Horseshoe Metals (ASX: HOR) has started a down hole electromagnetic survey (DHEM) at its wholly-owned Horseshoe Lights Project in Western Australia to test for potential massive sulphide copper-gold mineralisation.
Five holes are planned to be used for the DHEM survey to test for off-hole conductors that may represent massive sulphide copper/gold mineralisation, with depths of up to 706 metres to be tested, targeting the Narracoota Formation that hosts both Horseshoe Lights and Sandfire Resources' (ASX: SFR) DeGrussa copper gold mine.
The Horseshoe Lights Project is located 75 kilometres west-northwest of DeGrussa.
Adding to the prospectivity of the area, the Narracoota Formation is largely untested beneath the overlying Ravelstone Formation.
An interpretation of the DHEM survey results is expected to be available in August.
The company had in June upgraded the high grade copper resource at Horseshoe Lights by 40% to 12.85 million tonnes at 1% copper, and 0.1g/t gold for 128,600 tonnes of contained copper and 36,000 gold ounces, using a 0.5% copper cut-off grade.
In addition, the Resource for surface stockpiles and tailings has been estimated at 1.7 million tonnes at 0.52% copper for a further 8,800 tonnes of copper, increasing the overall inventory to 148,000 tonnes.
Highlighting the prospectivity of Horseshoe Lights, historical production from the Horseshoe Lights copper-gold mine was 313,000 gold ounces and 54,800 tonnes of copper.
Although its only early days for HOR in the hunt for massive sulphide copper-gold mineralisation at Horseshoe Lights, the key is that the project is within the Narracoota Formation - which hosts Sandfire Resources' DeGrussa copper gold mine.
The highly anticipated results are expected to be available in August, and if there are any indications of massive sulphides then there is the potential for a positive re-rating in the stock from the current $0.05 level.
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.