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  • Arc Exploration Exercises Options On New South Wales Gold Projects 0 comments
    Jun 30, 2014 8:09 PM

    Arc Exploration (ASX:ARX) has exercised its options to farm-in to the Junee and Oberon gold projects owned by New South Resources in New South Wales.

    The nearby Northparkes and Cadia districts highlight the potential for major exploration success and major discoveries.

    Northparkes, owned by China Molybdenum Co., Ltd (CMOC) and Sumitomo Group, produced 55,368 tonnes of copper and 67,150 ounces of gold in 2013 while Newcrest Mining's (ASX:NCM) Cadia operations produced 446,879 ounces of gold and 53,912 tonnes of copper in the financial year ended 30 June 2013.

    A review of historical and its own work have recognised the potential to increase the known gold resources on these properties and host other deposit styles, including porphyry gold-copper.

    Junee has a JORC Resource of 77,000 ounces of gold while Oberon hosts 150,000 ounces. The company can earn up to 80% in the two projects.

    "The decision to exercise our options to Farm-in on these two projects consolidates a firm foothold for ARX in a major gold and copper producing province that has excellent potential for further discoveries and growth," managing director Dr Jeffrey Malaihollo said.

    "Initial work programs are aimed to generate new targets on both projects by applying the latest knowledge and exploration technologies to the detailed geophysical and geological databases established by NSR and previous explorers.

    "We need only look to the nearby Northparkes and Cadia districts to highlight the potential for major exploration successes through the application of new knowledge and persistence in a mature exploration environment."

    Farm-in Details

    Under the farm-in agreement, Arc can earn a 51% interest, in one or both projects, by sole funding $500,000 within two years on each project it elects to progress.

    It can then increase this to 80% in one or both projects, by sole funding a further $580,000 within a further one year on each project it elects to progress.

    The company had secured the one year option period on both projects last year by committing to carrying out a minimum expenditure of $100,000 on Junee and $135,000 on Oberon.

    Junee and Oberon

    Both projects occur in the Lachlan Orogen, a complex geological province endowed with world-class gold and gold-copper deposits.

    The Oberon Project is located close to existing mine operations and development infrastructure near the major regional centre of Bathurst.

    It comprises EL 6525 and EL 8110 that cover a total area of about 171 kilometres.

    This covers Siluro-Devonian and Ordovician volcanic rocks of the Hill End Trough and the Macquarie Volcanic Arc and is located on the eastern side of the Lachlan Orogen.

    The Siluro-Devonian volcanosedimentary rocks in this region are host to VMS-related gold-base metal (McPhillamys, Lewis Ponds) and orogenic gold-vein (Hill End, Lucknow) deposits.

    Ordovician volcanic rocks within the project area are of a similar age and composition to those hosting the multiple gold-copper porphyry and gold-copper skarn deposits found in the nearby Cadia district.

    The Oberon Project area is therefore prospective for similar styles of mineralisation.

    Carboniferous granites intrude both of the older rock sequences and the edges of these intrusions are prospective for gold skarn deposits (Lucky Draw, Browns Creek).

    EL 6525 also contains the 150,000-ounce Murphys gold where historic drilling has produced some broad low-grade gold intercepts including 49 metres at 0.75g/t gold, 23 metres at 1.05 g/t gold and 34 metres at 0.62 g/t gold.

    Recent reconnaissance rock chip sampling by Arc has highlighted the potential for porphyry copper-gold resources with samples from the Holmwood and Native Dog prospects returning up to 7.2% copper and 4.07g/t gold.

    In addition, a sample from the historic Phoenix mine workings assayed 18.2% zinc, 9.27% lead, 1.56% copper, 1.26 g/t gold and 240 g/t silver, demonstrating gold-silver-rich VMS potential.

    Junee is located close to existing mine operations and development infrastructure near the major regional centre of Wagga Wagga.

    It comprises Exploration Licences EL 6516, 6658, 6768 & 8152 that cover a total area of about 87 square kilometres.

    These tenements straddle the major regional Gilmore Fault Zone and contain rocks of the Junee-Narromine Volcanic Belt, part of the highly prospective Ordovician-Early Siluran Macquarie Volcanic Arc in the Lachlan Orogen.

    Large porphyry-related gold and gold-copper deposits, such as Northparkes, Gidginbung and Cowal, occur along this fertile volcanic belt and their distribution is believed to be spatially related to the Gilmore Fault Zone and its associated fault splays.

    EL 6516 in particular contains the 77,000-ounce Dobroyde gold deposit where historic drilling has intersected up to 22 metres at 37.3 grams per tonne gold, 16 metres at 10.5g/t gold and 6 metres at 18.2g/t gold within a low-grade mineralisation envelope.

    Analysis

    Exercising the option to earn-in grants Arc Exploration two projects that each host an advanced gold target and excellent potential to find new gold and copper-gold resources within a major gold and copper producing province in New South Wales.

    Northparkes, owned by China Molybdenum Co., Ltd (CMOC) and Sumitomo Group, produced 55,368 tonnes of copper and 67,150 ounces of gold in 2013 while Newcrest Mining's (ASX:NCM) Cadia operations produced 446,879 ounces of gold and 53,912 tonnes of copper in the financial year ended 30 June 2013.

    These provide potential exploration upside and the "blue sky" for Arc given the size of the nearby discoveries.

    Its initial work programs will use modern knowledge and technology on existing geophysical and geological databases to generate new targets.

    Arc is capitalised at less than $4 million and also boasts large scale copper gold porphyry projects in Indonesia.

    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.

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