Transition Resources says it has ‘hit the jackpot’ near Cloncurry, identifying a multi-billion-tonne, gold-rich mineral system in its tenements.
Recent drilling confirmed the system was capable of hosting high-grade gold and new economy metals such as tungsten, cobalt, and highly sought-after heavy rare earth elements, Transition Resources founder David Wilson said.
He described the new discovery as a game-changer for the company and believed it would drive a new exploration focus in the Cloncurry district.
“Transition is the first to predict and then drill test this new gold-rich mineral system, with spectacular early results,” Mr Wilson said.
“The system is regionally extensive and also includes new economy metals including heavy rare earths that could supercharge the in-ground value of any resources.
“This discovery is an example of how, even in heavily explored brownfield areas, significant new discoveries are still possible.”
The company has completed about 40 reverse circulation drill holes at the location in the past two and a half months.
Assay results are still coming in, but early results included a hole intersecting 8m at 6.13 g/t gold and 6345ppm tungsten oxide (from 23m), including a high grade zone of 5m at 9.73 g/t gold and 10,154ppm tungsten oxide.
Mr Wilson said the system was more than 21km long and 300m-500m wide, and it was unknown how deep it extended.
The privately owned exploration company, funded by mum-and-dad investors, is seeking outside backing for continued exploration work in 2021.
“The sheer scale of this new mineral system is staggering,” Mr Wilson said.
“To do this discovery justice, it has become obvious that Transition must scale up its activities significantly, and this means finding an ambitious investor/partner who sees what we see and will share our value-adding vision.”
Transition is developing a new mineral system model for the Cloncurry area that challenges existing crustal and metallogenic models.
It offers alternative exploration methodologies and, in particular, explains the new economy metal endowment in these mineral systems, according to team member Professor Ken Collerson, an authority on rare earth elements and technology metal mineralisation.
“By re-evaluating the accepted regional geological model and providing an alternative explanation for the source of metals, new exploration methodologies can be developed and tested, leading to new discoveries.” Professor Collerson said.
“Through this process, and by recognising what others previously failed to recognise, Transition is turning overlooked exploration tenements into fertile new discovery opportunities.”
The new discovery includes gold-tellurides, which is consistent with the expectations of Transition’s new mineral system model, according to Professor Collerson.
“Gold tellurides are typical of epithermal environments and are responsible for some of the world’s highest-grade gold deposits, for example Cripple Creek in Colorado and Ladolam on Lihir Island,” he said.