Lucapa Diamond has identified two large and highly conductive base metal targets from the first geophysical survey conducted at its Merlin diamond project in the Northern Territory, Australia.
The programme, it said, involved a new generation helicopter-borne time-domain electromagnetic (HTDEM) survey over the 234 square kilometres (sqkm) area, covering both the Merlin Mineral Lease (MLN1154) and the surrounding Exploration Licence (EL26944).
Lucapa said the base metals targets occur along structures in an area of Proterozoic sediments with very similar geology to those which host the world-class McArthur River zinc-lead resource approximately 50km to the north of the project area.
This area has previously been identified as having the potential to host mineralised structures and therefore is of high interest for hosting base metal deposits.
Glencore’s McArthur River base metal mine, which is one of the world’s largest deposits of zinc and lead, has been operating for 30 years along structures that extend through the Merlin exploration licence area.
Lucapa said the geology of the Merlin area is considered prospective for similar types of deposits and is highly suitable for electromagnetic (EM) surveys due to limited conductive cover in most areas of the tenements.
“These are highly promising results in an area which has never been exposed to the latest geophysics technology and which sits just 50km from the giant McArthur River zinc-lead mine,” said Lucapa managing director Alex Kidman.
“Given the highly prospective nature of the targets identified, we are already considering the next phase of exploration, which will probably comprise ground-based geophysics to further define the targets.”
Lucapa will now undertake the next phase of processing, interpretation and modelling, which is suitable for looking for smaller and less conductive targets.
This phase, it said, is expected to identify any new kimberlite targets or extensions to existing kimberlites along with any smaller base metal targets.
Mathew Nyaungwa, Editor-In-Chief, Rough & Polished
