AVOCA RESOURCES LTD “The Rigs are Rattling in South Australia” Sydney Mining Club 4 March 2004.
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Transcript of AVOCA RESOURCES LTD “The Rigs are Rattling in South Australia” Sydney Mining Club 4 March 2004.
![Page 1: AVOCA RESOURCES LTD “The Rigs are Rattling in South Australia” Sydney Mining Club 4 March 2004.](https://reader030.fdocuments.us/reader030/viewer/2022032517/56649cb75503460f9497dd03/html5/thumbnails/1.jpg)
AVOCA RESOURCES LTD
“The Rigs are Rattling in South Australia”
Sydney Mining Club4 March 2004
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• Who is Avoca?• What got Avoca started in SA? • How do you cut back over 16,000km2 to meaningful drill targets?• What has Avoca achieved in SA, and where to in 2004?• Summary
Presentation Outline.
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Avoca is an aggressive junior explorer….
Diamond Drilling 1,397 metres
RC Drilling 6,064 metres
Aircore Drilling 14,205 metres
RAB Drilling 24,143 metres
Auger Drilling 5,815 holes
Soil Sampling 6,444 samples
Gravity Surveys 4,583 stations
Surface EM Surveys 98 line km
…..all since listing in April
2002.
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..with a quality portfolio in two of Australia’s highest endowed provinces…
• Over 10,000km2 in Australia’s richest copper belt , being the Olympic Copper-Gold Province in SA, and
• Almost 8,000km2 in the Eastern Goldfields of WA….mostly in free-carried JVs with Gold Fields, Placer Dome, Harmony, Teck Cominco, Sons of Gwalia and Mines & Resources.
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Avoca corporate overview.• ASX Code AVO
• Issued Securities 64m shares (58m quoted)
9.8m unlisted options
• Market Capitalisation $10m ($3m in cash)
• Major Shareholders - Gold Fields (11%)(Top 20 own 44%) - Kurana (7%)
• Staffing MD, EM, SG,TGM, Ac(pt)
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• Who is Avoca?Who is Avoca?• What got Avoca started in SA? • How do you cut back over 16,000kmHow do you cut back over 16,000km22 to meaningful drill targets? to meaningful drill targets?• What has Avoca achieved in SA?What has Avoca achieved in SA?• Where to next for Avoca’s SA quest?Where to next for Avoca’s SA quest?• SummarySummary
Presentation Outline.
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Recognising an opportunity and moving very fast…..
Prominent Hill:100m @ 2% Cu
announced
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..to secure the major position in Australia’s richest copper belt.
• Within 24 hours of the Prominent Hill announcement, Avoca became the dominant lease-holder with 16,000km2 in what later became known as Olympic Copper-Gold Province.
• Applications by fax and a credit card bill of ~$15K…..
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• Who is Avoca?Who is Avoca?• What got Avoca started in SA?What got Avoca started in SA? • How do you cut back over 16,000km2 to meaningful drill targets?• What has Avoca achieved in SA and where to in 2004?What has Avoca achieved in SA and where to in 2004?• SummarySummary
Presentation Outline.
![Page 10: AVOCA RESOURCES LTD “The Rigs are Rattling in South Australia” Sydney Mining Club 4 March 2004.](https://reader030.fdocuments.us/reader030/viewer/2022032517/56649cb75503460f9497dd03/html5/thumbnails/10.jpg)
….smart geochemistry and geophysics.
Northern segment of holding was principally geochemistry driven. -utilising innovative geochemical techniques able to “see” through the rocks which bury mineralisation.
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….smart geochemistry and geophysics.
Southern segment of holding was geophysically driven.• combination of magnetic and gravity surveys collected both by government agencies and Avoca.
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An example of innovative geochemistry.
Gravity Magnetics (regional only)
• 1979 drill hole intersected 14m @ 0.5% Cu at 280m depth. • Avoca collected “partial leach geochemistry” over drill hole to see if technique can “see through cover rocks.”
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Geochemistry over drill hole containing buried mineralisation shows
strong surface anomaly
Wandearah Enzyme Leach
-20
0
20
40
60
80
100
120
6301
000
6301
500
6302
000
6302
500
6303
000
6303
500
6304
000
6304
500
6305
000
6305
500
Northing
pp
b
La
Ce
Pr
Nd
Sm
Eu
Gd
Tb
Dy
Ho
Er
Tm
Yb
Lu
Hf
Drill hole location
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..Avoca then completed extensive geochemical coverage to test Nth block.
In excess of 11,000km2 surveyed. One sample collected every 4km.
Four areas showed coherent and strongly anomalous copper-gold-REE anomalism on surface at: Myall Hill, Shore Hill, Pernatty and Reordan.
Provides for ground rationalisation strategy.
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.....over ground like this, sometimes!
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The application of geophysics in the search for Cu-Au.
• Magnetics proves very useful for identifying major faults that control location of zones of rock that may host mineralisation.
- eg Pine Point Fault and Port Julia prospect on the Yorke Peninsula
780000mE760000mE740000mE720000mE
138º00'00"E137º45'00"E137º30'00"E
62
20
00
0m
N6
20
00
00
mN
61
80
00
0m
N6
16
00
00
mN
61
40
00
0m
N6
12
00
00
mN
34º15'00"S
34º30'00"S
34º45'00"S
35º00'00"S
0 10 20 Kilometers
PararaMine
Port Juliatarget
Hillside Mine
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The application of geophysics in the search for copper-gold.
- Both the Ernest Henry deposit and Avoca’s Glensea Prospect (east coast of Eyre Peninsula) show similar geophysical features: large magnetic complex against non-magnetic granite.
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• Who is Avoca?Who is Avoca?• What got Avoca started in SA?What got Avoca started in SA? • How do you cut back over 16,000kmHow do you cut back over 16,000km22 to meaningful drill targets? to meaningful drill targets?• What has Avoca achieved in SA and where to in 2004?• SummarySummary
Presentation Outline.
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20mGals
21mGals
22mGals
23mGals
24mGals
Olympic Dam style breccia at Port Julia
PJD1
• First Avoca drill hole into 6km long gravity anomaly intersects Olympic Dam-style breccia. *First occurrence on Yorke P.
• Second hole commenced yesterday, 2.5km from first hole.
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PJD1 176.2m: Chalcopyrite in haematitic breccia
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Drilling PJD1 at Port Julia, June 2003
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MOORE GEOPHYSICS
New work at Port Julia involves 3D imagery of Avoca’s gravity data…
20mG
als
21mG
als
22mG
als
23mG
als
24mG
als
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MOORE GEOPHYSICS
..and calculating what type of dense body may give rise to the Port Julia gravity anomaly…
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MOORE GEOPHYSICS
PJD1 drilled in non-optimum location.
1km
Here higher density “cores” to the source body are seen as green, and are targets for current drill testing.
PJD1 PJD2
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Is Glensea another Moonta-style field?
• Avoca drills the only 3 holes into 80km2 magnetic anomaly.
• Discovers high grade copper-gold veins in 3 holes over 6km2.
• Large TEM program to identify large massive sulphide position completed.
• Drilling to re-commence in March Qtr 2004.
Glensea
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Glensea discovery – another Moonta field?
Avoca’s 3 holes are the only holes ever drilled into the magnetic anomaly
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COD1, 115.47mMassive chalcopyrite with quartz.0.9m @ 3.25% Cu, 0.24 g/t Au, 2.4 g/t Ag
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Drilling COD1 at Glensea, April-May 2003
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Wandearah is a very large and highly dense body..
• Drill targets defined by two discrete 5km2 gravity anomalies. North target coincident with highly anomalous geochemistry.
• Targets not previously drilled.
• Avoca to drill in March 2004.
Wandearah
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..with two discrete gravity anomalies (drill targets).
• Two discrete anomalies off main anomaly axis – defined by 1800 station gravity survey completed by Avoca.
• Very large target sizes (5km2)
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MOORE GEOPHYSICS
New work at Wandearah shows 3D image of Avoca’s gravity data.
OLD
NEW
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MOORE GEOPHYSICS
Dense body at depth calculated as being responsible for gravity anomaly.
Note this feature
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Discrete gravity anomaly
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Copper anomaly(20x background)
Geochemistry overlying gravity.
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REE anomaly(50x background)
Geochemistry overlying gravity.
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DRILL TEST – March 2004
Uranium anomaly(50x background)
Geochemistry overlying gravity.
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Summary• Avoca is an aggressive and fast moving junior explorer that acquired the major holding of Australia’s richest copper belt following MNR announcement. •Avoca’s initial holding of in excess of 16,000km2 was reduced using results from a combination of innovative geochemistry and geophysical techniques.•Avoca has discovered a new high grade copper-gold Moonta style field at Glensea.
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Summary cont’d.•Avoca’s first drill hole into Port Julia intersected Olympic Dam style haematite breccias. First observation on YP.•Wandearah exhibits excellent geochemical and geophysical properties consistent with buried mineralisation.•All 3 copper-gold targets to be drill tested over next 2-3 months.
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www.avocaresources.com.au