Tanami Exploration Initiative
Source: Ramelius Resources ASX announcement- 29/04/2015 March 2015 Quarterly Report
The Tanami Joint Venture with Tychean Resources Ltd (ASX: TYK) progressed well during the quarter. Final copies of Mineral Exploration Agreements covering Highland Rocks (ELA27511 and 29829) plus Officer Hills South (ELA27995) in addition to the Groundrush (ELA27921), Mt Solitaire (ELA27997) and Groundrush South (ELA28493) applications were received from the Central Land Council.
During the quarter, Ramelius drilled 15 reconnaissance RC holes (SJRC0001 to SJRC0015) for an aggregate 1,206m over the granted Suplejack tenement (EL26625). The vertical holes were spaced 500m apart as a first pass drill test. The Suplejack drilling was designed to scope for subtle base of unconformity anomalous geochemistry along the interface between the deformed and highly prospective Proterozoic Tanami Group stratigraphy and the overlying post deformation Ordovician basalt lava flows.
Figure 2 highlights the thickness of the overlying basalt flows and attests to the targeting concept, where previous exploration over the project had failed to penetrate through the barren overburden. Encouragingly, anomalous geochemical results have been returned for the drill hole assays received to date. The peak anomalous geochemical result is 2m at 27 ppb Au from 58m in SJRC004. Results from the adjacent hole SJRC003 are awaited. Unfortunately no anomalous gold (>10ppb Au) was recorded elsewhere in the drill holes. Nonetheless, compilation of the data is continuing and given the broad 500m spacing between the holes and the potential for depletion within the underlying weathered Tanami Group rocks the absence of any plus 0.5 g/t Au intersections is not considered discouraging at this stage. Trace element data is awaited. Trace element geochemistry and ASD (alteration logging) determination on fresher bottom of hole RC chips will assist in defining any bedrock trends worthy of further investigation. Infill drilling will be considered once all the gold and trace element results are available.
The Tanami region, located approximately 600 km NW of Alice Springs in the Northern Territory, has become Australia's premier Proterozoic gold province, with virtually all discoveries made since the mid-1980s. The region is one of the last remaining provinces in Australia capable of hosting multi-million ounce gold deposits. It is currently the host to the 7 Moz Callie Gold Mine and several other 0.5–1 Moz deposits. Despite the operation of major processing facilities and considerable gold production, the Tanami remains under explored.
Tychean Resources considers the probability for further discoveries to be high. Outcrop in the region is poor which has led to a lack of geological knowledge. While the discovery history of the Tanami has been essentially continuous since the mid-1980s, proprietary information on discoveries has been closely guarded. The release, by major gold companies of large areas of highly prospective land in the Tanami, has rapidly resulted in a significant increase in exploration activity and further supports the Company's exploration strategy in the region.
Tychean formulated its Tanami Exploration Initiative in 2007 and is pleased to advise that its pipeline of tenements has advanced to grant, allowing field exploration to commence.
Tychean personnel have extensive experience in the discovery and subsequent development of several gold deposits in the Tanami, including the Callie Gold Deposit currently operated by Newmont.
Tychean has secured the rights to explore for both gold and uranium on its Suplejack Project, which lies on Aboriginal Freehold land and for all commodities at the Talbot North Project, situated on Freehold Pastoral Lease land.
Gold deposits in the Tanami are associated with major regional NW–SE trending structures coincident with favourable host rocks, in favourable orientations. These lineaments are clearly discernible on regional magnetic images as structural breaks in the magnetic rock units. Regional alteration and potential gold mineralisation is coincident with the loss of magnetic minerals, due to the passage of oxidising, potentially gold mineralising fluids. The Company considers that the rock units of the Dead Bullock Formation have the best chance of hosting major gold deposits. The coincidence of the alteration system, the favourable host rock orientation and second and third order structures are high priority drill targets for Tychean.
Airborne EM surveys have been designed to complement the existing datasets by detecting areas of graphite destruction, which led to the discovery of the Callie Gold Deposit.
Major NW–SE tending regional structures and areas of magnetite destruction are clearly visible in geophysical data sets for Suplejack (ELA22655 TYK 100%) and Talbot North (EL27806 TYK 100%). Airborne EM will provide an invaluable additional dataset allowing efficient siting of drillholes. Tychean has signed an Exploration Deed with traditional owners at Suplejack, allowing the process to grant to proceed. The Deed allows for exploration and subsequent development of both gold and uranium mines.
Tanami Farm-in and Joint Venture Agreement – May 2014
Tychean has finalised terms with Ramelius Resources Limited in respect of a Farm-in and Joint Venture Agreement over Tychean’s Tanami Project, a 1,700km² prospective land package within the Tanami Complex – Northern Territory.
Ramelius will farm-in on a package of two granted Exploration Licences (ELs) and six EL applications in the Northern Territory.
The tenement package, located within 100km of Newmont’s 4.5 million plus ounce Callie gold mine within the Northern Territory Tanami Complex (Figure 5) represents a unique opportunity to explore over 1,700km² of prospective Paleoproterozoic stratigraphy within a significant yet underexplored gold province.
Farm-in and Joint Venture Agreement Terms
Ramelius will pay Tychean $50,000 cash upon execution of the agreement to assist Tychean facilitate the grant of the Highland Rocks and Officer Hills South exploration licences within the land package.
Subject to all necessary statutory and regulatory approvals plus the grant of the two Highland Rocks and Officer Hills South ELs, Ramelius will commit to a minimum exploration expenditure of $100,000 within 2 years.
Ramelius may earn an 85% interest in the project by exploration expenditure of $500,000 within 3 years.
Tychean will be free carried until a Decision to Mine at which time it may elect to contribute its interest or convert to a 1.5% NSR Royalty.
Research by Geoscience Australia* (circa 2006) included the application and interpretation of deep seismic transects throughout the Tanami region in the Northern Territory. The regional seismic transects enabled Geoscience Australia to model the crustal architecture within the province and to interpolate that known lode gold deposits within the Tanami may be associated with major crustal penetrating shear zones and antiformal thrust stacks, nested on deep seated thrusts propagating off the Proterozoic-Archaean basement detachment. Linear magnetic trends, interpreted as thrust faults, extend into the Tychean tenements (Figure 6) and may represent potential conduits for the ingress of gold mineralising fluids.
Tychean’s tenement package was originally applied for in 2010 to 2011. Ramelius will now advance exploration over the tenements within this under-explored and highly prospective gold province.
Over 80 line km of prospective structural trends are believed to exist within the Highland Rocks ELAs alone.
These trends will be the focus of detailed regolith/outcrop mapping plus rock chip sampling along with shallow vacuum and surface soil sampling programmes over the next 12 months.
Results will be reported as they become available.