Australian Gold and Copper Ltd (ASX:AGC) has lodged an application for a new exploration licence covering the newly named Ootha Project in the Central Lachlan Fold Belt in NSW which contains a well-defined copper trend more than 10 kilometres long.
“Finding such a large, high-tenor copper rock chip anomaly in 42-year-old historic data is even more exciting than sampling it ourselves and is a lot cheaper," AGC managing director Glen Diemar said.
"We were absolutely stunned to find such a strong and well-defined copper trend in a totally under-explored sedimentary basin."
“These basins in NSW can be highly productive for base metals as seen in the nearby Cobar Superbasin. The world-class CSA Mine near Cobar is a local example of a structurally-hosted copper deposit and is currently the highest-grade copper mine in Australia," he said.
"We believe a CSA deposit model is a very attractive exploration target for AGC at Ootha."
Exploration licence ELA6549 will replace the Derriwong licence as Derriwong did not cover the area of elevated copper.
Plan view map of the Ootha Copper Target (NYSE:TGT) relative to the Boxdale-Carlisle Reefs trend.
High copper concentration
A review of historic data by the company’s geologists revealed an extensive, multipoint copper anomaly in rock chip sampled between 1977-1979 by Mines Exploration Pty Ltd.
Historic sampling returned 44 samples out of 481 exceeding 0.10% copper with maximum copper of 0.36%. The rock chip sampling is confined to low-level hilly outcrops that trend northeast.
The copper anomaly strikes northwest in the same direction as AGC’s 15-kilometre Boxdale-Carlisle Reefs gold trend 20 kilometres to the north, implying that the mineralisation may be controlled by a similar structure pattern.
No modern geochemistry, geophysics or drilling has been conducted on the project over the last 40 years.
Quartz and manganese cemented siltstone breccia.
Historical sampling validated
“Last week we were able to go to the area for a reconnaissance trip and, albeit very wet, were able to confirm the presence of strongly anomalous copper in roadside outcrops. Using a handheld XRF machine, we were able to rapidly validate the sampling and assaying completed 42 years ago,” Diemar said.
“We have a great head start so once the licence is granted, we will accelerate on-ground efforts with soil sampling for target definition.
"There is abundant outcrop and good exposure of the basement rocks meaning efficient exploration can be achieved.
"Our priority remains to explore for near-surface, high-quality targets which can be worked up and tested rapidly and cost-effectively,” he added.
With consistent high concentrations of more than 0.10% copper and spread across great distances, AGC believes Ootha is a substantial primary copper source waiting to be found.