THE DRILL SERGEANT: Horseshoe Metals (ASX: HOR) has announced a major increase in the Mineral Resource estimate at the company’s Horseshoe Lights copper-gold project, located 75 kilometres from Sandfire Resources’ (ASX: SFR) DeGrussa copper-gold mine in Western Australia.
The project’s new total Measured, Indicated and Inferred Mineral Resource Estimation is:
– 12.85 million tonnes at 1 per cent copper and 0.1 grams per tonne gold for 128,600 tonnes of copper and 36,000 ounces of gold (using a cut-off grade of 0.5 per cent copper).
This represents a 40 per cent increase in the copper metal content over the 2011 Mineral Resource Estimation.
More than 30 per cent of the new Resource estimate is in the Measured and Indicated categories.
Horseshoe commissioned the calculation of the Mineral Resource estimation following the completion of drilling at Horseshoe Lights in May 2013.
For all areas subjected to recent drilling the Mineral Resource has been classified into three categories (Measured, Indicated or Inferred) based on the geological confidence and data quality.
Horseshoe Metals indicated that there has been no twinning of historic drill holes within the Main Zone beneath the existing pit, which resulted in the entire resource south of 7194150mN beeing classified into the Inferred category.
Drill hole location plan. Source: Company announcement
The company said the combined total of the new Horseshoe Lights Resource and the recently-announced Mineral Resource Estimate for the Kumarina project gives it an overall copper metal inventory of 148,000 tonnes copper.
“The company’s understanding of the geology of the Horseshoe Lights deposit has increased substantially as a result of the drilling and modelling completed during the past 15 months,” Horseshoe Metals said in its ASX announcement.
“Recently reported diamond drilling on the western side of the open pit has confirmed the down dip/plunge potential below the Main Zone.
“In addition the eastern side of the open pit remains a very prospective location for discovering additional copper/gold mineralisation based on the limited number of historical holes drilled in this area.
“In the North West Stringer Zone several holes drilled by the company in 2012 recorded significant high-grade intercepts that require further drill testing.”
Horseshoe Metals said it remained confident of the existence for potential to substantially grow the copper inventory at the Horseshoe Lights project with targeted drilling.
The company is planning to undertake a Down Hole Electromagnetic (DHEM) survey ahead of the next phase of drilling at Horseshoe Lights.
The DHEM survey will be testing for off-hole conductors, which the company considers may represent massive sulphide copper/gold mineralisation.