IMX Resources (ASX/TSX:IXR) will commence a fascinating diamond drilling program under the Cairn Hill Mine in early April looking for copper and gold mineralisation.
Iron Oxide Copper Gold mineralisation at the Cairn Hill mine is open at depth, below resource and historical drilling.
Geological mapping and structural studies have identified optimal target zones 250 metres beneath the mine floor.
While Cairn Hill is mined primarily for magnetite iron, the copper and gold content of the magnetite accounts for approximately one third of the production value.
The deposit is geologically classified as a magnetite IOCG and was formed at a similar time as the more famous hematite hosted copper-gold ore bodies at Olympic Dam and Prominent Hill.
At Cairn Hill, the best copper and gold grades occur where the magnetite rock is thickened by steeply plunging folds.
Two diamond core drill holes (each to 550m drill depth) will drill test the two target zones below Pit 1 and below planned Pit 2.
These two targets have been identified as having optimal conditions for the structural thickening after recent consultant structural mapping of Pit 1 and are supported by detailed magnetic modelling ('inversion').
The third target will drill test a strong magnetic anomaly 1 kilometre west of the Cairn Hill mine along strike of the main copper-gold-magnetite lode.
The third hole may perhaps hold the most promise given the strength of the magnetic anomaly despite being covered by over 250 metres of sediments.
It represents a large IOCG target and a possible extension to Cairn Hill.
Cairn Hill backround
IMX operates and owns 51% of the Cairn Hill Mining Operation, located 55 kilometres south-east of Coober Pedy in South Australia, where it produces a premium coarse-grained magnetitecopper-gold DSO product at a rate of 1.8Mtpa.
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