Wilcherry Project, South Australia (Alliance 67.35%)

The Project is located within the southern part of the Gawler Craton in the northern Eyre Peninsula and comprises seven exploration licences covering 1,198 km2 and is prospective for gold and base metals.

The Wilcherry Project is a joint venture between Alliance Craton Explorer Pty Ltd (67.35%) and Trafford Resources Pty Ltd (32.65%).

Alliance is sole funding $3.2 million exploration in FY2018, and subject to expenditure, may move to approximately 77% ownership.

Wilcherry Project: Location of prospects and HEM / MLEM targets on gravity imageFigure 1. Wilcherry Project: Location of prospects and HEM / MLEM targets on gravity image

Weednanna Gold Prospect

Weednanna is the most advanced gold prospect at the Wilcherry Project, is located 45 km north of the township of Kimba. Historic exploration targeted primary gold beneath coincident calcrete soil anomalies and magnetic highs. This work identified a calc-silicate and magnetite (iron) skarn system containing discrete intersections of high grade gold.

Previous explorers established gold mineralisation over a strike length of 1.3 km.

In 2017, Alliance completed 70 hole RC drill holes for 11,207m to test the strike, dip and plunge continuity of four historic high-grade intersections referred to as Targets 1, 2, 3 and 4. Refer Figure 2.

Forty-three (43) holes reported intercepts >1g/t Au and 14 of those holes returned grade x thickness >50g/t*m, as follows(1):

  • 17WDRC003 (T1): 49m @ 6.3 g/t Au from 45m (incl. 21m @ 10.66 g/t Au from 48m)
  • 17WDRC011 (T2): 10m @ 6.79 g/t Au from 79m (incl. 3m @ 15.55 g/t Au from 81m)
  • 17WDRC012 (T2):    2m @ 61.09 g/t Au from 167m
  • 17WDRC013 (T2):    7m @ 11.05 g/t Au from 82m (incl. 4m @ 17.58 g/t Au from 84m)
  • 17WDRC017 (T3): 14m @ 36.1 g/t Au from 118m (incl. 5m @ 95.6 g/t Au from 120m and 7m @ 7.37 g/t Au from 147m)
  • 17WDRC029 (T1): 30m @ 2.95 g/t Au from 53m
  • 17WDRC030 (T1): 16m @ 7.66 g/t Au from 81m (incl. 8m @ 12.90 g/t Au from 88m)
  • 17WDRC031 (T1): 41m @ 1.62 g/t Au from 44m
  • 17WDRC032 (T1): 60m @ 5.65 g/t Au from 47m (incl. 9m @ 15.57 g/t Au from 63m and 8m @ 13.38 g/t Au from 99m)
  • 17WDRC046 (T3):   7m @ 12.15 g/t Au from 153m (incl. 4m @ 18.81 g/t Au from 154m)
  • 17WDRC051 (T1): 35m @ 3.65 g/t Au from 43m (incl. 9m @ 8.91 g/t Au from 44m)
  • 17WDRC057 (T2):   6m @ 13.63 g/t Au from 59m (incl. 3m @ 26.6 g/t Au from 62m
  • 17WDRC067 (T4): 15m @ 18.21 g/t Au from 107m (incl. 7m @ 35.94 g/t Au from 109m)
  • 17WDRC070 (T4):   3m @ 25.45 g/t Au from 81m (incl. 1m @ 74.2 g/t Au from 81m)

These drilling programs have demonstrated that the high-grade gold lodes are ovoid to rod-like in geometry and have continuity along strike. Close-spaced drilling is required for accurate definition.

(1) Refer to Alliance’s ASX announcements dated 3 April 2017, 10 April 2017, 28 August 2017, 30 November 2017 and 17 January 2018

Weednanna drill hole collars and significant gold interceptsFigure 2. Weednanna drill hole collars and significant gold intercepts

This improved understanding of the distribution of gold at Weednanna will be used to construct a 3D geological model of the prospect and planning further exploration with a view to establishing a mineral resource estimate in H1 2018.

Metallurgical testwork from Targets 1, 2 and 3 indicates the gold mineralisation is amenable to conventional grinding and cyanide recovery techniques.

Regional Targets for Base Metals

In early 2017, a regional high-resolution helicopter borne electromagnetic (HEM) survey was flown to test for conductors associated with massive sulphide base metal deposits. The HEM survey identified 26 late time conductors.

During early 2018, ground moving loop electromagnetic (MLEM) surveys were completed over the remaining HEM target areas to better define those targets for drilling. During 2017-18, a total of 20 MLEM surveys were completed.

Three diamond holes and six RC holes were drilled for 2,168.9m at six HEM/ MLEM targets for base metals in 2017, as follows:

Two diamond drill holes completed for 731.2m at Zealous targeting tin associated with massive sulphides;

One diamond hole was completed for 297.7m at Telephone Dam Prospect targeting zinc-lead-silver;

Six RC holes completed for 1,140m to test four regional MLEM targets for base metals, with best results as follows:

  • 3m @ 0.4% Zn from 159m to EOH in 17EMRC006 at HEM / MLEM T2 (North), and
  • 39m @ 8% total graphitic carbon from 116m in 17EMRC001 at HEM / MLEM T5.

RC drilling of further regional HEM / MLEM targets commenced in early 2018. Results are awaited.

Background and Previous Exploration

The Project area is predominantly overlain by a shallow veneer of transported cover that has prevented exploration by early prospectors. Drilling by modern explorers has identified significant mineralised systems hosted within Palaeoproterozoic calcareous and iron-rich metasediments which are intruded by Hiltaba Suite Granites that are responsible for widespread gold, uranium and base metal mineralisation in the Gawler Craton. The discovery of high grade tin in 2012, which had previously not been recognised in the district, suggests a more complex mineralised history than previously thought.

The Project area has been explored since the 1970’s by companies including Pan Continental Mining, Asarco and Marumba Minerals for uranium and Broken Hill Type base metals associated with the Paleoproterozoic Hutchison Group metasediments. This resulted in the discovery of the Menninnie Dam lead-zinc-silver deposit (not part of the Project) and the Telephone Dam lead-zinc-silver occurrence.

During the 1980’s, the Shell Company of Australia and WMC continued to explore the area for lead and zinc. Shell (later Acacia) in joint venture with Aberfoyle then refocussed exploration onto copper and gold utilising calcrete sampling to identify and prioritise target areas for drill testing.

In 1997 Acacia, identified a strong gold-in-calcrete anomaly at the Weednanna prospect which is coincident with a prominent NNW-trending magnetic anomaly. Successive drilling campaigns identified gold mineralisation associated with skarn alteration and brecciation in the contact aureole of the adjacent granite. Weednanna is now known to be a magnetite breccia in carbonate altered rocks forming a skarn near the contact with a granite intrusion and containing elevated gold, bismuth, tin, uranium, lead and zinc.

In 2002, Aquila Resources acquired the Project tenements to explore for IOCG deposits similar to Olympic Dam. In 2006, Trafford Resources Ltd (Trafford) acquired the Project tenements from Aquila.

Trafford and IronClad Mining Limited (IronClad) made a substantial investment on the Project, including but not limited to, defining Direct Shipping [iron] Ore (DSO) in magnetite skarns, banded iron formations and near surface iron oxide deposits. Trafford established Mineral Resources totalling 224 Mt @ 28.8% iron in seven deposits, with 2.9 Mt @ 55.5% iron being either DSO or Dry Magnetic Separation product (source: Trafford Annual Report 2014).

In 2012-13, drilling programs by IronClad to test an outcrop of high grade hematite at the Zealous prospect, 13km NE of Wilcherry Hill, intersected high grade tin (cassiterite) hosted by a magnetite skarn which has been weathered to goethite and limonite. The best intercepts from these programs returned 7m @ 3.28 % Sn from 52m in 12ZLRC007 and 5m @ 2.29 % Sn from 128m in 13ZLRC001(2). The host rocks are Palaeoproterozoic sediments adjacent to a granite footwall.

The discovery of high grade tin in this region potentially represents a new and significant tin province in South Australia.

(2) Refer to Tyranna Resources Ltd's ASX Announcement dated 2 August 2016 for further details.