Strategic Energy Resources clinches more copper-gold targets

By Justin Ware. Published at Nov 30, 2018, in Juniors

Strategic Energy Resources (ASX:SER) has clinched two exploration licence applications (ELAs) in the Olympic Dam Copper-Gold province.

These applications come in the wake of BHP’s recent strong iron oxide copper-gold (IOCG) discovery at Oak Dam West.

SER’s long history of operating in the Gawler Caton will be enhanced by the decision to build on its existing Olympic Dam Province portfolio that includes the prospective Myall Creek Project.

The ELAs
The ELAs

ELA 2018/185 Billa Kalina

The ELA 2018/185 Billa Kalina comprises 525 square kilometres, covering coincident offset gravity and magnetic anomalies. This ELA is situated approximately 60 kilometres northeast of the Prominent Hill copper-gold mine.

Currently, there are only two drill holes within this ELA: SR11 (maximum depth 103.9m) and SR12 (399m). Both were drilled by Damper Mining/Newmont in 1977/1978.

While these historic drilling activities did target the coincident gravity/magnetic anomalies, they failed to reach the targets. Rio Tinto Exploration did hold this ground but didn't conduct any activities onsite, and the source of the geophysical anomalies remains unknown.

SER has strong knowledge of the area within ELA 2018/185, having conducted a ground gravity survey at the location in 2014.

The company noted that ELA 2018/185 is in competition with another party, who lodged an application for the same region on the same day.

ELA 2018/183 Island Lagoon

ELA 2018/183 Island Lagoon is 70 square kilometres in size and lies approximately 50 kilometres southwest of BHP’s new discovery at Oak Dam West.

There is currently only one drill hole within the ELA, which covers a residual gravity anomaly.

Drilled in 1982, ‘Vanguard 1’ was executed by CSR Ltd. and designed to test the residual gravity anomaly. It intersected Mesoproterozoic basement at 1067m before terminating 29m later in the Gawler Range Volcanics.

The cause of the geophysical anomaly was not determined.

ELA 2018/183 is in direct competition with two other parties who lodged applications on the same day. Of these applications, one covers the exact area SER has pegged, while the other covers a far greater area.

Caution advised

The company reiterated that its ELAs are in competition with other parties, and it may not secure the right to apply. In addition, the ELAs are applications only, and there is therefore no guarantee that these licences will be granted.

SER will advise shareholders of the outcome, which will be determined by the South Australian Department for Mining and Energy.

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.

Conflict of Interest Notice

S3 Consortium Pty Ltd does and seeks to do business with companies featured in its articles. As a result, investors should be aware that the Firm may have a conflict of interest that could affect the objectivity of this article. Investors should consider this article as only a single factor in making any investment decision. The publishers of this article also wish to disclose that they may hold this stock in their portfolios and that any decision to purchase this stock should be done so after the purchaser has made their own inquires as to the validity of any information in this article.

Publishers Notice

The information contained in this article is current at the finalised date. The information contained in this article is based on sources reasonably considered to be reliable by S3 Consortium Pty Ltd, and available in the public domain. No “insider information” is ever sourced, disclosed or used by S3 Consortium.