Strategic Energy Resources has its next move planned out after finding more hints of IOCG at Canobie
Special Report: Strategic Energy Resources’ joint exploration efforts with Fortescue subsidiary delivers early success with intense IOCG-type alteration intersected at the Canobie project in northern Queensland.
Strategic Energy Resources (ASX:SER) and FMG Resources – a wholly owned subsidiary of Fortescue (ASX:FMG) – recently completed the first field season to test three Ernest Henry-style IOCG targets at Canobie.
IOCG deposits are highly sought-after due to their potential for being incredibly large and easy to process.
Canobie shares the same geological domain as Evolution Mining’s (ASX:EVN) Ernest Henry operation to the south, as well as the Mount Margaret, Eloise and Roseby copper-gold deposits.
Ernest Henry hosts one of the largest copper reserves in the world and holds the potential to contain additional deposits.
Given their geological similarities, it is no surprise SER and FMG are directing their efforts towards uncovering Ernest Henry 2.0.
FMG can earn up to 80% in Canobie by funding up to $8m in exploration over two phases.
Testing of the two Ernest Henry-style IOCG targets during the first field season at Canobie did not intersect significant copper intersections.
However, drilling at the Apollo Bore and Sundance prospects did encounter alteration that is consistent with precursor alteration in IOCG deposits throughout the district.
Datasets from the exploration program will be assessed to refine the exploration model and select next targets.
“The first field season at the Canobie project has confirmed our view of the prospectivity of the project to host Ernest Henry style IOCG deposits,” SER managing director Dr David DeTata said.
“All three targets tested this year were magnetite rich with IOCG geochemical pathfinders present.
“The team has already incorporated these new datasets to design additional geophysical programs to rank the dozens of remaining targets across the project prior to drill testing this year. This is the science driven approach to exploration that SER strives for in search of the next Tier-1 discovery undercover.”
Assays from all drilling will be used to assist in relogging the core and, combined with all available datasets, covering the project to refine SER’s exploration model.
Additional geophysical surveys will start in Q2 2024 to rank drill targets before the second year of drilling.
This article was developed in collaboration with Strategic Energy 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.