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| MULGA
TANK PROJECT |
GCR through its wholly owned King Eagle Resources owns 100% of two tenements Mulga Tank E39-988 and Mulga
East E39-1072 called the Mulga Tank Project. The tenements are located 200km north east of
Kalgoorlie and approximately 150km southwest of the Tropicana deposit of Independence Gold and Anglo Ashanti Gold.
 The
project area is located in the eastern Yilgarn region of Western
Australia.
The Yilgarn is a large segment of stable Archean crust that is well
endowed in commodities such as nickel, gold, copper, lead, zinc, and
iron. The northern and eastern Yilgarn has a solid production
history of sulphide nickel from the camps of Mt Keith, Cosmos, Leinster
and Windarra. Gold production has also been significant from a number
of deposits including Sunrise Dam/Cleo, Wallaby, Granny Smith,
Lancefield, Carosue Dam, and Mt Morgans. And greenstone-hosted
gold deposits can be found throughout the Yilgarn including Kalgoorlie
to the west.
The project area covers a buried, generally northwest striking Archean
greenstone sequence that includes mafic volcanics, ultramafic flows,
clastic metasediments, black shale and banded iron. Granite bounds the
greenstone sequence to the east and west, and has also intruded central
parts of the belt. The greenstone belt is almost completely covered
with 60 to 100 metres of sediments; predominantly aeolian sand.
Consequently, interpretation of bedrock has largely been from
interpretation of aeromagnetic data and limited drill
information.
As
discussed in more detail below the Mulga Tank tenement contains a large
dunite body which is highly prospective for nickel mineralisation.
Three wide-spaced drill holes into the intrusion have intersected
broad zones of low level nickel mineralisation. Much more work is
needed to fully test this large ultramafic body.
Recent soil
sampling in the Mulga East tenement has resulted in a number of
geochemical anomalies using a relatively new laboratory technique.
The data have yet to be processed and interpreted but preliminary
results suggest the technique has been very successful in detecting
geochemiocal anomalies and potential targets for gold and base metals.
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| Prospect
Details |
Mulga Tank
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 The Mulga Tank tenement, E39-988, is dominated by a large body of
dunite that has a distinct positive magnetic response. Although an
obvious nickel sulphide target, the dunite has had little attention in
the past due to the lack of outcrop. Covering an area of some 4.7 x 3.2
km, and when compared to other nickel bearing ultramafic bodies in
Western Australia such as Mt Keith that is 1.8 x 0.5 km, it represents
a large prospective nickel sulphide target. To date only three core holes
have been drilled into the dunite and all three have intersected similar zones of nickel
mineralisation with the best 270m @ 0.2% Ni.
The
geology intersected in the three holes is reasonably consistent and
consists of an initial 60 to 70 metres of sand over highly weathered
serpentinised ultramafic. Where fresh the ultramafic can be
identified as dunite with variable thicknesses of adcumulate textured
ultramafic within the sequence.
MTD001 drilled
through the dunite into metasediments which suggests the dunite maybe
more sill-like rather than a more typical vertically oriented
intrusive body. Mt Keith style nickel mineralisation is an
obvious target although the relationships with the host rocks are
currently unknown.
Exploration to date has not fully tested the extents of the dunite. For example the elongate magnetic
structure in the north-western corner of the dunite, does it represent a lava
flow? If true it would have some potential for Kambalda-style nickel
mineralisation. More work is planned to fully test the extents of this dunite body.
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Mulga East
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The Mulga East tenement, E39-1072, has the potential for Archaean
gold mineralisation in the poorly exposed greenstones throughout
the tenement. In late 2008 an Ionic Leach sampling program was
undertaken over the whole tenement with samples taken on a 400m x 400m
grid. The Ionic Leach process involves taking samples a
consistent depth no more than 20cm below surface. The
samples are then processed through the laboratory with specific
reagents and procedures before being analysed for 58 different
elements. This analytical technique is particularly useful in
areas of where the bedrock is under cover and detects elements down to
very low levels.
The
initial program was extremely successful with results showing well
structured distributions of the key elements. As an example the
two plans below show the unprocessed Ionic Leach results for gold
and nickel. The diagrams show that gold and nickel follow a very
similar
distribution with the largest anomaly covering an area roughly 5km by
5km. Although not shown, copper, cobalt and silver also
have a similar distribution. Interestingly chromium, arsenic, lead
and palladium follow an almost directly opposite distribution than the
elements above, the significance of which has yet to be explained.
Further work will be undertaken to understand these anomalies and
continue exploration.
 
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January 2009
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