Desert Energy rides Camel Hills
THE DRILL SERGEANT: Diversified Perth-based exploration play Desert Energy has completed a second RC drilling campaign on iron ore targets at its Camel Hills Joint Venture project located in the central mid-west region of Western Australia.
Under the terms of the Joint Venture agreement, Desert Energy can earn a 51% interest in the Camel Hills project from Aurora Minerals by sole funding the first $3.8 million of exploration expenditure.
Desert can elect to continue sole funding to earn an additional 19% interest in the project, for a total 70% interest.
The drilling targets were generated following the company’s maiden drilling campaign that was completed in December 2010.
The targets were also generated from detailed aero-magnetic surveys, prospect scale mapping and sampling, and ground based magnetic and gravity surveys.
A total of Twenty-one holes were drilled in the latest round, which was completed in July.
Due to the reconnaissance nature of the program most targets received only one or two holes.
However, Desert Energy was still able to record several thick intersections of magnetite iron, reporting a best result of 60 metres at 33 per cent iron.
Samples from the drilling campaign have been submitted for metallurgical test work to determine magnetite recoveries.
“The results indicate that several of the targets are worthy of more detailed drilling to potentially generate resources along with the T21 target drilled reported on previously,” Desert Energy said in its announcement to the Australian Securities Exchange.
“A number of other targets warrant drilling but due to accessibility and permitting requirements were not include in this campaign.”
Desert Energy has also been focusing its attention lately on the recently acquired Dalgety copper-gold tenement.
Dalgety covers approximately 12 kilometres of the regional Deadman Fault, which hosts a number of zones of anomalous gold and copper mineralisation.
The company has been encouraged by Gascoyne Resources’ announcement of a gold resource directly southwest of the Dalgety tenement.
Desert Energy conducted reconnaissance rock chip sampling over the tenements in June.
“Desert Energy regards the results as highly significant and warrant immediate follow-up,” the company said.
“More detailed prospecting and mapping is underway with the aim of generating specific targets for drilling.”