Syndicated Metals' (ASX: SMD) high priority Andy’s Hill IOCG target within the Kalman Joint Venture has been underpinned by the detection of strong electromagnetic (NYSE:EM) conductors.
Adding to the lure of the target, a Queensland Government co-funding drilling grant of around $60,000 was awarded to JV partner Cerro Resources (ASX: CJO), which is estimated to be 50% of the anticipated direct drill cost.
Two anomalies were resolved by the EM survey and the data suggests that at least part of the deeper source may be a strong to very strong conductor.
The company plans to test the deeper EM conductor and magnetic anomaly with a drill hole aimed at intersecting a point more than 200 metres below the surface and is expected to commence once approvals have been finalised.
The company is currently undertaking a drill program at Kalman targeting shallow open-pittable copper-gold and molybdenum-rhenium that could assist in reaching a resource threshold that would boost the case for early mine development at Syndicated's Mount Isa projects.
Tantalisingly, five holes of a planned 25 hole program targeting shallow copper-gold mineralisation at the Kalman deposit have now been completed, with the highly anticipated results expected around the end of August.
The Andy's Hill prospect is located 8 kilometres west of the Kalman copper-gold-molybdenum-rhenium deposit within the Kalman joint venture with Cerro Resources.
The prospect comprises a zone of strong “red-rock” alteration and copper soil anomalism coincident with a strong magnetic anomaly and represents a prime iron-oxide copper-gold (IOCG) target.
A previous explorer drilled at a location between the two possible EM sources in 1976 and intersected 125 metres averaging 0.12% copper.
The company is building on its already significant metal resource inventory in the Mount Isa region where it now controls tenements covering an area of over 4,000 square kilometres.
Korea Zinc Company, through its Australian subsidiaries, holds a 13% interest in Syndicated.
Originally published at: http://www.proactiveinvestors.com.au/companies/news/18380/syndicated-metals-to-drill-test-andys-hill-iocg-target-within-kalman-copper-molybdenum-deposit-18380.html