JACKADERRY PROJECT (INCLUDES HISTORIC CANGAI COPPER MINE)

Key Points:

  • The Jackaderry Project is on an ultramafic system that is well known for high-grade copper-cobalt;
  • Exceptional high-grade JORC Inferred Resource for Cangai Copper Mine derived from 3D modelling of legacy data at 3.2MT @ 3.35% Cu, representing circa 108,000MT contained copper;
  • The drilling program, which is slated to begin soon, will initially target additional supergene ore mineralisation at Cangai Mine that 3D JORC modelling has confirmed is open in all directions;
  • Inaugural testing on legacy core samples from the mine for cobalt should determine an Inferred Resource; and
  • Significant exploration and mineral size resource upside as desktop review is broadened across the entire project area and incremental drill targets identified.

The Jackaderry Project includes three tenements.

Jackaderry Project, New South Wales

Exploration Rationale: Rediscovering the Cangai Copper Mine

The Jackaderry Project is located in the New England Orogen, which is a significant east Australian mineral province that hosts significant Cu-Au-Co deposits. CCZ’s aim was to target high-grade areas with the goal of developing a primary Cu-Co system, as the tenure has been under explored and largely undrilled. However, initial desktop research re-discovered the historic Cangai Copper Mine (in the southern part of the project area) which became the initial focus of attention as legacy data was sufficient to determine a JORC compliant Inferred Resource.

The mine operated from 1904-17 and was re-evaluated by Western Mining (1982-84) and CRA Exploration (1990-92) but not progressed due to prevailing tough economic conditions at both times. However, with a JORC Inferred Resource of 3.2Mt @ 3.35% Cu confirmed by CCZ’s geology team, the next step is to focus on proving this up and increasing the resource size across the southern part of the project area. Notably, within 5km of the Cangai Mine is the smaller historic Smelter Creek Copper Mine and several highly mineralised satellite deposits.

A key feature with the Cangai Mine was discovering supergene ore – with up to 35% Cu and 10% Zn – which is a relatively rare geological occurrence. A key feature of supergene ore is that it potentially can be directly shipped to customers, if the grade is high enough, which implies high operating margins as costly processing costs are avoided.

Stripping out the Cangai Copper Mine windfall, the rationale for acquiring the Jackaderry Project was primarily to search for copper-cobalt systems. There are >25 historical Cu-Au-Co-Fe workings and small mines in the area, with target modes identified in adjacent ground being:

  • Tourmaline breccia hosted Cu-Au deposits;
  • Cu-Au-Fe skarns; and,
  • Quartz-sulphide vein system (such as porphyry Cu-Au deposits).

The Jackaderry Project is deemed to be prospective for metals typically associated with ultramafic rocks, such as Cu-Co-Ni and the PGEs. Previous exploration activities for these metals appears to be limited. However, further potential exists for reef-hosted Au mineralisation.

A ‘basement window’ of exposed magmatic hydrothermal alteration and historic Cu-Co workings may represent the western and upper extent of a much larger hydrothermal system concealed under Mesozoic cover to the east, prospective for:

  • Quartz-tourmaline-sulphide-cemented, magmatic-hydrothermal breccia hosted Cu-Au-Co deposit;
  • Concealed porphyry Cu-Au-Co ore body associated with quartz diorite to tonalite porphyry apophyses proximal to the tourmaline-sulphide cemented breccia; and
  • Potential exists for Cu-Au skarn.

Recent Nearby Activity

Corazon Limted (ASX: CZN) holds an adjacent area connecting the north and south parts of the Jackaderry Project. Interestingly, during Nov-Dec 2016 CZN reported drilling results to the ASX that where all assays received from RC drilling at Cobalt Ridge; this is within the Mt Gilmore Co-Cu-Au project.

These results confirmed the project’s potential as a valuable, high-grade cobalt-dominant deposit. Notably, excellent high-grade cobalt intersections were returned in targeted lode positions within broad shallow mineralisation. Assays returned for all six RC holes intersecting the main lode; included:

  • MGRC002 16m @ 0.65% cobalt from 135m, including 6m @ 1.48% cobalt and 0.14% copper;
  • MGRC003 37m @ 0.14% cobalt from surface, including 2m @ 0.36% cobalt and 1.37% copper, 1m @ 1.20% cobalt and 1.02% copper;
  • MGRC006 34m @ 0.23% cobalt from 42m, including 4m @ 0.48% cobalt and 0.27% copper, 5m @ 0.71% cobalt and 0.88% copper;
  • MGRC007 15m @ 0.33% cobalt from 41m, including 3m @ 0.82% cobalt and 0.26% copper, 1m @ 0.61% cobalt and 0.67% copper;
  • MGRC008 17m @ 0.35% cobalt from 97m, including 7m @ 0.72% cobalt and 0.02% copper; and,
  • MGRC009 28m @ 0.10% cobalt from 12m, including 1m @ 0.53% cobalt and 2.01% copper;

Interestingly, broader Co zones include Cu and Au mineralisation and high-grade mineralisation is open to the west, providing potential upside.

Local Geology

The project area is dominated by serpentinite in the Gordonbrook Serpentinite and Cottesbrook Monzogranite. Parts of the Gordonbrook Serpentinite have been metamorphosed to chrysotile (asbestos) which has been the dominant focus of historical exploration and mining activities. Basement rocks consist of Silurian/Carboniferous sedimentary and volcanic rocks. Triassic to Jurassic sedimentary of the Clarence-Moreton Basin are to the east and Quaternary sediments obscure much of the outcrop in the licence area.

Regional Geology

The underlying geology is contained within the Coffs Harbour Block, east of the Demon Fault. The major basement unit is the Silurian-Devonian Silverwood Group (locally the Willowie Creek Beds), a mixed sequence of tuffaceous mudstones, intermediate to basic igneous rocks, slates and phyllites at low stages of regional metamorphism. Overlying this rock formation is a younger tectonic melange of Early Carboniferous age – the Gundahl Complex of slates, phyllites and schist, with chert, greenstone and massive lithic greywackes. These rocks are intruded by the Early Permian Kaloe Granodiorite, which in turn is intruded by numerous later-stage mafic dykes. NSW Mines department records have confirmed copper was mined in the tenure neighbourhood in various locations from 1900 through to the 1930s.