Exploration Permit for Minerals EPM 18635 Georgina 1 Annual Report for the period 25 October 2016 to 24 October 2017
Tenure Holder: Chinova Resources Cloncurry Mines Pty Ltd Author: D Jungmann
Date: November 2017
Exploration Permit for Minerals EPM 18635 Annual Report for the period 25 October 2016 to 24 October 2017
SUMMARY
Aim of Project
Exploration Permit for Minerals EPM 18635 Georgina 1 was obtained to explore for iron oxide-copper- gold mineralisation, copper-gold mineralisation, massive sulphide lead-zinc-silver deposits, and uranium mineralisation hosted either within granites or within sandstone or limestone horizons. More recently the resource authority has been assessed for and phosphate mineralisation within the Middle Cambrian Beetle Creek limestone units of the Georgina Basin.
Object of Report
This report documents the exploration on EPM 18635 conducted from 25 October 2016 to 24 October 2017.
Location
EPM 18635 is centred approximately 120 km southwest of Cloncurry.
Tenure
EPM 18635 was granted to Chinova Resources Cloncurry Mines Pty Ltd, formerly Ivanhoe Cloncurry Mines Pty Limited on 25 October 2011 for a term of five years. EPM 18635 was renewed on 28 October 2016 for an additional 3 years.
Datum
Data are presented in GDA94 Map Grid of Australia Zone 54 datum.
Summary of Work
Exploration on EPM 18635 from 25 October 2016 to 24 October 2017 was restricted to a review of the magnetotelluric (MT) survey completed in the previous reporting period.
Interpretation of the MT survey profile indicates there is no economic potential for phosphate mineralisation within EPM 18635. Depth to Proterozoic basement rocks is estimated to be between 300 m and 1000 m over the MT survey line and is considered too great to explore for Proterozoic base metal or gold mineralisation. No on ground exploration was completed in the reporting period.
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Exploration Permit for Minerals EPM 18635 Annual Report for the period 25 October 2016 to 24 October 2017
TABLE OF CONTENTS
1. INTRODUCTION ...... 4 2. LOCATION AND ACCESS...... 4 3. TENURE ...... 4 4. REGIONAL GEOLOGY ...... 7 5. LOCAL GEOLOGY ...... 9 6. PREVIOUS EXPLORATION ...... 9
6.1 Other Companies ...... 9 6.2 Chinova ...... 11
7. WORK DONE FROM 25 OCTOBER 2016 TO 24 OCTOBER 2017 ...... 12 8. PROGRESS OF WORK PROGRAM ...... 12 9. PROPOSED WORK FOR THE NEXT REPORTING PERIOD ...... 12 10. REFERENCES ...... 13
LIST OF FIGURES
Figure 1: EPM 18635 regional location ...... 5 Figure 2: EPM 18635 sub-block location ...... 6 Figure 3: EPM 18635 Georgina Project Location Map ...... 8 Figure 4: EPM 18635 GSQ 2015 surface geology and MT survey location ...... 10 Figure 5: Georgina North MT conductivity section ...... 11
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Exploration Permit for Minerals EPM 18635 Annual Report for the period 25 October 2016 to 24 October 2017
1. INTRODUCTION
This annual report documents exploration conducted over the 30 sub-blocks of Exploration Permit for Minerals EPM 18635 from 25 October 2016 to 24 October 2017.
The resource authority was identified as prospective for iron oxide-copper-gold mineralisation, copper- gold mineralisation and massive sulphide lead-zinc-silver deposits within the Proterozoic rocks of the Mount Isa Inlier; uranium mineralisation associated with either Proterozoic granites or within sandstone or limestone horizons of the Georgina Basin, and phosphate mineralisation within the middle Cambrian Beetle Creek limestone units of the Georgina Basin.
EPM 18635 forms part of Chinova Resources Pty Ltd’s (Chinova’s) Georgina Project area that comprises six resource authority’s (Figure 1). Chinova’s initial exploration focus within the Georgina Project area was palaeochannel uranium deposits within the Phanerozoic sediments of the Georgina Basin. The exploration focus is now on phosphate mineralisation within the Middle Cambrian limestones.
2. LOCATION AND ACCESS
EPM 18635 comprises two groups of sub-blocks which are centred approximately 125 km southeast of Mount Isa and 120 km southwest of Cloncurry (Figure 1). The sub-blocks of EPM 18635 lie within the Chatsworth and Trekelano Pastoral Leases.
The tenement area is characterised by open-wooded, semi-arid landscape and incised by intermittent ephemeral creeks and gullies.
Vehicle access is by the sealed Cloncurry-Dajarra Rd from Cloncurry to Duchess then via the Chatsworth-Phosphate Hill road south of Duchess. Road access is good from March to November with intermittent closure due to flooding and heavy rains possible from November to March. Station tracks can be used by four-wheel drive vehicles for access within the resource authority.
3. TENURE
EPM 18635 comprising 100 sub-blocks was granted to Chinova Resources Cloncurry Mines Pty Ltd (CRCM), formerly Ivanhoe Cloncurry Mines Pty Limited on 25 October 2011 for a term of five years. CRCM is a 100% owned subsidiary of Chinova Resources Pty Ltd (Chinova). Forty sub-blocks were relinquished in October 2015, with 30 more sub-blocks relinquished when the EPM was renewed on 25 October 2016 for a further three year term. The resource authority currently comprises 30 sub-blocks.
The sub-blocks are listed below and shown in Figure 2.
EPM 18635 Sub-blocks:
BIM Block Sub-blocks
Clon 1393 d e j k o p t u y z
Clon 1394 a b c d e f g h j k
Clon 1538 q r s t u v w x y z
Total = 30 retained sub-blocks
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Exploration Permit for Minerals EPM 18635 Annual Report for the period 25 October 2016 to 24 October 2017
Figure 1: EPM 18635 regional location
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Exploration Permit for Minerals EPM 18635 Annual Report for the period 25 October 2016 to 24 October 2017
Figure 2: EPM 18635 sub-block location
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Exploration Permit for Minerals EPM 18635 Annual Report for the period 25 October 2016 to 24 October 2017
4. REGIONAL GEOLOGY
The Neoproterozoic Georgina Basin is a broad intracratonic basin which straddles the Queensland and Northern Territory border. The Basin covers an area measuring 325,000 km2, of which 90,000 km2 are in Queensland (Withnal et al., 2012). In Queensland, the Basin crops out from north of Camooweal (Undilla sub-basin) to the Simpson Desert (Toko Syncline) and forms a belt between Duchess and east of Boulia (Burke River Structural Belt). The southeastern and southern margins of the Georgina Basin are obscured by the Jurassic to Cretaceous sedimentary rocks of the Eromanga Basin.
The Georgina Basin is underlain by Proterozoic basement rocks of the Arunta Complex, the Mount Isa Inlier and the Aljawarra Craton (Tucker et al., 1979) and consists of up to 5,000 m of Phanerozoic marine and non-marine siliclastics and carbonates. Deposition is considered to have been roughly continuous from the Neoproterozoic to the Ordovician. The Basin’s deformational history is evident in the sediments. Minor to moderate folding and faulting is evident throughout the Basin. The strongest folding, faulting and overthrusting activity occurred along the southern margin.
Chinova’s Georgina Project area (Figure 3) is situated within the Burke River Structural Belt (BRSB). The BRSB is a fault-bounded depositional basin measuring approximately 60 km long and 20 km wide (Figure 3) and underline by Proterozoic basement rocks of the Eastern Succession of the Mount Isa Inlier. Situated to the west of the BRSB is the Duchess Embayment, a small, shallow shelf basin located on a major basement high. Deposition within the BRSB consisted primarily of calcareous, and silica altered sediments of Phanerozoic age. These sediments were contained within the faulted margins of the Basin and may represent hinge lines of recurrent movement from the Upper Proterozoic to Cainozoic times (Russell and Trueman, 1971). Deformation of the Basin sediments is shown in north-south trending folds and faults which may have affected rocks up to Early Ordovician in age. These deformation events could be related to the Alice Spring Orogeny (450 Ma to 300 Ma; Haines et al., 2001). The fault networks bounding the BRSB are thought to be at a high angle and display little lateral movement (Russell and Trueman, 1971). Movement along this fault is considered to be predominantly vertical (Draper, 2007). The southern section of the BRSB is overlain by the Jurassic – Cretaceous sediments of the Eromanga Basin.
Previous companies have explored the edges of the Georgina Basin for phosphate since the 1960s. From 1966 to 1968 15 deposits were discovered along the margins of the basin including Duchess, Sherrin Creek, D Tree, Lady Annie and Wonarah (Russell and Trueman, 1971). The Phosphate Hill mine is located on the western margins of the BRSB within the middle Cambrian Beetle Creek Formation (Russell and Trueman, 1971). The eastern margin is much less explored and hosts no known deposits.
Parts of the Basin have been explored in the past for base metals. There is potential for carbonate hosted lead-zinc mineralisation (MVT type), mainly in the late Cambrian to Ordovician rocks of the Ninmaroo and Swift Formations (Davies et al., 2015).
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Exploration Permit for Minerals EPM 18635 Annual Report for the period 25 October 2016 to 24 October 2017
Figure 3: EPM 18635 Georgina Project Location Map
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Exploration Permit for Minerals EPM 18635 Annual Report for the period 25 October 2016 to 24 October 2017
5. LOCAL GEOLOGY
EPM 18635 is located within 15 km to the east of the Phosphate Hill Deposit (168.6 Mt @ 25.5% P2O5), and Australia New Agribusiness & Chemical Group Ltd Korella (19.3Mt @ 19% P2O5) and D10 Deposits (Figure 2).
Phosphate mineralisation occurs within the Middle Cambrian Beetle Creek Formation. This formation is divided into the Lower Siltstone Member and the Monastery Creek Phosphorite Member. The latter host significant phosphorate mineralisation as both calcareous phosphorite with phosphatic and fetid cherty limestones and chert beds; and siliceous phosphorite beds with intercalated cherty phosphorite, phosphatic cherty limestone, chert and minor phosphatic shale (Russell and Trueman, 1971). In addition, the Thorntonia Limestone unit which underlies the Beetle Creek Formation in the Burke River area is reported to be phosphatic and the host to several significant P2O5 resources in the north and northeast parts of the Georgina Basin.
EPM 18635 is located centrally over the Burke River Outlier sub-basin with the prospective Beetle Creek and Thorntonia Limestone units mapped to the west of EPM 18635 at Phosphate Hill, and the Thorntonia Limestone unit also mapped along the eastern margins of the Outlier, east of EPM 18635 (Figure 4). The sedimentary sequence is assumed to be continuous across the Burke River Outlier and therefore the prospective phosphate sequences should underlie EPM 18635.
6. PREVIOUS EXPLORATION
6.1 Other Companies
Historical exploration in the immediate area of the resource authority has consisted of drilling for phosphate enrichment and stream sediment sampling testing for base metal anomalism. A review of open file data has only located stream sediment sampling within the current bounds of EPM 15385 (Figure 4).
In 1968 Broken Hill South Limited (BHS) conducted exploration for phosphate over a large area on the western edge of the BRSB and drilled a number of percussion / rotary holes in their Duchess Prospect area (Figure 4). No phosphate section was intersected and no assays were done (Johns, 1970).
In 1971 Utah Development Co (Utah) evaluated the potential of the area for stratiform lead and zinc mineralisation through an extensive stream geochemical survey and a reconnaissance geological mapping program. Several samples were collected within the current boundaries of EPM 18635. Following a full assessment of the results, it was decided that the area was not prospective for this style of mineralisation (Duncan, 1972).
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Exploration Permit for Minerals EPM 18635 Annual Report for the period 25 October 2016 to 24 October 2017
Figure 4: EPM 18635 GSQ 2015 surface geology and MT survey location
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Exploration Permit for Minerals EPM 18635 Annual Report for the period 25 October 2016 to 24 October 2017
6.2 Chinova
Chinova’s focus on EPM 18635 was initially for paleochannel uranium mineralisation in the Jurassic sands and gravels of the Eromanga Basin that overly the Cambrian and Ordovician limestones of the Georgina Basin, and base metal and gold mineralisation in the underlying Proterozoic basement.
CRCM drilled two RC holes in August 2008 approximately 7 km west of the northern sub-blocks of EPM 18635 (Figure 4). Drilling targeted a geophysical feature (IOCG target) in the Proterozoic basement as well as testing for uranium and phosphate mineralisation in the overlying sediments. Holes were planned to 500 m vertical depth (estimated depth to basement) however the hole were abandoned at 370 m and 103 m respectively as significant water was intersected in the holes. No significant phosphate or uranium was encountered in the holes. One of the holes was deepened with a diamond tail in 2010 to test the basement IOCG target. The hole intersected basement at approximately 755 m.
Between April and May 2015 CRCM conducted an air core drilling program on EPM 17417 within the northern part of the Georgina Project area immediately south of the northern sub-blocks of EPM 18635 (Figure 4). The program tested palaeochannels identified from airborne EM data for uranium mineralisation. Results were disappointing with no palaeochannel sands or uranium drilled. Holes intersected limestone effectively from surface with the younger Eromanga Basin sediments absent.
Subsequent to the assessment of the project for uranium a shift in policy resulted in Chinova abandoning further uranium exploration.
During 2016 target generation work was conducted over EPM 18635 as party of a broader assessment of the Georgina Basin project area for phosphate mineralisation. As part of this work an 8.5 km traverse of magnetotellurics (MT) was surveyed over the southern blocks of the resource authority between 29 August and 2 September 2016 (Figure 4). The primary objective of the MT survey was to map the depth of the Georgina Basin within this part of EPM 18635 to determine the potential for economic phosphate horizons.
The results of the survey indicate a basin depth of approximately 1000 m on the western end of the MT survey line, shallowing to approximately 300 m to the east (Figure 5). The near surface is reasonably conductive with some deeper conductive zones present along the line, however no features of interest are noted in the MT inversion.
Based on the MT results it was determined, if present at all the prospective phosphate horizons would be too deep to be economic within the southern blocks of the resource authority. The depth of the basement also precludes exploring for base metal mineralisation in the underlying Proterozoic lithologies
Figure 5: Georgina North MT conductivity section
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Exploration Permit for Minerals EPM 18635 Annual Report for the period 25 October 2016 to 24 October 2017
7. WORK DONE FROM 25 OCTOBER 2016 TO 24 OCTOBER 2017
A review of the MT survey conducted during the 2016 reporting period indicates there is no economic potential for phosphate mineralisation within EPM 18635. Depth to Proterozoic basement rocks is too great to explore for Proterozoic base metal or gold mineralisation. No on ground exploration was completed in the reporting period.
8. PROGRESS OF WORK PROGRAM
Under the conditions of the permit, the conditioned period for the work program is years 6 and 9 of the permit from 25 October 2016 to 24 October 2019 with assessment at the end of the period. The work program from 25 October 2016 to 24 October 2019 includes:
• Review existing datasets including magnetic and radiometric data, open file reports and water bore data • Reconnaissance mapping and sampling (XRF analysis for phosphate) of prospective phosphate stratigraphy • Commence work on a 3D model of basin stratigraphy • Broad spaced air core or reverse circulation drilling of prospective areas to define the stratigraphic sequence • XRF analysis of all drilled intervals • Review and define areas for follow-up drilling programs • Revise 3D basin stratigraphy model based on new drill hole information • Additional air core or reverse circulation drilling over prospective areas closing drill spacing down as required • IP and/or EM surveying over base metal targets
CRCM has reviewed some existing datasets over EPM 18635 during the initial year of the renewal term. Additional assessment will be required to define drill targets.
9. PROPOSED WORK FOR THE NEXT REPORTING PERIOD
Work to be conducted in the next reporting period from 25 October 2017 to 24 October 2018 will consist of a review of the MT data, open file reports and water bore data for potential base metal accumulation in the Cambrian limestones. This will remain a low priority target, and it is unlikely that any targets will be tested in the next reporting period.
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Exploration Permit for Minerals EPM 18635 Annual Report for the period 25 October 2016 to 24 October 2017
10. REFERENCES
Davies M., Woodfull C., Stuart-Smith P., 2015: New SEDEX and MVT Provinces discovered under shallow cover in the Southern Georgina Basin Poster. SEG Conference, September 2015
Duncan RK., 1972: Report on exploration activities on A-P 933M, Boulia, Queensland, To December 31, 1971.Utah development Co. Unpublished report held by the Geological Survey of Queensland QDEX Reports System as CR4143
Draper J., 2007: Georgina Basin: potential for petroleum discovery. Queensland Government Mining Journal June 2007:76-88
Haines PW., Hand M., Sandiford M., 2001: Palaeozoic synorogenic sedmentation in central and northern Australia: A review of distribution and timing with implications for the evolution of intracontinental orogens. Australian Journal of Earth Sciences 48:911-928
Johns AR., 1970: NW QLD (Ten areas), Annual report on exploration for 1969. Broken Hill South Limited. Unpublished report held by the Geological Survey of Queensland QDEX Reports System as CR4697.
Russell RT., Trueman NA., 1971: The geology of the Duchess Phosphate Deposits North Western Queensland, Australia. Economic Geology 66:1186-1241
Tucker DH., Wyatt BW., Druce EC., Mather SP., Harrison PL., 1979: The upper crustal geology of the Georgina Basin region. BMR Journal of Australian Geology and Geophysics 4:209-226
Withnall I.W., Cranfield L.C., 2012: Queensland Minerals Geological Framework
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