The Cundeelee Project comprises an area of approximately 1,260 square kilometres and lies within a distinctive NESW trending geological belt. Unlike other gold districts in WA, this belt had no historical gold mining and, until the last few years, very little exploration activity.
The main activity has been at the Tropicana/Havana Prospect, where Anglo Gold Ashanti (AGA), in joint venture with Independence Group, has discovered a +5 million ounce gold deposit. They have also announced a discovery at the Beachcomber Prospect where several significant intersections, including 4m @ 43.5g/t Au, have been returned.
Tropicana and Beachcomber are about 220 km apart with the Cundeelee Project in between, covering an 80 km length of the target geology.
The initial strategy involved systematic geochemical sampling over the entire project area, which comprised the collection of over 31,000 samples. This resulted in the definition of 17 often large areas of anomalous geochemistry, including 15 gold anomalies and two base metal anomalies. An unusual feature is that there are no well-defined trends, as might usually be defined by peak values. While this is indicative of the development of underlying mineralised systems, there is relatively poor definition of targets for follow up drilling.
The follow up strategy has been to undertake broad spaced interface drilling over selected areas of the gold anomalies. This was designed to gain an understanding of the regolith profile, the geology of the bedrock and to demonstrate a link between the surface geochemical anomalism and regolith and/or bedrock gold mineralisation.
11 areas of anomalous gold geochemistry have been evaluated with interface drilling, with significant gold values (+100 ppb gold) being returned at seven of the areas. This level of gold anomalism is seen as significant and is comparable to the values returned from the early interface drilling at Tropicana. Limited RC drilling tested beneath two prospects.
Overall, the Cundeelee tenements remain significantly under explored. Geophysics has not been used in target definition and opportunities exist for further targets to be defined using a combination of geological datasets.
Following an interpretation of a structural model for the Tropicana gold deposits that highlights the importance of internal north-south controls to mineralisation within a broader north-east structural domain, Dominion has evaluated the major mineralised domain faults known to occur within the Cundeelee tenement package. Several structural positions where the north-east faults either turn or are offset by north-south structures have been identified. These include the Geordie and Hatlifter Prospects.
Initial drilling to test these targets, and further drilling to evaluate the gold mineralisation encountered to date at the Corona, Hatlifter and Geordie Prospects, will be undertaken in the second half of calendar 2010.