Duck Creek Joint Venture, Queensland
(GOLDSEARCH Diluting to 25%)
Overview
The Duck Creek Joint Venture comprises EPM 13336 Duck creek (10 sub-blocks) and EPM 15718 Duck Creek South (2 sub-blocks). Queensland Mining Corporation (ASX: QMN) is earning up to 70% of EPM 13336 by spending $750 000 upon which they will also hold 25% of EPM 15718. QMN will issue Goldsearch 1 million shares and up to 5 million options (depending on exploration outcomes). A third party (TR & GS Hutton) currently holds 5% of EPM 13336. Queensland Mining Corporation has been aggressively building a portfolio of projects targeting significant oxide copper resources in the Cloncurry region.
The project is centred roughly 30km southwest of Cloncurry on the Cloncurry-Dajarra Road (Malbon Road) and hosts at least 70 known copper (-gold) occurrences, small mines and gouger pits (some of which are covered by MLs) within its boundary. Oxide mineralization has been mined to vertical depths of less than 25m at Chainman’s, Horseshoe, Tulip, Pioneer and Mountain Maid. (Mining Leases within and surrounding EPM 13336 and EPM 15718 do NOT form part of the joint venture).
Duck Creek Joint Venture Project showing EPMs and prospects
Geology and Mineralisation
The project covers areas of highly prospective country within the Eastern Succession of the Mount Isa Inlier in north-west Queensland. The Duck Creek workings are located on the eastern flank of the northeast trending Duck Creek Anticline. The anticline features a core of Argylla Formation dacite, which is overlain by agglomerate and pillow lava of the Cone Creek Metabasalt which hosts the mineralization. Dominant structural trends at Duck Creek are NE-SW, with at least three major sets of faults striking NE, NW and EW which truncate the axial plane of Duck Creek Anticline.
Regional Geology of the Duck Creek JV
(Click on image for larger version)
Forget Me Not outcrop
Work Completed by the Joint Venture
Initial reconnaissance work completed by Goldsearch included mapping and sampling of approximately 80 historical workings. Two hundred and thirty-three rock samples taken over the EPM and MLs averaged 1 ppm Au and 3% Cu. Reconnaissance sampling has indicated a much wider distribution of gold and gold copper mineralization than was previously recognised, as earlier exploration focused primarily on copper and often ignored the gold potential.
Forget Me Not workings
A four hole RC drilling program tested the Chainman’s Ore zone (on ML90088) in 2004. The drilling targeted oxide mineralization previously exploited by a shallow pit approximately 500m long and 20m deep. A best result of 3m @ 1.6% Cu from 99m down hole was returned from hole DC03.
Horseshoe Mine
Queensland Mining Corporation (QMN) completed a large MMI soil sampling survey totalling 2415 samples over specific parts of EPM 13336 in 2007. The survey defined a number of Cu and Au anomalies that require further assessment.
Based on the reconnaissance sampling work and initial drilling, follow-up work is warranted for the following areas:
| - | Ida: | 300m strike, 6 rock-chip samples averaged 3.2 ppm Au and up 3.0% Cu |
| - | Alabama: | 500m strike, 2 structures, 11 rock-samples averaged 1.5ppm Au and 2.6% Cu |
| - | Alone Hand: | 500m strike, 7 rock-chips averaged 3.2ppm Au and 2.2% Cu |
| - | Bunyip: | 300m strike, 11 rock-chip samples averaged 0.5 ppm Au and 4.8% Cu |
| - | Columbad: | 700m strike, major magnetic feature, anomalous Au and Cu in rock-chips |
| - | Forget Me Not: | up to 1km strike length of known mineralised structure requires trenching and / or further RC drilling along strike then down dip. |
QMN is planning further reconnaissance work and up to 2000m of RC drilling on the two EPMs for the second half of the 2011.
EPM 13336 Duck Creek (southern portion) summarising work areas of the current joint venture.
Areas requiring follow-up with average rock-chip assays for Au (g/t) and copper (%) are also shown.
Mountain Maid Lookout
