AusQuest Limited (ASX: AQD) has successfully applied for funding assistance under the Western Australian Government’s ‘Exploration Incentive Scheme’ (EIS), with half of the direct cost ($120,000) of diamond drilling at the Tea Tree Prospect at its Balladonia Project in the Fraser Range region to be covered under the scheme.
Recently completed air-core drilling at the Tea Tree Prospect identified the potential for Broken Hill Type (BHT) and/or iron-oxide copper-gold (IOCG) mineralisation within a thick sequence of strongly magnetic rocks, interpreted to reflect mineralised banded iron formation (BIF).
Similar packages of rocks are found within the Eastern Succession of north-west Queensland (the Mt Isa Region), where a number of BHT and IOCG deposits have been discovered, suggesting the potential for similar style deposits within the Balladonia area.
A detailed gravity survey (400m x 100m) was subsequently completed over the Tea Tree prospect to define areas of increased thickness and/or structural complexity where mineralisation is most likely to accumulate, along the 10km strike of the BIF sequence.
A moderate-to-strong gravity anomaly (three milligals) was outlined over the area of increased magnetic response where the initial encouraging air-core drilling results had been obtained, confirming it as a high-priority target for drilling.
A programme of three diamond drill-holes, partly funded by the EIS, is planned for early 2022 once access has been cleared and a suitable drill rig is available.
AusQuest’s Managing Director, Graeme Drew, said the upcoming diamond drilling program had the potential to deliver hugely valuable insights into the prospectivity of the Balladonia Project.
“If a mineralised BIF sequence is confirmed, then comparisons that can be made with deposits found in north-west Queensland will come into sharper focus, and this could in turn lead to significant increases in exploration spend and subsequent discoveries,” he said
“Exploration in this area is still in its infancy given the extensive cover that hides much of the geology – and the more we learn about the area, the more likely we are to make a discovery.”
The Balladonia Project is subject to the Strategic Alliance Agreement (SAA) with a wholly-owned subsidiary of South32.
For further information please visit: http://www.ausquest.com.au/