|Ownership:||100% Redstone Resources Ltd|
The Tollu Copper Nickel (Cu-Ni) Project (the Project) area hosts a giant swarm of hydrothermal copper rich veins in a mineralised system covering an area of at least 6km2 and forming part of a dilation system between two major shears. Copper mineralisation exposed at the surface comprises malachite, tenorite and azurite, whereas mineralisation below 60-80 metres is composed by chalcopyrite and minor pyrite, chalcocite, and bornite.
The Project is located in the southeastern portion of the West Musgrave Region, north of the A-type Tollu Granite on a major north trending structure. Initial interest in the area was focused on the Tollu Mining Centre which hosts a rich and extensive copper-bearing vein system. It was delineated in 1957 by Southwestern Mining Limited (INCO subsidiary) when 68 rock chip samples of the reef system returned an average grade of 6.75% Cu, and up to 22 grams per tonne silver. Eleven samples returned assays of over 15% Cu with a peak of 54% Cu.
These values were confirmed by Redstone in early 2007 with peak values of 56.5% Cu, 50g/t Ag, 19ppb Au, 0.03% Pb and 23ppb PGE. High grade copper mineralisation is known over a 2km x 3km area where mineralisation styles include fault-related, vein and fracture fill, stringer and disseminated mineralization in altered gabbro and felsic volcanic host rocks.
TOLLU CENTRAL ZONE - SUBZONE 1
The Central Zone has 8 subzone targets. Drilling at Subzone 1 has already established the existence of a significant body with an average Cu grade of > 2.6%. The November 2011 RC drilling programme included hole TC80 which extended the depth of Subzone 1 copper sulphide mineralisation to 379m - open at depth. TC80 intercepted the same mineralised body drilled by earlier drill holes TC32 (at 85 metres depth), TC15 (150m), TC20 (152m), and TC21 (212 m). All five of these drill holes have demonstrated mineralisation grades between 2.4% and 3.1% Cu. Their thicknesses of mineralisation are 6.1m, 15.6m, 10.4m, 3.5m, and 11.25m respectively.
The Central Zone (Subzone 1) mineralised body has:
- mineralisation confirmed along 600 metres at surface. The average thickness is 9.37 metres; and
- the average grade of mineralisation within this body is 2.68%.
The body has been charted to a depth of 380m (TC-80) and is believed to be up to 600m in length. This subzone is currently estimated to contain 150,000 - 170,000 tonnes of Cu and remains open along strike and at depth.
Drill hole TC80 (see diagram below) intercepted four mineralised bodies previously intercepted by drill holes TC15, TC20, TC21 and TC32 and extended the depth of mineralisation to 368m (160m deeper than was established by previous drilling). The mineralised body remains open at depth.
TOLLU EASTERN ZONE
Drilling at the Eastern Zone has intersected significant sulphide mineralisation (19.9m @ 1.45%) with several metres at grades of 5%. Early indications are that this body is comparable in size to that of subzone 1. Importantly, TD-3 is the first to contain traces of nickel and cobalt sulphides (see ‘Tollu’s Nickel Potential’ opposite page).
Seven shallow slim-line RC drill holes were drilled in May 2007 to test surface vein-related copper mineralisation below weathering. However split results were not received until this annual reporting period. Significant mineralization was intersected in several holes (Table 2)
SUMMARY OF TOLLU DRILLING RESULTS