Paterson Project

The Company’s Paterson Project is located in the Paterson Province of Western Australia, a region which is host to a number of world-class gold and copper deposits, including Newcrest's Telfer gold and copper Mine and Metals X's Nifty copper Mine. The region has seen a marked increase in exploration activity recently, following two major new finds within 12 months: Winu, a potentially large sediment-hosted copper deposit discovered by Rio Tinto (ASX:RIO); and Havieron, an intrusion-related gold and copper deposit discovered by AIM-listed Greatland Gold PLC (AIM:GGP).

Carawine’s Paterson tenements are known to contain host formations and structures common to the major mineral deposits in the area. The tenements were applied for prior to the significant increase in exploration and tenement activity witnessed in the region in recent times, and were selected on the basis of proximity to known mineralisation, shallow depth to basement, hosting prospective stratigraphy and geophysical anomalies.

Carawine’s Paterson tenements

The Paterson Project comprises six granted exploration licences and five exploration licence applications (one subject to ballot) over an area of about 1,500km2 across nine regions: Lamil Hills, Trotman South, Red Dog, Baton, Sunday, Cable, Puffer, Eider and Magnus.

Carawine has a farm-in and joint venture agreement with Rio Tinto Exploration Pty Ltd (“RTX”), a wholly owned subsidiary of Rio Tinto Limited (ASX:RIO), whereby RTX have the right to earn up to 80% interest in the Baton and Red Dog tenements by spending $5.5 million in six years to earn 70% interest and then sole funding to a prescribed milestone.

Carawine also has a farm-in and joint venture agreement with FMG Resources Pty Ltd, a wholly owned subsidiary of Fortescue Metals Group Ltd (“Fortescue”) (ASX:FMG), whereby Fortescue have the right to earn up to 75% interest in the Lamil Hills, Trotman South and Sunday tenements by spending $6 million in seven years.

The Company retains full rights on its remaining five exploration licence applications. Cable, Magnus, Puffer and Eider are located in the western part of the Paterson Province, and cover parts of the Broadhurst, Yandanunyah and Isdell Formations.  The Cable and Puffer tenements straddle the Vines Fault, a major regional structure associated with several exploration prospects.  The Broadhurst Formation is host to Metals X’s Nifty copper deposit, with Magnus and Puffer located just 1km and 20km respectively from Nifty.

Carawine will progress these tenements towards grant while it reviews work completed by previous explorers to identify areas on which to focus initial target generation activities.  The Company will continue to consider all options for advancing its Paterson project tenements, including progressing exploration programs in its own right, and/or possible joint venture opportunities.

    West Paterson JV (RTX earning 70%)

    Baton

    The Baton tenements are located about 100km north of the Nifty copper deposit, and contains copper, lead and zinc mineralisation hosted by dolomitic breccia in a sequence of dolomite, carbonaceous siltstone and carbonaceous shale of the Broadhurst Formation (host to the Nifty deposit). Brecciation is associated with a major NNW-trending, ENE-dipping fault that separates carbonaceous siltstone units to the west from crystalline carbonate units to the east. The style of mineralisation and stratigraphic setting of Baton is similar to that of the Warrabarty zinc deposit and the Millenium prospect. Several early-stage but compelling magnetic and gravity anomalies have been identified from detailed airborne and ground geophysical surveys at Baton, similar to those observed at the recent Winu and Havieron discoveries (refer ASX announcements 8 July & 27 August 2019):

    • Javelin - Three shallow (<100m) local magnetic anomalies, two with coincident gravity high anomalies. Anomaly J1 is particularly prospective in that a very clear gravity high is centred directly over the magnetic high, indicating the anomalies may have the same source (dense, magnetic mineralisation or primary source rock).  Anomaly J2 is similar to the geophysical response from Havieron, with the peak gravity high slightly offset from the magnetic high, possibly representing demagnetised/alteration zonation.  Anomaly J3 also has a strong target model response, with an intense gravity high offset from but parallel an anomalous magnetic unit.
    • Wheeler – Elongate magnetic anomaly about 800m-1000m in length, with a separate magnetic anomaly immediately to the north, located at the contact of Broadhurst and Isdell Formations. Both magnetic anomalies have associated gravity anomalies. Target W1 comprises a discrete gravity high coincident with and centred over the peak of the main magnetic anomaly. Targets W2 and W3 are both slightly offset but strongly associated with adjacent magnetic anomalies and potentially demagnetised/alteration zones. A single historic drill hole has intersected skarn style alteration with magnetite and low tenor copper anomalism near target W2 (2m @ 300ppm Cu from 96m in drill hole THRC0251).
    • Discus - Strong magnetic unit 400m-600m long in Isdell Formation and untested by drilling. The discrete magnetic anomaly at Discus is associated with a broad gravity low which may represent deeper weathering in this area.  A subtle, low-order gravity anomaly to the north-west may represent offset mineralisation or be related to primary rock type.

    Gravity and magnetic anomalies at Javelin, Wheeler and Discus

    • Herb - Complex, extremely strong elongate magnetic anomaly about 3km long, oriented NW-SE to NNW-SSE. Order of magnitude higher magnetic strength compared with surrounding rocks and magnetic anomalies at ~2,000nT.  Untested by drilling, potential Iron-Oxide Copper Gold (“IOCG”) target. The location of this anomaly adjacent to the Vines Fault, and its order of magnitude higher intensity compared with others in the area is analogous to Encounter Resources’ Aria IOCG prospect and Metals X’s sediment hosted Holly Pb-Zn-Cu prospect.
    • Nolan – Complex curved anomaly about 500m across, oriented NE-SW and ~200nT amplitude. The anomaly may represent alteration within a structurally favourable fold closure with a NW-SE axis. Hosted by Coolbro sandstone adjacent to Broadhurst formation and has not yet been tested by drilling.
    • Anomalies HE1 and HE2 - Two small, isolated anomalies each ~300m in length, oriented NNW-SSE and ~50-100nT amplitude.

    Baton tenements detailed magnetic image with gravity survey areas and targets.

    Red Dog

    The Red Dog tenement is located approximately 16km northeast of the Nifty copper mine in moderately deformed, low grade metasedimentary rocks along the NW margin of the Yeneena Basin. The tenement is considered prospective for stratiform Cu-Co deposits e.g. Nifty and Maroochydore, sediment-hosted Pb-Zn deposits e.g. Warrabarty within the upper Broadhurst and Isdell Formations and intrusion-related gold and copper mineralisation (e.g. Havieron, Telfer).

    In addition to targets generated from the wor of previous explorers, Carawine completed a detailed VTEM™ Max helicopter-borne electromagnetic (EM) survey with the aim of delineating discrete conductive anomalies associated with sulphide mineralisation (e.g. Rio Tinto’s Winu discovery) or resistive zones associated with alteration (e.g. silica-dolomite alteration associated with the Nifty copper deposit).

    The VTEM survey was successful in identifying twelve conductive (RDC01 to RDC12) and four resistive (RDR01 to RDR04) anomalies in new areas and at previously identified prospects, as follows (refer ASX announcement 29 July 2019):

    • Flying Tiger – six conductive anomalies and one resistive anomaly in Broadhurst Formation (host to the Nifty copper deposit), associated with tightly folded stratigraphy and offsetting NE-trending faults. Similarities in geological and structural setting to the Nifty copper deposit.
    • Bravo – two discrete conductive anomalies within the Broadhurst Formation adjacent to a large interpreted dolomite alteration zone.
    • Leatherneck – two resistive anomalies either side of an isolated conductive anomaly in Broadhurst Formation, adjacent to anomalous zinc (to 2,380ppm) and copper (to 375ppm) in limited historic drilling.
    • Anomaly RDC12 – conductive anomaly in Broadhurst Formation, 2km south and along strike from the Bulgamulgardy copper prospect, identified by BHP in drill hole BMD1 (3.2m @ 1,460ppm Cu and 1,240ppm Zn).
    • Anomaly RDC07 – broad conductive anomaly northwest of the Leatherneck prospect.
    • Anomaly RDC09 –elongate and distinct conductive anomaly within the Broadhurst Formation. Nearby historic drilling with anomalous copper and cobalt values, including 2m @ 542ppm Cu and 375ppm Co from 60m in drill hole KH103.
    • Earl – Discrete and strongly resistive anomaly on the edge of a large interpreted felsic intrusion within interpreted Malu and Puntapunta Formations (host to the Telfer gold-copper deposit).

    Red Dog tenement VTEM conductivity image and targets (late time Ch 48BZ image)

    For details of the farm-in and joint venture agreement with Rio Tinto Exploration Pty Limited refer to the Company's ASX announcement dated 28 October 2019.

    Coolbro JV (Fortescue earning 51%)

    Trotman South and Sunday are located 27km south of the Telfer gold mine and immediately west of the Maroochydore Cu-Co deposit. Trotman South has many of the structural elements normally associated with gold deposits in the Telfer region, i.e. domes/anticlines and WNW to NW-striking faults.  Interpreted demagnetised zones in otherwise strongly magnetic layers in gabbro-monzonite sills, could represent discrete alteration halos to gold mineralisation, with anomalous bedrock intersections in Rotary Air Blast (“RAB”) drilling occurring adjacent to one such zone.  Base metal (Zn, Co) anomalism in historic drilling also occurs within the tenement, associated with a variety of dolomitic sediments and intrusive bodies, indicating the potential for both sediment-hosted and intrusion related (skarn) styles of gold and base metal mineralisation. Sunday contains mapped occurrences of the Broadhurst Formation, host to the Nifty copper and Maroochydore copper-cobalt deposits.

    Lamil Hills, approximately 25km northwest of the Telfer gold mine, is considered prospective for intrusion-related, Telfer-style gold and copper mineralisation with similar host stratigraphy and the presence of domal structures on the tenement, and identified gold-copper mineralisation on adjacent tenure. Anomalous gold lag samples in outcrop on Carawine’s tenement have been reported by previous explorers.

    For details of the farm-in and joint venture agreement with FMG Resources Pty Ltd refer to the Company's ASX announcement dated 13 November 2019.

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