CXO Exploration Discovers High-Grade Mineralisation; Awarded $170,000

Published at Jun 30, 2015, in Small Caps

Core Exploration Ltd (ASX:CXO) says ongoing exploration at its Yerelina site has uncovered a new mineralised shear zone with surface grades of zinc and lead.

CXO’s development is located in northern South Australia, covering about 1,000km2, and forms part of the company’s strategy to develop base metals and uranium projects in South Australia and the Northern Territory.

CXO says the new mineralisation discovery shows there is 14% zinc and lead surface grades using a handheld XRF. It has named the area Grace shear, and it is 600m west of the 10m gossan already identified at the Big Hill shear zone on the Yerelina zinc project.

These new results come after 5% zinc was already discovered at CXO’s Big Hill mineralised shear zone. This area has highly anomalous zinc, lead and silver spreading at least 2km of the sampling discovered so far.

Extensive mapping of the area

CXO has carried out surface mapping, detailed magnetic surveys and remote sensing imagery of the mineralisation of its development and has found positive results.

CXO says that its mapping indicates that its project is located in a zone that is highly prospective for shallow zinc mineralisation. Results from the company point to this because, thanks to CXO’s mapping, high grade mineralisation has been found now on at least six separate north-south structures.

Future plans for Yerelina

CXO plans to sample more rock chips, channels and infill soils at the Yerelina project, to see whether the zinc mineralisation extends any further and if there are other mineralised shears within the 8km by 2km prospective area.

Current samples are at the laboratory and these results are expected to be published within the next couple of weeks.

Awarded Funding

CXO has recently been awarded two specific grants for prospective diamond drilling activities. The grants were awarded to support CXO’s ongoing exploration activities in Australia.

In April this year, the explorer was awarded $75,000 as part of South Australian government’s PACE Discovery Drilling 2015 program and a separate $96,000 from the Northern Territory Geological Survey (NTGS) in June.

The PACE grant will be used to assist in drilling six angled diamond core holes to gather a more thorough understanding of the grade distribution, mineralisation potential and geological controls of the project. This drilling could happen as soon as Q3 2015.

Managing Director, Stephen Biggins, says “These high grade zinc results at surface may only be the tip of the iceberg on the Yerelina Zinc Project.” Adding, “In a short space of time Core has been able to identify a large zinc target that extends over an area 8km wide and has individual targets up to 2km in strike.”

The $75,000 grant from PACE was further bolstered by a $96,000 grant from the NTGS as part of its Geophysics and Drilling Collaborations program. The funds will co-fund diamond drilling of zinc, silver and lead sulphide system discovered by CXO at its Inkheart Prospect in the Northern Territories in Australia.

The circa 1,000m drilling program is expected to be completed by the end of 2015 – looking for high-grade potential beneath previous RC drill intersections as well as to better understand mineralised “veining” discovered during previous drill work.

Looking Forward

CXO is confident that diamond drilling will fill an important information gap and help guide the explorer to discover higher-grade deposits in the thicker part of the mineralisation system at the Inkheart and Yerelina Projects respectively.

Discovery of thicker, high-grade primary mineralisation would dramatically improve the probability of commencing exploration activity in the Amadeus and East Arunta provinces, to look for zinc, silver and lead potential. Currently, CXO has over 100km of strike within the prospects’ current tenure.

CXO intends to continue its regional soil programs focused on zinc, lead and silver at a series of tenements on the Albarta Project. Most recent exploration activity is focusing on the structural margin of the Amadeus Basin and east Arunta provinces. Results will be compared and contrasted with existing figures – previous data from the Blueys/Inkheart prospect can be used as a benchmark for quality evaluation.

S3 Consortium Pty Ltd (CAR No.433913) is a corporate authorised representative of LeMessurier Securities Pty Ltd (AFSL No. 296877). The information contained in this article is general information only. Any advice is general advice only. Neither your personal objectives, financial situation nor needs have been taken into consideration. Accordingly you should consider how appropriate the advice (if any) is to those objectives, financial situation and needs, before acting on the advice.

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