 Tate River Gold Project
Introduction
The Tate River Gold Project consists of 3 contiguous tenements encompassing
an area of 780km² located approximately 200km west of Cairns in north Queensland
(see Figure 1).
The granted tenements EPM 11866, EPM 12120 & EPM 14349 total 787.6km²
in area and are centred about 200km west of Cairns, and 370km north west
of Townsville. The tenements comprising the Tate River Gold Project are currently
100% owned by Fusion Resources Limited with whom Sovereign has a farmin agreement
to earn between 50% and 75% interest.
The geology of the Tate River area consists of a diverse range of rocks,
including Proterozoic and early Palaeozoic metamorphic rocks, granites and
late Palaeozoic volcanic rocks and related granites. In the western and central
part of the region, these are overlain by scattered remnants of Mesozoic
sedimentary rocks, and in the east by Cainozoic basalt.
The project covers part of the Scardons Igneous Complex, a volcano-plutonic
complex of Permo-Carboniferous age which at the Golden Myall prospect, intrude
the Palaeoproterozoic McDevitt Metamorphics. At Golden Myall, the
dominant rocks are mica rich schists and migmatitic gneisses.
The exploration model targeted by Sovereign in the region is the economically
important class of intrusion-related gold deposits (“IRGD”),
which occur within magmatic provinces best known for tungsten and/or tin
mineralisation. Several deposits in this class contain >100 tonnes (3
Moz) of gold, including Cadia-Ridgeway, Fort Knox, Donlin Creek, Kidston
and Pogo. There are historic tin & tungsten mines in the Tate River region.
Figure 3 represents a long section of the Golden Myall prospect exploration
model.
IRGD deposits exhibit a range of characteristics that vary over a wide range
of emplacement depths (<1km to >7km). Deposits in shallow crustal settings
(~<5 km) are associated with stocks, sills, dykes and volcanic domes and
include systems with epithermal-style veins to breccia and stock work similar
to porphyry-type settings.
Previous Exploration
A detailed compilation and review of the previous exploration conducted
on the Tate River project area has identified a total of 18 anomalous geochemical
areas. Of these, three prospect areas are considered as very high priority
due to the more advanced status of exploration conducted. The basis of selection
for high priority anomalies was primarily influenced by the relationship
of the anomaly to the mapped and/or interpreted geology, especially structure
and Permo-Carboniferous igneous complexes. The highest priority target is
the Golden Myall prospect located on the northern portion of EPM 11866.
EPM 11866 was applied for to cover a coincident Au-Bi drainage anomaly picked
up in a stream survey conducted by AGSO in 1995. Gossanous gold-bearing
quartz float and outcropping quartz-sulphide breccia were previously reported
at the Golden Myall prospect.
A number of geological, geochemical and geophysical (chargeability)
anomalies have been defined. A programme of geological mapping at 1:2,500
scale and rock sampling as follow-up to the anomalous stream sediment sampling
results identified from earlier work was carried out in the late 1990’s.
Figure 1: Tate River Project - Location, Tenure & Geology
Previous exploration undertaken at the Golden Myall Prospect recorded very
encouraging results. Of a total of 39 rock chip samples collected at this
locality, more 50% of samples analysed returned Au anomalous assays greater
than 0.1 g/t Au. Ten samples returned assay results greater than 1.0 g/t
Au, with a peak assay of 8.15 g/t Au. Soil sampling has outlined a series
of anomalies that attain strike lengths of greater than 1.5km and are up
to 400m in width to maximum of 668 ppb Au. Soil results of up to 540 ppm
Cu and 10.7 ppm Bi have been outlined in conjunction with composite rock
chip samples of brecciated vein quartz that recorded up to 6m @ 7.1 g/t Au.
The soil anomalies outlined correlate with chargeability anomalies interpreted
from an IP survey completed over the area.
Figure 2: Tate River Project - Golden Myall Soil & Rock Chip Geochemistry
The targets at Golden Myall include a chargeability anomaly in the western
portion of the prospect with dimensions 400m by 100m concealed beneath shallow
transported cover (see figure 2 above). Brecciated gossanous quartz
scree, coincident with a 21ppb Au soil anomaly, is interpreted to represent
the surface expression of the mineralisation causing the chargeability anomaly.
Interpretation of the IP suggests that sulphide-bearing lithologies dip to
the north at less than 45°. Rock-chip sampling of brecciated quartz
scree returned up to 2.5 g/t Au with strong copper and bismuth anomalism.
The central target at Golden Myall is an extension of the above system that
has been offset 50m by an inferred fault. The chargeability anomaly
measures 350m by 50m, and is broadly coincident with an intense soil anomaly
peaking at 110ppb Au, 540 ppm Cu, and 10.7 ppm Bi. Composite rock-chip
samples of brecciated vein quartz returned up to 6m @ 7.1 g/t Au.
When taken in context, the extent of Au anomalous rock chip sampling that
was conducted by Normandy Exploration comprises an area of over 4.6 km²,
compared to Golden Myall grid area of about 2.0 km². Clearly, significant
potential also exists outside the current limits of the Golden Myall grid
area.
In 1992-93 World Geoscience Corporation Limited (“WGC”) undertook
a multi-client airborne geophysical survey that included the Blackdown 1:100,000
sheet. The resultant processed data show that the gold-in-soil anomaly at
the Golden Myall prospect coincides with an increased intensity of fracturing
on the flanks of an interpreted caldera structure. Sovereign believes that
this is could be due to a Cadia Ridgeway-like plug, which has not yet been
un-roofed. The fact that the interpreted plug is leaking gold to surface
with values up to 8 g/t Au in rock chip samples is very encouraging.
Figure 3: Tate River Project - Myall Conceptual Long Section
As per the farmin agreement announced to the ASX on 18 July 2007, Sovereign
completed the expenditure of $50,000 within a two month time frame and has
reviewed all available exploration data. Sovereign has now elected
to farmin to a joint venture with Fusion Resources on the following terms:
- Earn 50% by spending $1.45 M over two years
- Earn an additional 15% by spending a further $1 M over 18 months
- Earn an additional 10% by spending a further $0.5 M over 12 months
Fusion Resources Limited may elect to maintain its interest at each stage
of the farmin once Sovereign has earned a 50% interest.
Sovereign is planning the following exploration programs:
- Obtaining Native Title access to Golden Myall for soil sampling and drilling
programs
- Fugro Airborne Surveys will undertake a low level aerial magnetic survey
of the entire project
- A RAB/RC drilling program at the Golden Myall planned for the first half
of 2008
- The current soil sampling grid at Golden Myall will be extended in all
directions
- Reconnaissance and regional mapping to be expanded
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