Carawine sits back as partner IGO starts Fraser Range drilling
Link copied to
Carawine’s partner IGO has started diamond drilling targeting nickel-copper mineralisation on the Red Bull tenement within their Fraser Range joint venture project.
The drill program targets two conductors identified from moving-loop electromagnetic surveys that are interpreted to be hosted by mafic intrusions within the southern continuation of the Nova-Bollinger deposit host sequences.
Carawine Resources (ASX:CWX) notes that the program will consist of two drill holes, each about 600m in length.
“We’re pleased to see IGO on the ground and drilling so soon after identifying these targets at Red Bull,” managing director David Boyd said.
“The two targets are interpreted to be within prospective host rocks, and have a similar conductivity to massive sulphide mineralisation associated with the Nova-Bollinger deposit, which is just 30km up the road.
“They are considered to be compelling nickel-copper targets.”
IGO (ASX:IGO) currently holds a 70% interest in the joint venture tenements and is sole funding exploration to 30 June 2022 to earn an additional 6% interest.
Notably, the program marks the second project where a major operating partner is funding and managing exploration while the company retains significant exposure to any upside, all whilst Carawine focuses its efforts on its Tropicana North gold project.
The two-hole drill program, which is expected to take at least four to six weeks to complete, will test the RB_B and RB_C conductors on the northern Red Bull tenement.
Conductor RB_C has a high conductance of about 5,500S, and is modelled as a 275m by 275m plate dipping northeast from 320m below surface. Conductor RB_B has moderate conductance of about 2,500S, modelled as a 250m by 350m sub-vertical plate dipping east from 330m below surface.
Both conductors were identified by IGO from a low temperature SQUID MLEM survey over an area of the interpreted southern continuation of the ‘Snowys Dam Formation’ lithostratigraphic package which hosts the Nova-Bollinger deposit.
Modelling shows that RB_B and RB_C are within low magnetic bodies, which are most likely to be mafic intrusions within the Snowys Dam Formation.
Relogging of historical diamond hole REDD004, which targeted the RB_A conductor, has confirmed the source of the conductor as graphite-pyrrhotite gneiss along with intervals of mafic intrusive rocks containing traces of magmatic sulphide in the hole – consistent with IGO’s magnetic inversion model.
The Fraser Range project includes the Red Bull, Bindii, Big Bullocks, Aries and Big Bang granted exploration licences, four active exploration licence applications and another six exploration licence applications that are subject to ballot.
It is considered to be highly prospective for magmatic nickel-sulphide deposits such as IGO’s Nova-Bollinger nickel-copper-cobalt deposit to the north, along with Legend Mining’s Mawson prospect and Galileo Mining’s Lantern group of prospects in the Central Fraser region.
IGO currently holds a 70% interest in the five granted licences and is earning an additional 6% after Carawine elected not to contribute towards the current exploration program, which has an estimated budget of about $1.3m.
Finding another Nova-Bollinger style deposit is significant given that IGO’s flagship project produces around 30,000t of nickel, 12,000t of copper and 900t of cobalt a year.
This article was developed in collaboration with Carawine Resources, a Stockhead advertiser at the time of publishing.
This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.