THE BOURSE WHISPERER: MRG Metals (ASX: MRQ) has expanded its portfolio of Queensland copper exploration tenements.
The company has been granted the two remaining licence applications EPM19470 and EPM19471 within the Mount Isa block in Queensland.
MRG Queensland IOCG projects. Source: Company announcement
The company said the two blocks, plus its current licence EPM19306, have potential to host iron oxide, copper gold (IOCG) and base metal deposits, claiming they possess similar geophysical characteristics to known deposits in the area such as Glencore PLC’s Ernest Henry mine and BHP’s Cannington mine.
SQUIRREL HILL – EPM19470
The Squirrel Hill project is located approximately 125 kilometres SSE of Cloncurry and some 15 kilometres WNW of the
Despite the proximity of Squirrel Hill to Cannington, MRG said previous work has indicated it may be a geological setting favourable for IOCG deposits in addition to silver – lead – zinc mineralisation.
MRG has already commenced a review of past exploration to select initial targets.
PULCHERA – EPM19471
Situated in the Simpson Desert near the Northern Territory border in western Queensland EPM19471, the Pulchera project is near the major Toomba Fault which lies on the south western edge of the Mt. Isa Block, a Proterozoic geological terrain that hosts a diverse range of world class orebodies.
MRG pointed to previous broad spaced drilling carried out by BHP, which demonstrated the depth of cover ranges from 40 to 100 m.
The company said its aim is to discover an Olympic Dam-style IOCG deposit in a granitic breccia host, associated with continental faulting and high fluid flow on terrane boundaries.
DAVENPORT DOWNS – EPM19306
The Davenport Downs licence was granted in April 2013 and lies 120 kilometr es south east of Boulia.
MRG said it is similar to the Pulchera project in that it is close to the interpreted southern margin of the Mount Isa Block.
The project straddles a part of a prominent gravity ridge with accompanying magnetic signatures.
Exploration work undertaken on the tenement to date comprise historical data compilation, geophysical data review and prospectivity assessment.
MRG considers the Davenport Downs EPM to be prospective due to its positive magnetic – gravity response, which the company explained to be characteristic of IOCG-type deposits in the Mount Isa Block.
The depth of cover is understood to be around 400m, so MRG anticipates future exploration to comprise focussed drilling of geophysical (magnetic-gravity) anomalies.
“These newly granted licences will form the focus of MRG exploration efforts in the coming year,” MRG said in its ASX announcement.
“Our strategy has been to apply for ground largely on the margins of the mineralised Proterozoic Mount Isa block, where basement is under cover and there are exploration opportunities for discoveries.”