Australasian Metals Limited (ASX: A8G) (Australasian Metals or the Company) announced that it has completed a data review of the work completed at the Ayres Rock Prospect located in the Capella Gold Project (the “Project”) located in Central Queensland, Australia.
Figure 1: Location of Mt Clermont & Capella Gold Projects
The prospect is interpreted to be a structurally controlled, epithermal-style quartz vein breccia unit hosted within rhyolitic ignimbrites of the Silver Hills Volcanics. Widespread alteration in the Volcanics consists of quartz-albite-chlorite-carbonate-pyrite ± epidote and rare orthoclase.
Highlights:
- The study has identified drill targets based on high-grade epithermal gold veining
- To date, 106 holes for 12,146.3m of drilling have been completed at Ayres Rock
- Targets are interpreted as plunging shoots that have been identified from previous drill intersections:
- CAR036: 26m at 3.88 g/t Au from 45m, including 2m at 33.4 g/t Au from 50m, 3m at 3.89 g/t Au from 59m and 1m at 9.75 g/t Au from 78m
- ARC009: 32m at 3.8 g/t Au from 22m, including 2m at 32.8 g/t Au from 22 m and 2m at 18.9 g/t Au from 50m
- Resource block model data and alteration zonation support interpretation.
Mineralisation comprises fine-grained free gold and refined gold grains associated with disseminated pyrite. Cross-cutting, fine-grained quartz veins display cruciform and colloform epithermal textures.
The study identified several targets with potential for further mineralisation, and the Australasian team identified potentially higher-grade plunging ore shoots. Three target drill holes on two sections have been designed to test the plunging shoot targets at varying depths.
Recent mapping close to the high-grade intersections found outcrops/sub-outcrops of epithermal veining. The newly mapped vein crops have a strike length greater than 100 metres and a width of up to 1m in several places.
Alteration Zoning:
The following alteration zoning has been identified as follows:
- Propylitic (generally on the outer margins of the drilling)
- Potassic (red to pink feldspar alteration of a porphyry intrusive)
- Argillic (possibly marginal to the potassic altered porphyry)
- Zone with Sericite/Silica alteration associated with the best gold intersections
- Carbonate +/- chlorite zone
- Outside sericite zone
Figure 2: Long Section Drilling with Proposed Drill Holes and Alteration Zoning at Ayres Rock Prospect
Induced Polarization (IP) Survey
The IP survey of the Ayres Rock prospect was completed on 100m grid lines. The IP occurs near a disruption in the northwest-trending linear resistivity anomaly. The prospect is related to a disturbance in a weak component of the northwest grain that lies on the flank of the resistivity anomaly.
The main concentration of drilling targets the area’s changeability. This resistivity will prove helpful in exploring for mineralisation, possibly with higher silica content. The main charge ability and resistivity anomalies to the northwest and southeast of Ayres Rock are coincident.
Resource Estimation Model – Plunge Target
The Maiden Mineral Resource (MRE) for gold was completed in 2023. This MRE covered the Ayres Rock for the Capella Project and the Retro Extended Deposits for the Mt Clermont Gold Project. The combined Inferred Resources amount to 63,600 ounces of gold at a grade of 1.13g/t.
Further Steps
- Follow-up drilling programmes are currently being designed. This would be subject to the interpretation of recent and historical results.
- It is proposed that diamond drilling be undertaken to explore a northerly plunging high-grade mineralised shoot. The proposed drill holes would intersect the target in two sections, located to the north of the known high-grade mineralisation zones.
Capella Project Overview
Australasian Metals Limited wholly owns the Capella Gold Project tenement. It currently comprises one exploration permit (EPM25956) covering a total area of 37.2 km2. The tenement is in good standing, with no known impediments. There are no aboriginal sites or national parks over the license area.
The Ayres Rock prospect has previously been explored using various exploration techniques, including geological mapping, rock sampling, soil sampling, IP, and ground magnetic geophysical surveys. Previous explorers completed 66 holes on the Capella permit. Currently, 46 drill holes have been completed at the Ayres Rock prospect. Of these, 34 holes were completed by previous companies.
Geology:
- Mineralisation comprises fine-grained free gold and refined gold grains associated with disseminated pyrite grain boundaries.
- The basement rocks consist of Bathampton Metamorphics, a subdivision of the Anakie Metamorphics. The units consist of quartz-mica schist and phyllite, with subordinate quartzite, amphibolites and calcsilicate rocks.
- The deposit is associated with alteration characterised by an outer zone of moderate to intense hematite alteration and albite or K-feldspar alteration and an inner zone of significant chlorite and sericite alteration.
High Gold Prices Indicative of Favourable Outlook
Gold prices touched an all-time high and have witnessed a 12% price increase in the 2024 year till date. This growth is primarily driven by the expectations that the U.S. Federal Reserve will lower interest rates. Coupled with inflation hedging, buying by global central banks, and continuing geopolitical risks, prices are anticipated to reach USD 2,500/ounce in Q4 2024.
Figure 3: USA 10-Year Real Treasury Yield & Gold Prices
The mid-term pricing fundamentals of gold remain strong, with the primary catalyst being the falling interest rates in developed markets. Such circumstances would subsequently increase the flow of investment from the West. Hence, the positive pricing fundamentals are encouraging for precious metal exploration companies such as Australasian Metals Limited.
Figure 4: Gold Price Forecast, 2024-2025
About Australasian Metals Limited
Australasian is a lithium, gold, and precious metals exploration company focused on developing projects in Australia. It currently has a purchase agreement for over 274.3 km2 of tenements. Its projects include the May Queen Gold Project, Mt. Clermont Gold Project, Barrow Creek Lithium Project, and Mount Peake Lithium Project.
From the Managing Director’s Desk
Australasian Managing Director Dr Qingtao Zeng commented, “Australasian has defined a maiden Inferred Resources of 63,600 ounces at 1.13 g/t from Ayres Rock and Retro Extended deposits. Given the recent surging gold price, we are pleased that this structure and alteration study has identified potential plunging high-grade shoots worthy of drill testing at depth”.
Investor’s Outlook
Australasian Metals Limited is strategically accelerating the development of its flagship assets under the strong leadership of Managing Director Dr. Qingtao Zeng. Dr Zeng’s extensive experience overseeing key mining projects throughout his career positions him well to guide the Company towards becoming a frontrunner in the global gold and precious metals market.
As of August 6th, 2024, Australasian Metals Limited’s shares traded at AUD 0.085 per share, with a 52-week range of AUD 0.060 – AUD 0.240. The Company’s market capitalisation is AUD 4.43 million, with 52.12 million shares on issue.
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