Syndicated Metals (ASX:SMD) has intercepted wide zone of chalcopyrite (copper sulphide) at its Andy Hills IOCG target, eight kilometres west of the Kalman Cu-Au-Mo-Re deposit.
Promisingly, Hole AH-001 was drilled to a depth of 494 metres, initial assays have returned up to 1.3% copper and 0.5g/t gold as well as up to 0.21% Lanthium.
This would provide further credence that Syndicated may be on the cusp of a new IOCG field in the Mount Isa craton, similar in style to the Ernest Henry deposit, located 35 kilometres north east of Cloncurry in Queensland.
Russell Davis, managing director of Syndicated Minerals said "the drilling had intersected the alteration and mineralisation at the predicted level and confirmed the considerable potential of this target.
“We now await the remainder of the assay results which are expected in late January and will conduct a down-hole EM survey before planning a follow up program for 2012.” he said.
Andy's Hill background
At Andy’s Hill a surface zone of strong “red-rock” alteration and copper soil anomalism is coincident with a strong magnetic anomaly and a ground EM anomaly.
A diamond drill hole completed by a previous explorer in 1976 intersected 125 metres averaging 0.12% copper but is considered to have terminated above the interpreted positions of the deeper EM and magnetic anomalies.
Syndicated received co-funding grant from the Queensland Government for drilling at Andy's Hill.
Conclusions & follow-up
These results constitute a significant exploration intersection within a new IOCG field in the Mount Isa craton.
The presence of +400 metres of strong redrock-magnetite alteration, which is open at depth, containing base metal sulphides throughout with a rare earth element signature are considered important ingredients for this style of deposit.
As drill hole AH-001 intersected strengthening copper mineralization at the expected position of the EM conductor further down hole EM will now be used to assist in targeting the next stage of drilling into this large anomaly.
This drill program is considered to have demonstrated the significance of the Andys Hill magnetic anomaly and enhanced the prospectivity of its “sister” anomaly at Overlander, which has comparable surface geology overlying a magnetic anomaly of similar size and tenor.
The results at Andy's Hill have added considerably to the regional potential for Syndicated based on discoveries to date and the results from Andy's Hill. It has a pipeline of prospects, that must be considered very strong for further discoveries, including: Pelican, Serendipity, Python, HB and Dronfield.
Syndicated is focused on building a long-term base metals business based on its interests in the Mount Isa region. Andy’s Hill has the potential to add significantly to this strategy.