VANCOUVER, BC, Oct. 20, 2020 /CNW/ - Essex Minerals Inc.
(the "Company" or "Essex") (TSXV: ESX) is pleased to announce that
Phase 2 drilling is set to commence and provides an update on Phase
1 drilling at its Cumberland joint
venture project in Queensland,
Australia.
Highlights
- Phase 2 follow-up drilling commences next week and aims to be
completed before the onset of the rainy season.
- This program will include a series of diamond drill holes in
and around the RBZ Discovery Hole 1 which encountered 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).
- Final assays from the Phase 1 regional prospecting program
which tested six different regional targets have been
received.
-
- Hole 5 (20RBZ-DD005), 2.3km NW of Hole 1, intersected
narrow intervals of low-grade silver, base metals and
arsenic-peripheral mineralization before encountering a major fault
at 104m downhole. The intersected
intervals do not explain the wide zone of anomalous gold and silver
encountered in the soils at surface and requires follow-up.
- Hole 6 (20RBZ-DD006), 3.5km NW of Hole 1, intersected
narrow zones of anomalous copper and base metal mineralization
similar to results from earlier drilling by Kidston Gold Mines a
further 2.5km NW along structure at Log Creek, suggesting
fracture-controlled porphyry-style mineralization in the northern
part of the RBZ Structural Zone which represents a potentially
large target for future exploration.
- Petrology studies undertaken on samples from the first three
holes confirm the RBZ Structural Zone has been subjected to at
least three stages of alteration, with the bulk of the gold and
silver being deposited in the third late stage carbonate
(epithermal) over print. Importantly, the bulk of the gold and
silver occurs as free particles.
- Structural and geochemical interpretation from the drilling
suggests that the northern part of the zone may have been subjected
to block faulting and is therefore prospective for porphyry-style
mineralization, while in the southern part of the zone, from
Discovery Hole 1 and 2.5km SSE towards the caldera rim, the later
stage mineralization has been preserved and is the most favourable
target for large epithermal gold and silver deposits.
Essex President and CEO Paul
Loudon said: "The first ever regional-scale drilling program
on the Cumberland property has
been a great success. We have tested a range of blind geochemical
targets along 3.5km of the RBZ Structural Zone and encountered
favourable geology for both epithermal and porphyry-style deposits
in every hole, including the discovery of high-grade gold and
silver mineralization in the south.
"The presence of porphyry-style mineralization in the north
provides some potentially large targets for future exploration,
while high-grade gold and silver in the south represents an
exciting discovery which we are now following up with the Phase 2
drilling.
"The extent of the alteration and the size of the structures
encountered suggest sufficient plumbing and architecture for the
emplacement of large deposits within the property. Our focus
between now and the end of the year will be follow-up drilling,
surface geology and geophysical interpretation to target in as
quickly as possible on extensions and repetitions of the high-grade
gold and silver encountered in the Discovery Hole 1."
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.
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
All samples from the first phase drilling
program were 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.
Table of Drill Hole Collar Locations
Drill
Hole
|
Easting
|
Northing
|
Elevation
(m)
|
Hole Depth
(m)
|
Azimuth
(degrees)
|
Inclination
(degrees)
|
20RBZ-DD001
|
746830
|
7968800
|
241
|
203.7
|
271
|
minus 55
|
20RBZ-DD002
|
745681
|
7969738
|
234
|
219.9
|
060
|
minus 57
|
20RBZ-DD003
|
746922
|
7968620
|
239
|
191.7
|
270
|
minus 50
|
20RBZ-DD004
|
745243
|
7970411
|
235
|
209.5
|
280
|
minus 51
|
20RBZ-DD005
|
745700
|
7970762
|
240
|
192.6
|
093
|
minus 54
|
20RBZ-DD006
|
745748
|
7972398
|
257
|
231.5
|
089
|
minus 53
|
|
|
|
Total
|
1248.9
|
|
|
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