South32 backs emerging WA base metal project

South32 backs emerging WA base metal project

AusQuest and South32 will prioritise exploration at the Mt Davis base metal project in Western Australia as part of a strategic alliance agreement (SSA).

Located on the northern side of the Earaheedy Basin, Mt Davis has the potential to hold sediment-hosted lead, zinc and copper mineralisation, with a reverse circulation (RC) drilling program being designed to test versatile time domain electromagnetic (VTEM) anomalies at least 1000m x 500m in size.

“The recent soil sampling and VTEM surveys completed by AusQuest provide strong support for the presence of sediment-hosted mineralisation at Mt Davis, in an area where very little effective exploration has been carried out to date,” AusQuest managing director Graeme Drew said.

The SSA was formed in 2017 to set out a framework for AusQuest to explore new high-potential opportunities in Australia, targeting mineral provinces and new deposits.

If South32 spends $US4.5 million on exploration, the company can earn a 70 per cent interest in Mt Davis, with the completion of a pre-feasibility study unlocking an extra 10 per cent stake.

An RC drilling program will test large-scale EM and geochemical targets, with the partnership hopeful of making “large-scale” base metal discoveries. AusQuest and South32 believe the VTEM anomalies identified at Mt Davis mimic the lead and zinc mineralisation discovered by Rumble Resources at the Chinook prospect.

“The company looks forward to reporting on progress at Mt Davis once the drill program is finalised and heritage clearances (are) obtained to allow drilling to commence,” Drew said.

Source: Australian Mining