VANCOUVER, BC, Oct. 26, 2021 /CNW/ - Essex Minerals
Inc. (the "Company") (TSXV: ESX) (OTCQB: ESXMF) (FRA:
EWX1) is pleased to announce that preliminary exploration by the
Company's technical team has outlined a very large
copper-molybdenum (with gold and silver) porphyry target within the
Mt Turner project area in north Queensland, Australia.
Highlights
- Assay results from 5,517 soil samples has identified a coherent
copper in soil anomaly (>100ppm) flanking a molybdenum in soil
anomaly (>10ppm) over a 4km x 4km area with discrete gold-silver
and lead-zinc anomalies peripheral to the main Cu-Mo
anomalism.
- The copper anomaly is coincident with a curvilinear magnetic
low and the molybdenum anomaly is coincident with and flanking a
circular magnetic high identified in a regional aeromagnetic survey
flown by previous operator Mega Uranium in 2006-7.
- Peripheral gold-silver anomalism is associated with breccia
bodies and veins localised by major faults marginal to the main
porphyry centre.
- The zonation of the soil anomalies coincident with the
aeromagnetic features are classic signatures of a large
copper-molybdenum porphyry system.
- Re-logging of drill core from a 1977 Government reconnaissance
drilling program has shown that the only drill hole near to the
porphyry target ended at 290m
downhole depth in near ore grade copper and molybdenum (0.187% Cu,
0.075% Mo) and contains alteration and multi-phase mineralisation
indicating that the drill hole was terminated well above the main
target zone.
- The Company has entered discussions with an Australian group
which has expressed an interest in an option to earn in and acquire
the Mt Turner property as the cornerstone project in a critical
metals exploration listing on the Australian Stock Exchange.
- The option and earn-in joint venture would fund a significant
staged exploration program on the Mt Turner copper-molybdenum
target.
Essex Minerals President and CEO Paul
Loudon: said: "Demand for both copper and molybdenum is
forecast to increase by up to 300% by 2040 according to the
International Energy Agency's report on Critical Minerals in the
Clean Energy Transition.
"With such a strong demand outlook, we are very pleased that our
initial exploration has demonstrated the potential for the
discovery of a large copper-molybdenum (with silver and gold)
deposit at Mt Turner.
"Having incubated the project with initial exploration
expenditure, Essex is now looking
to leverage its position in the project by joint venturing the next
round of exploration expenditure then spinning out the property
into a new critical minerals listing.
"This project incubation then spinout, particularly where we can
retain a royalty and a right to provide stream or project finance,
is fundamental to the Company's business growth model."
Summary Geology and Mineralisation of the Mt Turner
Project
The Mount Turner Property lies in the western portion of the
Georgetown Inlier, which constitutes the bulk of the proclaimed
Etheridge Goldfield. It consists of
variably metamorphosed and deformed sedimentary and volcanic rocks
of Palaeo- to Mesoproterozoic age, intruded by Mesoproterozoic
granites.
The Proterozoic rocks have been intruded by Siluro-Devonian age
granitic rocks during a period of subduction and underplating that
is thought to have occurred during the Tabberabberan cycle of the
Tasman Orogen (ca 430-380 Ma).
The Georgetown Inlier subsequently experienced a period of
felsic intrusion and accompanied sub-aerial volcanism during the
Carboniferous to Permian period (ca 350-230 Ma) associated with
extension and rifting that developed during the Hunter-Bowen cycle
of the Tasman Orogeny. This magmatism is termed the Kennedy
Association, which consists of widespread and voluminous extrusive
and intrusive igneous rocks, producing a number of large volcanic
subsidence structures. This magmatic event was responsible for the
5 million ounce Kidston gold deposit located some 70 kilometres to
the SE of Mt Turner.
The Permo-Carboniferous Mt Turner intrusive complex, which is
centred within the property, consists of multiple phases of
rhyolite to micro-granodiorite dykes, stocks and associated
breccias, hosted by Meso-Proterozoic Mount Turner Granite and
metasediments of the Palaeo-Proterozoic Lane Creek Formation. The
overlying subaerial volcanics are postulated to have preserved the
porphyry-style mineralisation.
The property was initially examined during the 1975 field season
by geologists of the Australian Government's Bureau of Mineral
Resources (now Geoscience Australia) and the Geological Survey of
Queensland after discovery of
extensive hydrothermal alteration around Mt Turner.
The subsequent report (Baker & Horton, 1982) described the
intrusive complex as a porphyry copper- molybdenum system with
zoned polymetallic mineralisation. The report was based on 11
widespread, shallow vertical drill holes, <100 metres in depth
and 4 diamond holes, only one of which was located near the
intrusive centre. None of the drill holes were assayed in their
entirety.
A portion of Mt Turner was held by Kidston Gold Mines ("KGM") in
1994-1998 and assessed for gold only, then held by Mega Uranium in
2006-2007 and explored for uranium. No follow-up exploration has
been undertaken on the porphyry copper-molybdenum potential until
the ground was staked in 2019 by KNX Resources Limited ("KNX") and
subsequently joint ventured to Essex in 2020.
Essex and KNX each own 50% of
the Mt Turner property. On September 22,
2021, Essex announced that
it had agreed to acquire all the issued and outstanding shares in
KNX in exchange for the issuance of 5,000,000 ordinary shares and
5,000,000 two-year share purchase warrants in Essex to the shareholders of KNX. The purchase
is subject to the approval of the TSX Venture Exchange. On
completion of the acquisition, Essex will own 100% of Mt Turner.
Exploration results to date by Essex-KNX Joint
Venture
The ESX-KNX Mt Turner Property comprises two granted exploration
permits totaling approximately 100 sq km.
Soil sampling in a 100m x
100m grid by KGM (2,336 minus 80 mesh
and 2,462 BCL samples) and Essex
(719 samples) has outlined a 4km x 4km soil anomaly which shows
classic Cu-Mo zonation – copper in soil flanking a molybdenum core
(See Figure 1). This area is sufficient to contain a very large
(+500Mt) deposit.
Aeromagnetics (100m flight lines)
flown by Mega Uranium in 2006-7 shows a curvilinear NW trending
magnetic low corresponding to magnetite destruction alteration,
with complex magnetite highs in the centre, which is the classic
copper porphyry around a molybdenum rich core signature (See Figure
2). The features in the magnetics are coincident with the copper
and molybdenum soil anomalies.
Gold-silver and base metal soil anomalism occurs on the
periphery of the copper-molybdenum core zone associated with
breccia bodies at Balaclava Hill, immediately to the north west of
Mt Turner, in major faults such as the 14 km Drummer Hill Fault,
and in association with historically mined, high-grade Ag-Pb-Zn
veins. The peripheral breccias and Drummer Fault remain excellent
targets for gold mineralization.
Rock samples collected during detailed mapping by Essex field team demonstrate the property has
been subjected to multi-phase intrusive events which provides the
potential for multi-stage mineralization episodes, therefore
potential for higher grades.
One Queensland Government drill hole (NS4) to 295m in 1977 drilled peripheral to the porphyry
target ended in near ore grade mineralization – 0.187% Cu, 0.075%
Mo.
Re-logging of the core from this hole by Essex has shown multi-lithological intrusive
clasts in breccia at depth which also suggest a poly-phasal
intrusive history.
The re-logging has also demonstrated early widespread potassic
alteration then an overprinting phyllic event (sericite) then a
late stage second potassic event associated with multi-stage vein
mineralization. This pattern of alternation conforms to the classic
model for multi-stage mineralization. The later stage second
potassic event towards the end of the hole also suggests that the
hole ended above the main mineralization target zone.
The next phase of exploration will involve detailed ground
geophysics to define the targets ahead of an initial drilling
program.
Management has been investigating opportunities for introducing
a joint venture partner to the Mt Turner project and has entered
discussions with an Australian group which has expressed an
interest in an option to earn in and acquire the Mt Turner property
as the cornerstone project in a critical minerals exploration
listing on the Australian Stock Exchange.
About Essex
Essex Minerals is an exploration and development company focused
on mineral exploration and mine development and finance
opportunities where it can adopt an option earn-in and joint
venture model. The company identifies geological teams that have
already expended the time and capital to assemble top quality,
advanced projects, with a particular emphasis on gold projects in
Tier 1 jurisdictions, where the Company can earn an interest by
funding exploration. Management's time is shared across several
different projects, as the geological teams already in place at the
project level manage the approved exploration and development
programs. This strategy has the potential to accelerate the
growth in shareholder value for Essex by earning an interest in a range of
projects of merit in a much shorter time frame than otherwise would
be possible.
Qualified Person
All of the scientific and technical information contained in
this news release has been reviewed and/or prepared by Mr
Lee K. Spencer, BSc (Hons), MSc,
MAusIMM, a "Qualified Person" within the meaning of National
Instrument 43-101 - Standards of Disclosure for Minerals
Projects.
ISSUED ON BEHALF OF ESSEX
MINERALS INC.
Paul Loudon
President & CEO
http://www.essexminerals.com/
Neither the TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in the policies of the TSX
Venture Exchange) accepts responsibility for the adequacy or
accuracy of this release.
SOURCE Essex Minerals Inc