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PROSPECT CREEK GOLD PROJECT

Key Highlights

  • Untested porphyry and epithermal targets.
  • Two established prospects.
  • Significant gold intersections from previous drilling, including: 52m @ 2.11 g/t Au. 
  • Project package only lightly explored.

Asset Summary

ActivEX Prospect Creek Gold Project (81.2 km2) is located in the Biloela district of central Queensland and consists of a single tenement, EPM 14121.

Exploration Potential

The district is highly prospective for both porphyry and epithermal style mineralisation and contains a number of existing deposits, including the following:

                         Table 1. Significant metal deposits within Central Queensland

The Project includes two established targets, with drilling completed by previous explorers and initial reconnaissance drilling by ActivEX.

Significant drilling intersections from the Prairie Creek epithermal prospect include:

  • 52m @ 2.11g/t Au, including 6m @ 6.55g/t Au
  • 16m @ 1.35 g/t Au
  • 18m @ 1.75g/t Au
  • 8m @ 2.05 g/t Au
  • 13m @ 2.78 g/t Au

ActivEX has also completed extensive soil sampling, rock chip sampling, and geological mapping.

Exploration targeting concepts include:

  • Potential for epithermal mineralisation at the Prairie Creek prospect. This area contains significant intersections of gold in previous drilling, and has the potential to be extended along strike. A number of areas with anomalous gold-in-soils and partially outcropping epithermal veins remain untested by drilling.
  • Potential for porphyry or epithermal mineralisation associated with extensive areas of alteration at the Gossans West prospect. No ground geophysics has previously been completed at this prospect, which could be used to target future drilling.
  • Several other areas have anomalous stream and soil geochemistry and require follow up.
  • Tenement has been under-explored with very little focused exploration in the past.

Location and Access

EPM 14121 is located 20km southwest of Biloela, in central Queensland. The area is pastoral land and forest, used predominantly for cattle grazing, and is accessed by secondary bitumen roads and station tracks. The western half of the tenement may be accessed from Banana but is predominantly steep hilly country which is difficult to traverse (Figure 1).

The tenement lies in the western portion of the Monto 1:250,000 sheet area and centred on longitude 150°22’ E and latitude 24°32’ S.

                                 Figure 1. Prospect Creek Gold Project Location

Tenure

Project tenure is comprised of one granted Exploration Permit with an area of 81.2km2 (Table 2)

                             Table 2. Summary of individual tenement details

                                  Figure 2. EPM 14121 location and prospects

Native Title

There are two Native Title Claim Applications present in the project area. An Application by the Gaangalu Nation (National Native Title Tribunal Application QC2012/009) covers the northern permit area. An Application by the Wulli Wulli People (National Native Title Tribunal Application QC2000/007) covers the southern portion of the permit, south of the Banana Range.

Historical Exploration Highlights

Mineral exploration has been carried out in the area since the 1970s, however remarkably few detailed exploration programs have been completed within EPM 14121. Previous work is summarised in Table 3 below.

Geological Setting

Regional Geology

The Prospect Creek Gold Project contains dacitic and rhyolitic volcanic units from the Torsdale Beds, which form part of the Permian-Carboniferous Auburn Arch. These have been intruded by the Glandore Granodiorite, which occupies the axial portion of a broad, faulted, anticlinal fold.

The Torsdale Beds are surrounded by the Camboon Volcanics (Permian) and sediments associated with the formation of the Bowen Basin.

Major faults trend northwest to north-northwest through the project area, and include the Mount Bertha, Barfield, and Drumberle Faults (Figure 3).

                                        Figure 3. Regional geological setting

Summary

The Prospect Creek Gold Project was acquired to explore for epithermal and porphyry style mineralisation, which is known to occur within the district. Two established prospects have been identified at Gossans West and Prairie Creek, and the tenement also contains a number of untested regional geochemical anomalies.

Previous Exploration by ActivEX

ActivEX exploration activities over the Prospect Creek Gold Project have included:

  • Review of prospective areas and identifying priorities and exploration strategies.
  • Compilation and assessment of the large amount of exploration data available for the project area.
  • Field activities involving reconnaissance geological traversing, with limited rock chip sampling, incorporating familiarization of known prospects.
  • Geological mapping and sampling of the known prospect areas.
  • Extensive soil sampling (2,869 samples) over both the Prairie Creek and Gossans West prospect areas, particularly utilising low element detection methodology and portable XRF techniques.
  • Drilling of initial targets areas (Prairie Creek and Gossans West).
  • Interpretation and modelling of geochemical data.
  • An Honours thesis by University of Queensland student Rhys Lennings was completed in 2010 with the assistance of ActivEX Limited.

Prospects

Gossans West

The Gossans West prospect contains intense clay-silica alteration zones forming a number of prominent hills throughout the area. These zones were initially interpreted by CRAE and Kennecott to be altered breccia pipes, but are now thought to represent lithologically-controlled alteration of volcaniclastic units. In either case, the mineral assemblage (alunite, dickite, quartz, kaolinite) is consistent with advanced argillic alteration which is often associated with porphyry and epithermal systems.

Advanced argillic alteration in these systems is typically barren, but is an important indication of the presence of hot, acidic fluids and also the potential for porphyry-style mineralisation at depth. The alteration at Gossans West is intense and spatially extensive (occurring throughout an area of approximately 5km x 7km), suggesting a large body of fluids and the potential for significant mineralisation.

ActivEX has completed regional soils (500m line spacings, laboratory assay) and more detailed prospect-based soils (50-100m line spacings, Niton XRF analysis) at Gossans West. Both campaigns have identified low level copper anomalies (up to 234ppm Cu) which warrant follow up.

ActivEX has also completed a first pass RC drilling program consisting of six holes, for a total of 905m. These holes targeted underneath three of the alteration zones, but failed to intersect significant mineralisation.

Advanced argillic alteration zones can, however, be located peripheral to the mineralizing systems. Future exploration targets therefore include the potential for a porphyry system located marginal to the alteration zones, or along key structures. Ground geophysics, such as Induced Polarisation surveys, could be used to locate sulphides and better target future drilling. No ground geophysics has been completed at this prospect to date, leaving significant scope for discoveries.

Prairie Creek

The Prairie Creek prospect consists of partially outcropping epithermal gold-bearing quartz veins, hosted by andesitic tuffs and underlying granite intrusives. Rock chip samples from the veins have returned up to 11.8ppm Au, and soil sampling has defined a series of anomalous zones.

A total of fourteen holes have been drilled by previous explorers (ACM Gold and CRAE) and were predominantly designed to test underneath the rock chip samples. Significant intersections included:

  • 52m @ 2.11g/t Au, including 6m @ 6.55g/t Au
  • 16m @ 1.35 g/t Au
  • 18m @ 1.75g/t Au
  • 8m @ 2.05 g/t Au
  • 13m @ 2.78 g/t Au

A full list of intersections is included in Appendix 1. ActivEX Limited has also completed two RC holes, targeting soil anomalies, however these returned only weakly anomalous results.

The zone of known veining is at least 85m wide and has been mapped over 450m of strike length in the drilled area. Similar vein sets have been identified in other parts of the prospects, over a strike length of at least 1km. The majority of these areas remain untested by drilling and significant scope therefore remains (Figure 4).

                   Figure 4. Prairie Creek Section 5000N, showing drilling intersections

Tarramba Creek - Glenhalvern

The Tarramba Creek prospect consists of a number of narrow, gossanous zones containing up to 8.7% Cu, 1,760ppm Zn, and 300ppm Ag in rock chip samples taken by previous explorers. Pyrite-silica-sericite alteration has been identified by CSR, and was noted to occur over a zone of 1km by 2.2km. Soil sampling completed by CSR identified some areas of anomalous copper and gold, which require follow up. ActivEX has not completed any significant work at this prospect.

                                                                          Appendix I

Full List of Significant Drill Intersections

Prairie Creek