THE BOURSE WHISPERER: Take-over target Exco Resources (ASX:EXS) continues to demonstrate its value with the completion of a maiden JORC-compliant (combined Indicated and Inferred) resource for the Salebury copper-gold deposit.
The maiden mineral resource for the Salebury deposit has come in at 1.3 million tonnes at 0.90 per cent copper and 0.54 grams per tonne gold containing 12,000 tonnes of copper and 23,500 ounces of gold.
The total resource includes an Indicated mineral resource of 1.1 million tonnes at 0.93 per cent copper and 0.56g/t gold.
The resource still remains open at depth within the prospective region.
The Salebury deposit is located approximately 15km east of Cloncurry in Northwest Queensland and forms part of the company’s Cloncurry project.
Salebury geological interpretation. Source: Company announcement
“The deposit occurs on the southern limb of the Pumpkin Gully syncline,” Exco Resources explained in its ASX announcement.
“Geologically, the area consists of intercalated black shales and meta-basalts/dolerites of the Toole Creek Formation.
“Mineralisation is predominantly hosted within black shale and forms a number of sub-parallel East-West trending lodes.
“Geophysics, surface mapping and anomalous results in drill holes indicate a strong structural control to mineralisation.
“The deposit occurs over a combined strike length of approximately 900 metres.”
Exco said recent geophysics, surface geochemical surveys and drilling it has carried out has effectively mapped the mineralising structures and host lithological units, providing a strong geological model.
Recent drilling has confirmed the continuity of the mineralisation between sections and shown the mineralisation to be extensive and relatively continuous; however there appears to be numerous lodes, some of which will require further infill drilling.
The company indicated this new resource, together with other recent updates and ongoing work in the region is in line with management expectations and does not change the Exco Director’s recommendation in respect of the Revised Offer tabled by predator Washington H. Soul Pattinson & Company Limited (WHSP).
Exco Directors continue to unanimously recommend that Exco shareholders accept WHSP’s Revised Offer.