VANCOUVER, BC, Oct. 1, 2020 /CNW/ - Essex Minerals Inc. (the
"Company" or "Essex") (TSXV: ESX) is pleased to provide an update
on Phase 1 drilling at its Cumberland joint venture project in
Queensland, Australia.
Highlights
- The first ever Cumberland
drilling program designed to provide regional-scale prospecting
along the RBZ Structural Zone has been completed on time and on
budget and is considered an exceptional success.
-
- All six holes encountered favourable geology, structure and
alteration which, combined with the discovery of high-grade gold
and silver mineralization (18.8 g/t gold and 160.6 g/t silver
over 6.4m from 139.5m down hole) in Hole 1 in the southern
part of the zone, ranks the potential of the Cumberland property as very high for the
discovery of a large epithermal gold and silver deposit.
- The drilling confirms the initial geological interpretation
that the RBZ Structural Zone is a large 3.5km x 700m wide structural corridor hosting
Permo-Carboniferous age multi-phase, sub-volcanic intrusives
associated with the Cumberland Range Caldera – a collapsed
caldera setting similar in geology to many of the world's major
epithermal gold and gold-silver deposits (see geological map
which has been uploaded to the Essex Minerals website here
https://essexminerals.com/cumberland/).
- Phase 1 drilling totalled 1,248.9m of HQ (63.5mm diameter) core. Assays for
Holes 1 and 2 were reported on September 2,
2020. Assays are reported herein for Holes 3 and 4 and
assays are pending on Holes 5 and 6 which were collared 2.3km and
3.5km NNW of the discovery Hole 1.
- Hole 3 (20RBZ-DD003), collared 200m SE of Hole 1 and drilled west to target the
source of surface a silver in soil anomaly, intersected three
sub-vertical zones (up to 12 m) of
argillic and phyllic alteration associated with silicification and
fine-grained sulfides. Assay results returned strong
arsenic (up to 4,570ppm) and anomalous gold and silver to
49.6 g/t Ag, with elevated base metals and antimony, consistent
with alteration on the margins of an epithermal mineralizing
system.
- Hole 4 (20RBZ-DD004), collared 2.2km NNW of Hole 1 and
drilled west to target the source of a surface gold and silver in
soil anomaly, intersected three zones of quartz-sulfide
mineralization at the contact of quartz-feldspar porphyry and
sheared and altered quartz monzo-diorite. Assay results returned
strong arsenic (up to 1,505ppm) within a 7m intersection between 131m and 138m down
hole (approximately 70m vertical)
with anomalous gold (up to 0.94 g/t Au) and silver (up to 161 g/t
Ag) associated with a fault zone which can be traced on the
surface for over 1 kilometre within the confines of the RBZ
Structural Zone.
- Petrology studies are underway to better define the
relationship between lithologies, structure and alteration. The
first report received on a sample from within the high-grade
mineralized zone in Hole 1 has demonstrated multi-phase quartz
veining associated with strong phyllic alteration characterised by
chromium muscovite. The report concludes that the mineralization
is also multi-phase, starting with early arsenopyrite and
pyrite followed by base metals and concluding with native gold and
silver associated with late stage open space quartz and carbonate
infill. Free gold particles were generally in excess of 50
microns in size.
- The rig will now move back to the southern RBZ zone to
commence the Phase 2 drill program in mid to late October
to follow-up on the high-grade mineralization encountered in
Hole 1, and test for lateral repetitions of mineralisation as
indicated from surface soil geochemistry and distribution of old
workings.
Essex President and CEO Paul
Loudon commented: "To hit favourable structures capable of
hosting large epithermal deposits, including high-grade gold and
silver in the southern part of the RBZ, in all six holes in the
first ever regional-scale drilling program on this property is
extremely exciting. Our technical team is now moving as
quickly as possible to collate all information from the drilling
and integrate it with the previous surface work, LiDAR structural
interpretation and regional geophysics to best site the follow up
drill hole locations."
He added "importantly, initial petrology studies indicate the
high-grade gold in the discovery hole occurs as free gold particles
not locked up in the sulfides, which has positive ramifications for
potential recoveries, and confirmed that the gold and silver
mineralisation is epithermal in character, conforming to the
geological model."
Cumberland Property
The northern Australian state of
Queensland has a history of large
epithermal gold deposits – Kidston (5M oz at 1.24 g/t Au), Mt Leyshon (3.4M oz at 1.43 g/t Au) and Pajingo (3M oz at 6 g/t Au) – but remains under-explored
in comparison to Western Australia
and more recently Victoria.
The Cumberland property was
staked in 2012 by private Australian group KNX Resources Ltd
following a regional search for targets with the potential to host
low sulfidation epithermal carbonate-base metal deposits similar to
the 5 million-ounce Kidston deposit discovered by Placer Dome in
the 1980s in a similar geological setting, 70km to the
southeast.
The Company's independent consultant Dr. Greg Corbett in his review of the Cumberland project described the RBZ
Structural Zone as a Priority A target worthy of immediate drilling
as the geological setting is similar to Kidston.
The property contains six prospects which show characteristics
of poly-metallic, low sulfidation, epithermal mineralization. From
within these prospects, the initial diamond drilling program
commenced on the RBZ Structural Zone, a major 3.5km northwest
trending structural corridor dislocated by conjugate northeast
structures which have created a number of dilation centres.
The dilation centres have been intruded by a series of
Permo-Carboniferous, poly-phase intrusives culminating in late
stage altered rhyolites. The centres have then been overprinted
with surface mineralization consisting of hydrothermal breccias
associated with multi-phase quartz-adularia silver and gold
mineralization.
All rocks intersected in the Phase 1 drilling have been
initially pervasively potassic altered and subsequentially
overprinted by later stage phyllic and argillic alteration
associated with silica flooding and veining over large intervals.
Late stage carbonate infilling of fractures and veinlets is also
evident.
Assays
The Company will continue to release assay
results of the Phase 1 drill holes as they become available.
Several photos of the drill core have been posted on the Company's
website at www.essexminerals.com
All samples from the current drilling program are being
processed in Townsville by ALS Global, an independent accredited
laboratory. Gold assays are completed by 50g screen fire assay with
atomic absorption finish, with the over limit samples rechecked by
fire assay with a gravimetric finish. Silver and multi-element
analysis is undertaken by inductively coupled plasma atomic
emission spectroscopy (ICP-AES) with over limits assayed by four
acid digestion with ICP-AES.
Regrettably, assay turnaround times are slower than usual at the
moment because of workplace shift restrictions resulting from
Covid-19 combined with an accelerated pace of exploration activity
in the northern Australia region.
The Company will release additional assay results of the Phase 1
drill holes as they become available.
KNX Joint Venture
Under the terms of the venture,
Essex has the right to earn an
initial first-stage earn in of 50% of KNX's interest in three
properties – Cumberland, Compass
Creek and Mt Turner - by spending AUD $1
million on exploration by May, 2021. KNX currently owns 80%
of Cumberland and Compass Creek
and 100% of Mt Turner. After completing the first stage earn-in,
Essex has the right to buy out the
balance of KNX's interest for cash or shares at independent
valuation or earn an additional 20% interest in Cumberland and Compass Creek and an additional
25% interest in Mt Turner by spending a further AUD $3 million on exploration.
About Essex
Essex
Minerals is an exploration and development company focused on
mineral exploration and development opportunities where it can
adopt an option earn-in and joint venture model without the
issuance of vendor shares. By identifying geological
teams that have already expended the time and capital to assemble
top quality, advanced projects, with a particular emphasis on gold
projects in Tier 1 jurisdictions. Management's time is shared
across several different projects, as the geological teams already
in place manage the approved exploration and development
programmes. This strategy has the potential to accelerate the
growth in shareholder value for Essex by earning an interest in a range of
projects of merit in a much shorter time frame than otherwise would
be possible.
Competent Person
All of the scientific and technical
information contained in this news release has been reviewed and/or
prepared by Mr Lee K. Spencer, BSc
(Hons), MSc, MAusIMM, a "Qualified Person" within the meaning of
National Instrument 43-101 - Standards of Disclosure for Minerals
Projects.
Paul Loudon
President & CEO
Neither the TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in the policies of the TSX
Venture Exchange) accepts responsibility for the adequacy or
accuracy of this release.
SOURCE Essex Minerals Inc
