Copper Hills could be a game changer for Peak Minerals
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Special Report: Peak Minerals’ soon-to-be-acquired Copper Hills project is showing early potential to host what could be a large magmatic copper-nickel sulphide system.
Drilling has started at the Copper Hills project in Western Australia, which is currently owned by private explorer Greenrock Metals but will soon be added to Peak Minerals’ (ASX:PUA) portfolio once shareholders give the deal the green light.
The 2,000m, eight-hole reverse circulation drilling program will test multiple targets prospective for hosting oxide copper and magmatic copper and nickel sulphide mineralisation.
A detailed review of previous exploration identified magmatic sulphides close to surface.
Notable hits reported were 5.49m at 1.78 per cent copper and 0.14 per cent nickel from 78.88m, including 0.92m at 6.15 per cent copper and 0.48 per cent nickel; 4.88m at 1.7 per cent copper from 68.83m, including 0.31m at 13.2 per cent copper and 1.29 per cent nickel; and 2m at 4.95 per cent copper from 10m.
Peak Minerals managing director David Leavy said through the process of evaluating Copper Hills in detail the company’s understanding of the scale of the system and its nature had substantially transformed.
“With confirmation of the presence of copper-nickel sulphide in proximity to EM conductors and associated with gabbroic intrusives, we are strongly encouraged by the potential for hosting a magmatic sulphide system,” he said.
“The magmatic sulphide targets identified appear to be pipe like bodies with considerable depth extent.
“Through this round of drilling, we expect to have the requisite information to update our understanding of the mineralisation potential and will utilise some of the RC holes to extend further with diamond tails in a subsequent phase of exploration.”
The near-surface mineralisation identified to date at the Copper Hills and Lady Alma prospects within the broader Copper Hills project appears to indicate a number of similarities to that of the adjacent Gabanintha gold mine.
However, the key difference is that the Copper Hills and Lady Alma prospects are relatively copper-rich with limited gold compared to the Gabanintha mine.
Previous exploration has identified a 3km prospective corridor defined by a combination of drilling, geochemistry, EM geophysics and historical mine workings.
In mid-October Peak Minerals exercised an option it held to acquire Greenrock Metals and its portfolio of four projects spanning 1,289sqkm in the Kimberley and the Mid-West mining centre of Meekatharra.
The Copper Hills and Cork Tree projects in the Meekatharra region are surrounded by some well-known big mines like Grosvenor, DeGrussa, Plutonic, Peak Hill, Andy Well, Big Bell and Wiluna.
The news of this fresh drilling round edged shares up over 7 per cent to 3c on Tuesday morning.
This article was developed in collaboration with Peak Minerals, 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.