Olary Project
Cutana Tenement
The Cutana Project area is about 350 km north-east of Adelaide and within approximately five kilometres from the White Dam gold mine operated by GBM Resources (ASX:GBM). See Figure 2 highlighting close proximity to other large resources in the region, including Havilah Resources’ (ASX:HAV) Kalkaroo and Mutooroo Cu-Au-Co deposits, and Cobalt Blue’s (ASX:COB) Thackaringa Co-Cu deposit.
Exploration at Cutana has primarily targeted gold extensions into Renascor’s project area from regional structures interpreted to control localisation and mineralisation of the nearby White Dam gold mine. Later efforts have transitioned to cobalt/copper targeting, with promising indicators presenting at Bulloo Creek and Shorts Dam.
Renascor has identified several high priority targets from a program of extensive multi-element geochemical sampling over areas of major interpreted structures.
In December 2011, Renascor completed initial reconnaissance drilling over a portion of these gold targets, completing 33 reverse circulation holes for a total of over 2,100 metres at 50 to 100 metre intervals. Results from this initial sampling included elevated gold and copper levels at the partially drilled Heinrichs Prospect.
Renascor also completed additional multi-element geochemical sampling in the eastern block of EL 6451 and identified the Pinery Prospect, the project’s most extensive geochemical target to date. The sampling defined two elevated gold zones at the Pinery Prospect, near the eastern tenement boundary. Subsequent infill sampling of Pinery defined an elevated gold zone (greater than 5 ppb) over an area of approximately 2,000 metres by 500 metres, with maximum gold levels of 48 and 53 ppb in the southern and northern portions of the anomaly respectively. Renascor considered the soil gold anomaly at Pinery to compare quite favourably to soil gold levels from White Dam. See Figure 3 Au geochemistry contour.
Subsequently, five initial wide-spaced RC drill fences intercepted narrow low-grade intervals in 50% of holes, with a best result at 0.16 g/t Au (RC057). Additional targeted geophysics (IP) and/or systematic RAB drilling is considered as a prospective opportunity to vector in on potential higher-grade intervals.
Renascor narrowed focus on cobalt exploration in 2017-2018. Several positive Co resource discoveries have presented in the Olary region, such as close proximity to the globally significant Cobalt Blue resource, Thackaringa, as well as Havilah’s Mutooroo Cu-Co resource supporting Renascor’s Co approach (see ASX release here). The Bulloo Creek and Shorts Dam prospects identified as key targets in this study.
Figure 1: Olary tenement map containing Outalpa and Cutana.
Figure 2: Map highlighting Bulloo Creek and Shorts Dam prospects.
Figure 3: Cutana gold soil geochemistry contouring at the Pinery Prospect.
Bulloo Creek Prospect
Bulloo Creek has been identified from extensive detailed soil geochemistry (Figure 4), with elevated Co soil geochem. contours strongly correlating with a magnetic high surveyed in the area (Figure 5). Soil geochemistry and magnetics viewed together is depicted in Figure 6.
Two Renascor RC drill sections previously testing a soil gold anomaly returned strongly elevated Co near surface (see RC28: 14m @ 414ppm Co incl. 2m @ 0.139% Co, RC33: 46m – 48m @ 0.087% Co).
Coincident infill Co soil geochemistry compared to overlying magnetics contours has also been completed.
As a result, an extensive (3km) magnetic trend coincident with strong, coherent Co soil anomaly currently presents as a highly prospective walk-up drill target.
Figure 4: Cutana cobalt soil geochemistry heat map at the Bulloo Creek Prospect.
Figure 5: Cutana-magnetics-imagery-displaying-the-prominent-magnetic-high-over-the-Bulloo-Creek-Prospect.
Figure 6: Bulloo Creek prospect – Co soil geochemistry contours over magnetics.
Shorts Dam Prospect
Gossan sampling and mapping by Esso Minerals in the 1970s defined an extensive zone of strongly elevated Cu/Co gossans. Historical drill testing returned the following results:
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DH SP4: 15m at 0.14% Co from 19m, accompanying pyrrhotite and pyrite.
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Esso drillhole “SP4” deepened with “SP12” returned strongly elevated Co, Cu associated with the “Bimba” sulphide unit.
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Hole SP3 failed to test the target down dip.
Subsequent Renascor gossan sampling confirmed a major NW target zone following the Bimba Unit trend.
Noting the Co association with pyrrhotite/pyrite and proximity to the Bimba Unit and related sulphide gossans, following the predicted Bimba Unit trend is viewed as a strong potential walk- up drilling target. A major NW trending target zone awaits testing (see Figure 7).
Figure 7: Shorts Dam prospect – depiction of cobalt intercepts and basement/gossan subcrop.
Outalpa Tenement