Shree Minerals (ASX: SHH), a diversified Australian exploration and development company, is pleased to announce that it has successfully completed diamond drilling program at the company’s wholly owned Sulphide Creek Gold Prospect (EL23/2004) in Tasmania.
The Sulphide Creek Gold tenement is located near Lynchford, 5 km south of Queenstown, Western Tasmania. The Prospect is endowed with good infrastructure and labour supply.
The Prospect has several gold occurrences out of which three are strongly anomalous (Davie, Coupon, and Anomaly 24-28) and geologically rated high for their exploration potential for economical gold mineralisation.
A major north-south striking fault, informally named the Harvey Creek fault, passes through the middle of the tenement.
This fault structure has been considered to act as a conduit for the gold mineralising solutions in the area. The Coupon, Anomaly 24-28, and the Davie gold prospects occur in close proximity to this fault.
The Davie Prospect has several shafts and adits developed on quartz reefs which recorded 14 g/t gold at surface. Strong iron oxide filled quartz stockwork is noted near one of the Davie Adits (Plate 1).
Drilling at the Davie Prospect had intersected substantial intersections of ferruginous stockwork which is positive indication for the presence of gold mineralisations and has an intercept of 101 metres @ 0.35 g/t gold, including a 1 m intercept @ 1.05 g/t gold.
Presence of anomalous gold values in soil along with geological interpretation suggests good potential for defining significant gold mineralisation in the Prospect lands.
Additionally, low grade gold mineralisation was drilled at the Coupon Prospect to a depth of about 70 m. This drilling tested only 150 m of strike length. From the Woody Hill Gold Mine, just north of the Sulphide Creek tenement, 4.6 kg of gold was produced at a grade of 17.6 g/t from 265 tonnes of ore.
The company said all above work indicates that the Davie Prospect has potential for hosting a sizable gold mineralisation. Accordingly, from 14 January to 24 February the company drilled 391 metres (diamond) along 2 holes at the Davie Prospect.
The drilling was aimed to extend the strike of gold mineralisation by approximately 80m northwest of the drilling carried out by earlier explorers. Extensive iron oxide filled quartz stockwork (Plate 2) within the silicified quartz sandstone was intersected right from surface in both drill holes.
The stockwork is highly pronounced between faults and extends beyond 165 metres. Currently the drill core is being geologically examined and sampled. Additionally, all tasks (access, drill pad preparation, mobilisation and demobilisation of drill rig, core transport, etc.) relevant to a drilling operation were attended to.
Shree Minerals said it is quite pleased with the drilling results. Based on assay results and subsequent geological studies of all available data further work planning for the tenement during the Second Quarter of 2010 is scheduled.
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Shree Minerals sees potential for gold mineralisation at Sulphide Creek Prospect
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