Shares in mineral exploration business OD6 Metals (ASX: OD6) rocketed by 75 per cent on Wednesday after the group reported its proposed acquisition of one of Australia’s highest grade historical copper mines, known as the Gulf Creek project.
Located near the town of Burra in New South Wales, Gulf Creek is a volcanogenic massive sulphide (VMS) style copper and zinc deposit which saw underground mining down to 100m depth and along 300m of strike length between 1896 and 1912.
The copper mineralisation at the historical mine is recorded as occurring within three high-grade parallel zones.
Mining at the Cornish Lode reportedly averaged an impressive grade of between 6 per cent and 6.5 per cent copper. Similarly, the Middle Lode averaged between 3 per cent and 3.5 per cent copper in the historical workings, whilst the Big Lode averaged between 2 per cent and 2.5 per cent copper.
Management noted that Gulf Creek has seen little modern-day exploration with only two exploration holes drilled at the project in nearly a century. It believes that numerous untested copper targets remain at the project.
VMS copper and zinc systems are renowned for hosting multiple, high-grade repeat structures. Management believes the mineralisation at Wolf Creek is geologically akin to the nearby Woodlawn deposit owned by fellow ASX-listed explorer Develop Global, where a resource base of more than 20 million tonnes grading 1.6 per cent copper and 9.1 per cent zinc has been defined historically.
The copper mineralisation at Gulf Creek is associated with magnetite occurring in the VMS system, with recent geophysics pointing to multiple repeat structures to the north and west of the known historical workings. According to the company, the tenure has potential for a larger and more expansive high-grade copper and zinc system hosted within such structures.
All up, OD6 has identified more than 3km of untested strike length of the targeted high-grade magnetite-VMS structures sitting in proximity to the historical mine at Gulf Creek, and more than 10km of strike across the broader landholding.
Notably, the project is permitted and drill-ready for an initial ‘Phase 1’ exploration campaign around the historical workings, with all flora, fauna, land access, and native title requirements already in place.
In turn, OD6 is set to hit the ground running with a planned 14-hole drilling campaign tabled for early in the new year. The group also intends to conduct an array of target-definition works across the tenement to pinpoint drilling locations for a future ‘Phase 2’ campaign at Gulf Creek.
OD6 managing director, Brett Hazelden, said:
“OD6 has reviewed over 40 potential new projects and is pleased to announce that we have entered into binding documentation to acquire the license over the historic Gulf Creek Copper mine and its surrounding area, in NSW…
We intend to apply modern exploration technologies and have identified the linkage between copper and magnetite in the shallow historic workings. Based on a review of a recent 2021 drone magnetic survey there is potential of over 10km of untested magnetic VMS target horizon.”
The Wolf Creek tenement covers an area of 23.75 square kilometres and is valid until December 2029.
It lies in an infrastructure-rich region wedged between two NSW renewable energy zones with existing solar and hydro power access. The Port of Newcastle is located about 400km away by road, whilst nearest gas pipeline and railway line can be found some 83km from the project.
The proposed acquisition of Gulf Creek is based on a $200,000 payment in cash coupled with 6,000,000 OD6 shares being issued to the seller. In addition, another $200,000 worth of OD6 shares or cash will be due to the seller on commencement of a future ‘Phase 2’ drilling program, subject to shareholder approval.
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Shraddha13
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