The high priority volcanogenic-hosted massive sulphide VHMS exploration target, identified via geophysical study, extends 800 metres towards the south east of the existing open pit.
The target is considered to be significant due to the presence of a moderately high chargeability anomaly identified on Line 3 of the Dipole-Dipole Induced Polarisation Survey completed in 2011 and the presence of a coinciding gravity high anomaly identified by the topographically levelled gravity survey completed in late 2012.
Also, historical drilling in the high priority VHMS exploration target area identified the presence of anomalous copper within the Narracoota Formation.
The target is 400 metres along strike from the Horseshoe Lights mine, and potentially represents a new zone of mineralisation masked by sedimentary cover over the Ravelstone Formation.
Drilling is expected to start in April with testing of the gravity high VHMS target being a priority. This will be followed by shallow drilling to test the geochemical targets.
The Horseshoe Lights project includes the old open pit of the Horseshoe Lights copper-gold mine which operated intermittently between 1946 and 1994, producing over 300,000 ounces of gold and 54,000 tonnes of copper.
The Horseshoe Lights ore body is interpreted as a deformed VHMS deposit that has undergone supergene alteration to generate the gold-enriched and copper-depleted cap that was the target of initial mining.
The deposit is hosted by quartz-sericite and quartz-chlorite schists of the Lower Proterozoic Narracoota Formation, which also host Sandfire Resources' DeGrussa Cu-Au mine.
The company's other project includes the Kumarina copper project, where it recently delivered a high confidence maiden JORC Resource at 835,000 tonnes at 1.3% copper for 10,600 tonnes of contained copper at 0.5% cut off grade.
It had a cash balance of $1.13 million at the end of last quarter.
Proactive Investors Australia is the market leader in producing news, articles and research reports on ASX "Small and Mid-cap" stocks with distribution in Australia, UK, North America and Hong Kong / China.