The Company’s Paterson Project is located in the Paterson Province of Western Australia, a region which is host to a number of world-class gold and copper deposits, including Newcrest's Telfer gold and copper Mine and Metals X's Nifty copper Mine. The region has seen a marked increase in exploration activity recently, following two major new finds within 12 months: Winu, a potentially large sediment-hosted copper deposit discovered by Rio Tinto (ASX:RIO); and Havieron, an intrusion-related gold and copper deposit discovered by AIM-listed Greatland Gold PLC (AIM:GGP).
Carawine’s Paterson tenements are known to contain host formations and structures common to the major mineral deposits in the area. The tenements were applied for prior to the significant increase in exploration and tenement activity witnessed in the region in recent times, and were selected on the basis of proximity to known mineralisation, shallow depth to basement, hosting prospective stratigraphy and geophysical anomalies.
Carawine’s Paterson tenements
The Paterson Project comprises six granted exploration licences and five exploration licence applications (one subject to ballot) over an area of about 1,500km2 across nine regions: Lamil Hills, Trotman South, Red Dog, Baton, Sunday, Cable, Puffer, Eider and Magnus.
Carawine has a farm-in and joint venture agreement with Rio Tinto Exploration Pty Ltd (“RTX”), a wholly owned subsidiary of Rio Tinto Limited (ASX:RIO), whereby RTX have the right to earn up to 80% interest in the Baton and Red Dog tenements by spending $5.5 million in six years to earn 70% interest and then sole funding to a prescribed milestone.
Carawine also has a farm-in and joint venture agreement with FMG Resources Pty Ltd, a wholly owned subsidiary of Fortescue Metals Group Ltd (“Fortescue”) (ASX:FMG), whereby Fortescue have the right to earn up to 75% interest in the Lamil Hills, Trotman South and Sunday tenements by spending $6 million in seven years.
The Company retains full rights on its remaining five exploration licence applications. Cable, Magnus, Puffer and Eider are located in the western part of the Paterson Province, and cover parts of the Broadhurst, Yandanunyah and Isdell Formations. The Cable and Puffer tenements straddle the Vines Fault, a major regional structure associated with several exploration prospects. The Broadhurst Formation is host to Metals X’s Nifty copper deposit, with Magnus and Puffer located just 1km and 20km respectively from Nifty.
Carawine will progress these tenements towards grant while it reviews work completed by previous explorers to identify areas on which to focus initial target generation activities. The Company will continue to consider all options for advancing its Paterson project tenements, including progressing exploration programs in its own right, and/or possible joint venture opportunities.
West Paterson JV (RTX earning 70%)
The Baton tenements are located about 100km north of the Nifty copper deposit, and contains copper, lead and zinc mineralisation hosted by dolomitic breccia in a sequence of dolomite, carbonaceous siltstone and carbonaceous shale of the Broadhurst Formation (host to the Nifty deposit). Brecciation is associated with a major NNW-trending, ENE-dipping fault that separates carbonaceous siltstone units to the west from crystalline carbonate units to the east. The style of mineralisation and stratigraphic setting of Baton is similar to that of the Warrabarty zinc deposit and the Millenium prospect. Several early-stage but compelling magnetic and gravity anomalies have been identified from detailed airborne and ground geophysical surveys at Baton, similar to those observed at the recent Winu and Havieron discoveries (refer ASX announcements 8 July & 27 August 2019):
Gravity and magnetic anomalies at Javelin, Wheeler and Discus
Baton tenements detailed magnetic image with gravity survey areas and targets.
The Red Dog tenement is located approximately 16km northeast of the Nifty copper mine in moderately deformed, low grade metasedimentary rocks along the NW margin of the Yeneena Basin. The tenement is considered prospective for stratiform Cu-Co deposits e.g. Nifty and Maroochydore, sediment-hosted Pb-Zn deposits e.g. Warrabarty within the upper Broadhurst and Isdell Formations and intrusion-related gold and copper mineralisation (e.g. Havieron, Telfer).
In addition to targets generated from the wor of previous explorers, Carawine completed a detailed VTEM™ Max helicopter-borne electromagnetic (EM) survey with the aim of delineating discrete conductive anomalies associated with sulphide mineralisation (e.g. Rio Tinto’s Winu discovery) or resistive zones associated with alteration (e.g. silica-dolomite alteration associated with the Nifty copper deposit).
The VTEM survey was successful in identifying twelve conductive (RDC01 to RDC12) and four resistive (RDR01 to RDR04) anomalies in new areas and at previously identified prospects, as follows (refer ASX announcement 29 July 2019):
Red Dog tenement VTEM conductivity image and targets (late time Ch 48BZ image)
For details of the farm-in and joint venture agreement with Rio Tinto Exploration Pty Limited refer to the Company's ASX announcement dated 28 October 2019.
Coolbro JV (Fortescue earning 51%)
Trotman South and Sunday are located 27km south of the Telfer gold mine and immediately west of the Maroochydore Cu-Co deposit. Trotman South has many of the structural elements normally associated with gold deposits in the Telfer region, i.e. domes/anticlines and WNW to NW-striking faults. Interpreted demagnetised zones in otherwise strongly magnetic layers in gabbro-monzonite sills, could represent discrete alteration halos to gold mineralisation, with anomalous bedrock intersections in Rotary Air Blast (“RAB”) drilling occurring adjacent to one such zone. Base metal (Zn, Co) anomalism in historic drilling also occurs within the tenement, associated with a variety of dolomitic sediments and intrusive bodies, indicating the potential for both sediment-hosted and intrusion related (skarn) styles of gold and base metal mineralisation. Sunday contains mapped occurrences of the Broadhurst Formation, host to the Nifty copper and Maroochydore copper-cobalt deposits.
Lamil Hills, approximately 25km northwest of the Telfer gold mine, is considered prospective for intrusion-related, Telfer-style gold and copper mineralisation with similar host stratigraphy and the presence of domal structures on the tenement, and identified gold-copper mineralisation on adjacent tenure. Anomalous gold lag samples in outcrop on Carawine’s tenement have been reported by previous explorers.
For details of the farm-in and joint venture agreement with FMG Resources Pty Ltd refer to the Company's ASX announcement dated 13 November 2019.