ASX ANNOUNCEMENT - 24 October 2016
Assets, Experience, Growth
DRILLING UNDERWAY AT MONUMENT GOLD PROJECT, WA
Strong results from geophysical IP survey support drill targeting at Korong Prospect
HIGHLIGHTS
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RC drilling underway at the Korong Prospect at the 100%‐owned Monument Gold Project, near Laverton Western Australia. Diamond drilling to commence shortly.
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The first RC holes will provide precollars for the intial two diamond holes which will target 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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A total of 12 diamond holes are planned to test the upper BIF horizon and penetrate the full width of the underlying Korong Ultramafic unit.
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A number of additional Reverse Circulation drill holes are designed to in‐fill the mineralisation in the upper BIF horizon.
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First assay results from the overall 3,500m program expected within 2‐4 weeks.
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Initial results from the Stage 1 Induced Polarisation ("IP") survey have provided strong geophysical support for the Korong Prospect drilling.
Syndicated Metals Limited (ASX: SMD - "Syndicated" or "the Company) is pleased to advise that RC drilling has commenced at Korong and diamond drilling is scheduled to commence this week at its 100%‐owned Monument Gold Project in Western Australia (Figure 1) as part of its maiden exploration drilling program.
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).
The project covers a 16km strike length of the same BIF (banded iron formation)/porphyry sequence which hosts the key Westralia and Morgan's North deposits at Dacian Gold's (ASX: DCN) Mount Morgan's Project (3.3Moz) (refer Dacian Gold announcement 25 July 2016).
Figure 1 - Location of the Monument Gold Project showing regional geology and nearby mining operations
DRILLING UPDATE
Reverse Circulation drilling commenced at the Monument Project on 20 October, with the RC rig initially drilling a water bore to provide water for the diamond drilling operations before proceeding to drill pre‐ collars for the first two diamond holes (see Figure 2).
The RC and diamond holes will test both the Korong upper BIF target, which has been the main focus of historical drilling and deeper, additional BIF and sulphide vein targets within the Korong Ultramafic unit.
Historical drilling has intersected a consistently gold mineralised upper BIF unit that extends to the surface, but in general is considered to be inadequately tested. Historical 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 upper BIF has been fully intersected (Figure 2).
The Lower BIF(s) and sulphide vein targets located deeper in the stratigraphy will be tested by a series of deeper diamond holes as an initial program to determine the extent of any additional mineralisation. This position is considered highly prospective to host high‐grade gold mineralisation in a similar geological setting to Dacian's Westralia Deposit, where a series of BIF units within the Ultramafic have returned high‐ grade gold results.
Importantly, the historical RC drilling at Korong completed in the 1980's and early 1990's, in many cases did not penetrate the targeted upper BIF horizon and the intersections remain incomplete (Figure 3).
Figure 2 - Korong Prospect: Interpreted Geological Cross Section 1000mN
Figure 3 - Korong Prospect: Interpreted Geological Cross Section 1075mN
GEOPHYSICAL SURVEY UPDATE
A ground based Induced Polarisation ("IP") survey is currently being conducted over the Korong prospect by Zonge Engineering. The IP survey covers approximately 4.0km of strike length of the prospective Korong Ultramafic stratigraphy.
IP lines are surveyed at 400m line spacings over the entire strike length. Above the Korong historical drilling infill IP lines to 200m spacing were completed to allow more detailed comparison between historical drilling results and the IP survey. All lines were completed using 100m spaced dipoles for transmitter and receiver locations.
Results for the first 10 lines (total survey is 13 lines) have been received (see Figure 4). The Results received to date indicate a strong IP response over Korong associated with the Korong Ultramafic unit with weaker responses in other parallel units south of Korong. The strong Korong response remains open to the north where further surveying is underway (final 3 lines at 400m line spacing).
The IP survey at Korong has reinforced earlier results of a single line of IP completed over Korong in 2011 which indicated a strong IP response from the Footwall (south eastern) side of the Korong Ultramafic.
RC and diamond drilling being conducted at Korong currently will test the IP response to a depth of approximately 300 metres below surface.