ASX-listed metal producer Mungana Goldmines last month announced high-grade zinc results from previously unassayed diamond drill holes within its Red Cap project area, 4 km from Mungana’s partially completed base metals concentrator at Chillagoe, in north Queensland.
The drilling was done by Australian mining company Kagara in 2011 and early 2012, prior to the company going into voluntary administration in 2012. A total of six diamond drill holes completed at the time were not assayed by Kagara and Mungana recently undertook sampling from these six holes, comprising three holes from the Victoria, two holes from the Penzance and one hole from the Cambourne deposits.
The assay results include 20.5% zinc and 2.9% copper concentrations at a 3 m strike, 9.4% zinc and 0.9% copper concentrations at a 5 m strike, 13.6% zinc and 1.9% copper concentrations at a 2.4 m strike, 8.7% zinc and 2.1% copper concentrations at a 3.7 m strike, 7.9% zinc and 2.9% copper concentrations at a 1.5 m strike and 8.1% zinc and 0.3% copper concentrations at a 3.8 m strike.
Mungana MD Tony James says the new Red Cap results confirm its potential to become Mungana’s second high-grade zinc project, located in close proximity to the base metal concentrate plant, which requires completion.
“These assays support our view that there is potential for a high-grade strategy at Red Cap to complement the King Vol project, which is located 25 km to the north-west of Red Cap.
“This view is strengthened by what we are seeing within the geology of the individual deposits at Red Cap, representing both the existing defined mineral resources and the significant exploration potential,” he asserts.
As at June 18, 2015, the King Vol project comprised 2.99-million tons at grades of 11.9% zinc, 0.8% copper, 0.6% lead and 29.9 g/t of silver.
Red Cap currently has an inferred mineral resource of 3.8-million tons at grades of 4.8% zinc and 0.7% copper. This resource estimate does not include Red Cap’s Victoria deposit, from which five of the assayed intercepts are derived, or other potential deposits such as Cambourne, Belgravia and Tarantula.
Red Cap consists of several base metal skarn-associated deposits focused along faulted contacts in the Silurian- to Devonian-aged Chillagoe formation. Red Cap is located 15 km north-west of the town of Chillagoe and only 4 km from the partially completed base metals concentrator at the Mungana mine site.
The Red Cap project comprises four north-west-striking mineralisation trends, which are developed along subparallel lithological contacts located 300 m to 400 m apart. These four trends are Queenslander/Morrisons, Tarantula, Victoria, and Belgravia/Penzance.