our maiden exploration program at the Monument Project.
"Even by themselves, the historical intersections within the upper BIF unit at the Korong Prospect represent an exciting and valid target for follow‐up drilling. When combined with the broader potential of the area, both at depth and along strike, the Monument Project represents a compelling exploration opportunity in the WA gold sector - and we are very much looking forward to seeing the results of this program as it begins to unfold."
ENDS
For further information:
Investors
Andrew Munckton - Syndicated Metals Mobile: 0435 635 598
Media
Nicholas Read - Read Corporate Mobile: 0419 929 046