Base Metals
CANADA, Mabel Lake – Base Metals
Cullen has signed a farm-in agreement with a Vancouver-based private prospecting syndicate, comprising expert Vancouver-based geoscientists, to further examine a base metal prospect and, if Cullen so wishes, to earn an 80% interest in mineral concessions held by the syndicate- see announcement to ASX of 8th March, 2011.
The mineral concessions offered for farm-in (known as Mabel Lake or the “TL Property”) are located in south east British Columbia, in the region between the Cottonbelt and Sullivan base metal deposits (see Figure). This region contains the most extensive and highest concentration of base metal mineral showings and mineral deposit types in the Canadian Cordillera. However, mineral exploration in this area has lagged over the past 20 years, partly because of an obsolete (>30 year old) geoscience knowledge base, and, consequently, lack of modern exploration.
In 2011, an access track was completed and three WSW orientated trenches were excavated across the strongest biogeochemical anomaly outlined to date within the TL property. Trench samples were collected by diamond saw cutting and/or rock chip sampling, depending on the nature of the material exposed in the trenches. On average, approximately 2-4kg of sample material was collected and submitted to ACME Laboratories, Vancouver, for analysis of 41 elements following 4-acid digestion. Results that exceeded the upper detection limit of 10,000ppm (1%) for any of the targeted commodities were repeated using hot 4-Acid digestion for sulphide and silicate ores. In addition, rhenium, thallium, palladium and platinum were analysed in a number of samples.
The trenches exposed a 10–35m wide zone of sulphide-rich (pyrite-pyrrhotite) quartzite that is conformable within a host succession of calcsilicate-marble, biotite schist and micaceous quartzite. The mineralised zone has been confirmed over a strike length of 50m, and is open to the south east and north west (see Announcement to ASX of 21st June, 2011).
Assay results of trench samples show highly anomalous molybdenum and rhenium, with maximum Mo of 1339ppm and maximum Re of 580ppb, associated with the sulphide zone. In addition, there are anomalous concentrations of copper, bismuth, nickel, tin, silver and tungsten. Some 20-30m west of the molybdenum-rhenium zone, a separate zone of disseminated zinc mineralization (“black jack” sphalerite) was exposed with three samples in Trench 1 (not contiguous) ranging from 1.65% to 4.55% Zn. In Trench 2, a 4m interval (one 2m and two 1m intervals) averages 7.18% Zn (including 3m @ 8.98% Zn). In Trench 3, a 5m interval averages 1.59% Zn. The zinc-rich zones in trenches 2 and 3 are spatially associated with the sulphide-rich Mo-Re zone.
The exposed geology in the trenches fits with the geological characteristics of other strata bound, base metal deposits and prospects hosted by the Palaeo-proterozoic Monashee cover assemblage of calcsilicate-marble, quartzite, biotite-garnet-schist and paragneiss. The TL Property is located between and possibly on-trend with the Kingfisher and Big Ledge Lead-Zinc prospects to the northwest and southeast respectively. Geochemically, however, this discovery appears to differ somewhat from nearby strata bound lead-zinc prospects. The molybdenum-rhenium-rich zone, with anomalous concentrations of other metals, and associated with abundant quartz veining may indicate a possible genetic connection with the nearby Tertiary Ladybird granite intrusion.
During October 2011, Cullen flew a HeliTEM (helicopter borne EM) survey across the entire TL project area in order to characterise the known mineralization and prioritise targets. The survey identified seven discrete EM anomalies within the property, three with coincident discrete magnetic anomalies, and three other separate discrete magnetic anomalies. Coincident EM and magnetic anomalies, the latter measuring ~ 400m NW-SE, mark the position of the massive sulphide (pyrrhotite - pyrite) and zinc mineralization exposed in Cullen’s trenches (as described above) – see Figure. At about 150m depth, a ~4000m long conductor has been detected that is a high priority target for field investigations.
Detailed examination of the newly-acquired geophysical data will now be completed and planning for fieldwork in 2012, including drilling, is in progress.
NORTH TUCKABIANNA, near CUE – EL 20/714, 755, ELA’s 20/771,774 Cullen 100%.
The company has four exploration licences (two are applications) located approximately 30-50km east of Cue, covering the northern part of the Tuckabianna – Webbs Patch greenstone sequence, the eastern granite-greenstone contact, and possible greenstone enclaves within mapped granite. The principal exploration targets are gold and VMS-style base metal mineralisation in this under-explored northern section of the greenstone sequence, which is largely covered by colluvium and sand plain.
Base metals
Silver Lake Resources Ltd (ASX:SLR) on 10 November 2011 announced significant drilling results (including 9.3m @ 15.4% Cu with 2.0 g/t Au and 29.0 g/t Ag from 61m) from its high-grade copper discovery at Hollandaire. As shown in attached Figures, the Hollandaire discovery is adjacent to Cullen’s EL20/714 (~ 600m) and is hosted by the prospective Eelya Felsic Complex which extends into Cullen’s North Tuckabianna project area. Cullen interprets the Hollandaire deposit as a probable volcanogenic massive sulphide deposit. Worldwide, such deposits frequently occur in clusters.
An earlier biogeochemical survey by Cullen has delineated an arcuate trend (see Figure) that consists of domains with anomalous arsenic, lead-cadmium and cobalt-manganese. This broad geochemically anomalous trend may encompass known base metal occurrences in the Eelya Felsic Complex such as Hollandaire, Colonel and Mt Eelya (see figures).
Significantly, Esso Exploration and Production Australia Inc. (Esso) in 1977 detected EM anomalies on ground now held by Cullen using the airborne INPUT system. Field checking of these EM anomalies at the time located gossanous float with copper assays up to 0.28% close to some of the INPUT anomalies (see Figure). Shallow RAB drilling traverses (Symons, 1981) near some of these EM anomalies intersected anomalous copper and zinc values in the weathered zone; however, no deeper follow-up drilling was conducted.
Cullen’s geochemical sampling completed north of Silver Lake Resources’ Hollandaire Copper Prospect further supports the prospectivity of Cullen’s ground for potential VMS-style copper mineralization. Gossanous float and ferruginous gravel samples show an approximately 750 x 250m large anomaly with Cu, Bi and Au, to 2903ppm, 251ppm and 300ppb respectively (using an Aqua regia partial digest).
In light of the recent Hollandaire discovery, Cullen’s detection of broad geochemical anomalies and the Esso results, Cullen has commissioned an extensive helicopter-borne EM survey (VTEM) to confirm the priorities for further base metals exploration across the Eelya Felsic Complex as well as test large areas of Cullen’s property where bedrock is obscured by transported cover rocks and has not been subjected to modern EM surveying or effective exploration (see Figures). The EM survey is planned to be completed in the first Quarter of 2012 with Targets delineated to be drilled as soon as possible therafter.
(”Geotech Airborne Pty Ltd’s time-domain electromagnetic system (VTEM) utilizes modern advances in digital electronics and signal processing along with recent company research in the area of precision electromagnetic measurements “ – company website).
The planned VTEM survey will also cover two regional copper-thallium-silver anomalies located by a systematic plant geochemical survy in unexplored, sand-covered terrain, approx. 2km east of the mapped Tuckabianna greenstone sequence and 2-13km north of a mapped sedimentary inlier within the granite domain. The base metal anomalies lie approximately 45km southwest of the Quinns-Austin Copper-Lead-Zinc deposit and 13km northeast of a copper-lead-zinc prospect on the eastern side of the Tuckabianna sequence (see Figure). A 31-hole, 1000m reconnaissance RAB/AC programme, completed in 2011, detected low-order Zinc anomalism in saprolite and sap rock (weathered bedrock). Zinc concentrations in the transported overburden are 60-90ppm, the lateritic gravel below has 700ppm zinc and concentrations in the saprolite show a maximum of 570ppm zinc.
Gold
Field reconnaissance work and a data review were carried out along the Tuckabianna shear zone. Regional geochemical sampling of ferruginous gravel in early 2010, combined with publicly available data from re-sampling of buried ferruginous gravel show gold, bismuth and molybdenum anmalism along the northern extension of the Tuckabianna shear zone (11-29ppb Au). Historic RAB and Aircore drill intercepts also show anomalous gold zones (200-900ppb) extend into Cullen’s tenement and have not been sufficiently tested by past exploration. Other gold targets include magnetic features in and along the felsic sequence west of the Tuckabianna shear zone.
In 2011, four gold target areas, “CTA001 – 004”, were tested by a reconnaissance drilling programme comprising 63 holes for 2356m of air-core and 922m of RAB. The programme encountered weak gold mineralization (max. 0.36g/t Au in a 4m composite sample from 60m depth) in areas CTA001 and CTA003, together with weak base metal mineralization at target CTA002 with anomalous values of copper, silver and zinc values being recorded in adjacent holes. A broad association of anomalous gold (up to 1.20g/t in 1-metre split), arsenic (up to 58ppm) and tellurium (up to 13ppm) in the southwestern part of the target area CTA003, situated only 3.5km northeast of the historic White Well open pit gold mineralization and along strike of the Tuckabianna Shear zone, is particularly encouraging and warrants further drilling.
