ASX CODE : CGN
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Fergusson Island, PNG
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The geology of the Croydon Goldfield consists of the mid Proterozoic Esmeralda Granite and the co-magmatic Croydon Volcanics while the gold mineralisation is much younger at 300Ma (similar in age to the Mt Leyshon or Kidston gold deposits). Approximately 80% of past production has come from granite-hosted veins known as granite lodes up to 9m thick and controlled by shallow NE dipping reverse faults. Lodes in volcanic host rocks had a maximum thickness of 4.5m in sub-vertical faults.
Gold mineralisation occurs in planar quartz veins, stockworks and breccias. The granite lodes are also spatially associated with graphite and base metals with the most significant graphite development known to date being at the Golden Gate mine. The largest producer in the Croydon Gold Field, the Golden Gate Lode (480,000 ounces of gold) is located within EPM18616 and EPM9438, tenements owned 100% by the Company.
The acquisition of EPM18616 by the COmpany consolidates the length of the Golden Gate lode within tenements held by CGN. Five priority exploration targets along the trend of the Golden Gate lode have been identified as shown by the cross-hatch areas on figure 10. These areas were selected as having potential for gold mineralisation under shallow cover. Future exploration will involve ground geophysics (IP & EM surveys) across target trends followed by drilling.
The Company also holds three other EPM’s in the Croydon Goldfield of North Queensland that provide exploration and development rights over several historical gold prospects, namely Gilded Rose-Jumbo and Jolly Tar that along with EPM18616 collectively form the Croydon Gold project.
Gilded Rose – Jumbo Prospect
The Gilded Rose-Jumbo prospect (EPM10302) is reported in Government records as the largest gold producer (2,690 ozs) in the Carron River area. Gold was first identified in steeply dipping east-west trending stacked quartz veins hosted by rhyolitic volcanics and shale’s.
During the 2011 field season dipole-dipole IP surveys at 50m electrode spacing were undertaken on four lines crossing the Gilded Rose-Jumbo prospect. Results of these surveys were inconclusive due to the presence of a highly resistive surface zone above the water table that prevented effective resolution of conductivity associated with sulphides present within the mineralizing system. It had been hoped that mapping of the sulphide zones would provide assistance in targeting gold mineralisation in the next phase of drilling.
The IP results provided encouragement for additional exploration. The geophysical consultant concluded that gradient array IP would be more effective given the large prospective area covered by the prospect. Detailed review of the assay data from previous exploration drilling campaigns showed broad strongly anomalous to commercially significant gold bearing zones accompany the “higher” grade quartz veins (see tables of important intercepts below).
Gold is present from surface to vertical depths in excess of 200m and appears to be preferentially distributed in SW plunging shoots within the system, a concept that has yet to be explored by drilling. Although the prospect has been subjected to several phases of exploration drilling this work was undertaken when gold prices were substantially lower than presently prevail. The past drilling produced a large number of strong gold intercepts often within much wider, but lower grade gold envelopes.
Summary significant of Gold and Silver intercepts at the Gilded Rose & Jumbo Prospects. Results are weighted averages of assay intervals. They are drill core widths and do not represent true widths.
Location Map of historical drill holes and surface projection of gold “zones” at the Gilded Rose & Jumbo Prospects
Drill traces and Gold intercepts at Gilded Rose.
Long section showing Gold intercepts at the Jumbo Prospect.
In combination with the higher gold bearing quartz veins, the broad zones of lower grade gold now present an opportunity to outline much larger tonnages of mineralisation than previously targeted. The next phase of exploration at Gilded Rose will focus on resource definition of this bulk tonnage gold potential.