Snake Well Gold Project

/Snake Well Gold Project
Snake Well Gold Project 2019-04-11T02:43:12+00:00

LOCATION

The Snake Well Gold Project is located 450 km north of Perth and 170km north east of Geraldton in the Murchison region of Western Australia.

The Snake Well Gold Project was first mined in the 19th century with the discovery of the Royal Standard Deposit.  The Royal Standard Mine was worked from 1897 until it closed in 1937, having produced 68,000t at 13.1g/t Au. Numerous exploration programs have been completed in the area since the mine closure, with a surfical gold anomaly identified at Rabbit Well in the 1980’s by Polaris Pacific NL, followed up by Conzinc Riotinto Australia Ltd (CRA) following up in the early 1990’s identifying both laterite and bedrock mineralisation.

Between 1997 and 2002 Roebuck Resources NL drilled numerous targets in the area, defining a number of deposits including the Mixy vein gold deposit and A-Zone gold and base metals deposits.

In 2016 Kalamazoo Resources conducted trial mining at the Mixy deposit, producing 4,459oz of gold at 13.1g/t Au.

Adaman Resources purchased the project in 2018 from Kalamazoo resources and is currently conducting a feasibility study into processing ore form the Mixy and A-zone deposits at its wholly owned Kirkalocka mill.

STATUS

Based on current designs Snake Well is planned to produce 480kt of Ore at 4.2g/t over 13 months to supplement the mill feed at Adaman Resources’ wholly owned Kirkalocka mill. Grade Control drilling is planned to commence in the second half of 2019.

GEOLOGY & MINERALISATION

The Snake Well project is hosted in the Tallering Greenstone belt, a north easterly trending layered sequence of mafic and felsic volcanic and intrusive rocks and sediments. Mineralisation is localised to the south of the greenstone belt in the Southern Shear Zone. Outcrop is poor, however interpretation of aeromagnetics and drilling programs has identified a sequence of basalts with interbedded pelitic sediments which have been metamorphosed to mafic schists.

Primary mineralisation occurs in two styles, with the vein hosted gold present at Mixy, and other prospects such as Calisi, associated with shear zones, porphyry intrusives and significant quartz veining. Further to the west the A-zone gold and base metals deposit, and Conquistador base metals deposit, are volcanic hosted massive sulphides, with gold hosted in a quartz vein at A zone.

Gold also frequently occurs in lateritic gravels across the project, generally of lower gold grade than the primary deposits.

EXPLORATION POTENTIAL

The Snake Well project area has significant exploration potential, with multiple prospects identified within the region.

The Rabbit Well prospect, which stretches 2km west from Mixy has had several drilling campaigns conducted. Significant intercepts include 31m at 2.26g/t Au from 40m, 4m at 28.7g/t from 44m and 8m at 9.5g/t from 76m.  The continuity of mineralisation between holes and significant nugget effect has made exploration difficult. However, improved understanding of the controls on mineralisation gained from trial mining at Mixy coupled with modern assaying techniques is helping to build the regional picture for ongoing exploration.

There are several standalone prospects that have been drilled historically.  For example, the Asp prospect located along strike from Mixy (eg 17m @ 3.1g/t Au) and Armstrong’s West prospect  to the south west (eg 12m @ 1.31g/t Au) show prospectivity, while north of Mixy at Rabbit Well North one hole has returned intercepts of 2m @ 6.26g/t from 54m and 6m @ 2.47g/ from 90m.

Strike extensions to the Royal Standard deposit have not been fully explored. 2017 drilling by Kalamazoo contained 1m @ 1.01g/t from 19m, 2m @ 2.75g/t from 37m and 1m at 9.57g/t from 78m, in three holes on the same section. This indicates that there are extensions to the orebody that are highly prospective if locations of the ore shoots can be identified.

Additional to the known gold mineralisation there is also base metal mineralisation at A zone and at the Conquistador VMS prospect. Strong zinc mineralisation has been identified in a number of holes, at Conquistador with intercepts including 4m @ 8.2% Zn and 2.4m @ 12.2% Zn. A potentially commercial kaolin deposit has also been identified to the west of A Zone.