Horseshoe Metals (ASX: HOR) has delivered a high confidence maiden copper JORC Resource for the Rinaldi prospect, which is part of the Kumarina Copper Project in the Peak Hill Mineral Field of Western Australia.
The resource is 835,000 tonnes at 1.3% copper for 10,600 tonnes of contained copper, at a 0.5% copper cut-off grade. The estimate was undertaken by H & S Consultants Pty Ltd.
Importantly with the resource is it's confidence levels, with 415,000 tonnes at 1.46% copper Measured, 307,000 tonnes at 1.16% copper Indicated and 114,000 tonnes at 0.9% copper Inferred.
Another benefit is that the resource would amendable to an open pit operation, as it occurs from 2 metres to 120 metres depth.
The resource has the potential as well to grow with additional exploration, as mineralisation remains open along strike in both directions and down dip, with additional drilling to target mineral resource extensions will be undertaken in the next stage of exploration.
Neil Marston, managing director, told Proactive Investors today that the company now a a significantly enhanced understanding of the geological settings of the area.
"We are now in a position to follow up copper mineralisation near Rinaldi and other tenement areas due to an increased understanding of the structures."
Testing for extensions at Rinaldi
Horseshoe will undertake additional drilling at Rinaldi to test for extensions to the mineralisation within the north-south fault zone. A small number of holes drilled by the company have intersected copper mineralisation within the interpreted fault zone at depth in a dolerite sill.
Drilling to identify copper mineralisation within the dolerite sill/fault zone contact will be undertaken this year.
A soil geochemical survey has also identified several anomalies, with follow up exploration planned such as reconnaissance drilling in the coming field season.
Mineralisation at Rinaldi
The mineralisation at Rinaldi is hosted within a north-south oriented sub-vertical fault zone, one of several such faults identified within the company's tenement by a 2011 aeromagnetic survey.
An important factor of the near-surface deposit is that the higher grade zone of mineralisation which contains over 98% of >1.0% copper mineralisation is concentrated between 7267925mN and 7268275mN, a distance of about 350 metres.
The company said that it is pleased with the progress of exploration at Rinaldi which has culminated in this maiden Mineral Resource estimate.
Horseshoe Lights resource update pending
Over at the company's Horseshoe Lights project where 10,000 metres of drilling was completed during 2012, the focus is now on an update to the resource estimate.
Much of the Quality Assurance/Quality Control work on the historical parts of the database has now been completed, with an updated resource expected towards the end of March 2013.
Exploration at the project in 2013 will have a dual aim, which includes:
- Deep, high grade copper/gold zones - potentially located down dip and down plunge of the Main Zone - of sufficient grade to potentially support underground mining; and
- Exploration targets outside of the immediate pit area which have not been adequately tested by previous exploration efforts.
Horseshoe Lights currently has a resource of 8.6 million tonnes at 1.06% copepr and 0.13g/t gold containing 91,000 tonnes copper metal and 37,400 gold ounces (0.5% cutoff).
Horseshoe has only just scratched the surface of an extensive tenement holding at Kumarina which covers 217 square kilometres of largely unexplored land, and a key takeaway from today's maiden resource is the high confidence levels.
Rinaldi has yielded 835,000 tonnes at 1.3% copper for 10,600 tonnes, which is predominately hosted within the high confidence Measured and Indicated categories.
Considering that this resource is near-surface and open along strike in both directions and down dip, additional exploration during the 2013 field season has the potential to build the critical mass of tonnage.
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