HALLS CREEK GOLD-COPPER PROJECT

The Halls Creek Project is covered by three exploration licences and eight prospecting licences covering a total area of 651 km2 over the East Kimberley Mineral Field, near Halls Creek. The tenements extend up to 20 km to the northeast, 25 km northwest and 20 km north of Halls Creek (Figure 1) and cover diverse mineralization styles occurring in a number of prospects, including:

  • Lady Helen and Townsite gold silver prospects occur to the north and east of the Loadstone monzogranite and are associated with WNW – ESE trending brittle shears mapped by the Geological Survey of Western Australia (GSWA). The mineralization is represented by epithermal – style siliceous lodes grading up to 62 g/t Au and 63 g/t Ag at Lady Helen prospect (Figures 2A & B) and 26.1 g/t Au, 22 g/t Ag, 2.6% Pb at Townsite prospect (Figure 3A).
  • Granite gold copper prospect is represented by sheeted quartz veining occurring on the northern edge of the Loadstone monzogranite. The mineralization occurs within a pervasively hydrothermally altered granite host and exhibits potential affinities with a copper-gold style of mineralization associated with the monzogranite intrusive.
  • Bent Ridge gold copper prospect represents multi-phase gossanous quartz veining (Figure 3B) associated with a significant inflection in the Caroline Fault representing a major fault splay off the Halls Creek Fault. The structure is associated with pyrophyllite and fuchsite – carbonate alteration representing significant alteration styles associated with hydrothermal gold –copper – silver mineralization.
  • Potential for volcanic hosted massive sulphide (VHMS) base metal mineralisation, associated with the felsic to intermediate volcanic and volcaniclastic Koongie Park Formation, is afforded by the tenement package that includes up to 20 km strike length of the fertile volcanic stratigraphy that contains known VHMS mineralization at Sandiego and Onedin (exclusions) to the south. VHMS prospects representing immediate exploration targets within the tenements include Banjo, Ukelele and Highway prospects.
  • The Milba Formation, occurs to the east of the Koongie Park Formation and represents an earlier volcanic regime based on GSWA geological mapping. Base metal mineralization occurs within stratigraphically equivalent rocks at the Little Mt Isa and Ilmars base metal prospects, immediately to the north of the tenements. There has been insufficient exploration to define a Mineral Resource and it is uncertain if further exploration will result in the determination of a Mineral Resource.

BACKGROUND

The East Kimberley Mineral Field contains the first discovery of gold in Western Australia in 1885 at Old Halls Creek and has produced significant gold since that time. Prospecting in the seventies and eighties located significant high grade (10 to 60 g/t Au) mesothermal lode gold mineralisation at Nicholson’s Find, west of the Halls Creek Fault, where Bulletin Resources Ltd (ASX:BNR) have recently reported an inferred and indicated resource of 1.38 million tonnes grading 5.58 g/t Au to the ASX on 10 February 2012. Similar styles of epithermal to mesothermal gold mineralisation has been located at Lady Helen and Townsite prospects within the Company’s tenements, west of Halls Creek.

PROPOSED WORK

Hexagon has identified exploration targets in the Halls Creek Project and plans to commence drilling after the tenement applications have been granted and Native Title access agreements finalised. RC drilling can be directed at the series of parallel sheeted gold – silver – copper quartz lodes at Granite Prospect as well as the silicified lodes at Lady Helen and Townsite prospects. Bent Ridge is associated with a large untested gradient array IP anomaly and fuchsite altered gossanous structures that require follow-up by RC drilling. There has been insufficient exploration to define a Mineral Resource and it is uncertain if further exploration will result in the determination of a Mineral Resource.

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Figure 1: Halls Creek Project (blue outline) showing gold, silver, copper and zinc prospects.
(Geology by the Geological Survey of Western Australia – GSWA).

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Figure 2A: Lady Helen pyritic chalcedonic outcrop in a small pit. Assays up to 62 g/t Au and 63 g/t Ag have been achieved from rock samples. Figure 2B: Detail of pyritic chalcedonic lode at Lady Helen prospect.

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Figure 3A: Townsite gold – silver base metal lode containing up to 26.1 g/t Au in rock chip samples.
Figure 3B: Gossan at Bent Ridge gold – copper prospect containing up to 0.59 g/t Au and 1300 ppm As in rock chips.