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Duketon Nickel Joint Venture
(IGO MANAGER EARNING 70% NICKEL RIGHTS)
The Duketon Nickel JV with South Boulder Mines Ltd covers ultramafic-rich stratigraphy prospective for massive and disseminated nickel sulphide mineralisation in the Duketon Greenstone Belt, approximately 80km north of the
Windarra nickel deposit (Figure 13).
IGO is focusing on the Bulge ultramafic, a prominent thickened portion of ultramafic with a strike length of 8km situated along a more extensive ultramafic package located on the western flank of the project tenure (Figure 14).
Two prospects have been defined to date;
- the high-grade Rosie Prospect which has previously returned intercepts up to 3.3m (true width) @ 9.1% Ni, 1.1% Cu, 0.2% Co and 7.1 g/t PGEs (2.2 g/t Pt, 1.7 g/t Pd, 0.8 g/t Rh, 1.8 g/t Ru), and
- the C2 Prospect which is dominated by disseminated mineralisation and includes past intercepts up to 52m @ 0.92% Ni including 37m @ 1.05% Ni.
Both of these prospects remain open along strike and down dip.
The potential for further mineralisation at Rosie is supported by DHTEM survey results from the deepest holes TBDD093 and TBDD098 which indicate that the strongest mineralisation is situated between these holes and continues steeply down plunge to the north-west (Figures 15 and 16).
On the basis of these encouraging results the Joint Venture partners applied for a Mining Lease (M38/1252) that covers the area from C2 through to Rosie plus sufficient surrounding area to cover potential infrastructure should an economic deposit be defined.
IGO is currently planning a scoping study incorporating both C2 and Rosie.
Activities during the quarter included:
- Planning a drilling program designed to take Rosie and C2 to Inferred Resource status
- POW approvals for resource drilling program
- POW approval for Exploration base camp
- Commencement of baseline Environmental Studies
- Engagement of Aboriginal Heritage consultants
- Preliminary mineralogical studies to aid future metallurgical test work.
It is expected that drilling will commence once all necessary approvals have been received.
Other Prospects
The German Well prospect covers an ultramafic unit located on the eastern flank of the project area towards the northern end of E38/1825. Previous work by IGO has identified a TEM anomaly in close proximity to highly anomalous geochemistry in aircore drilling (max 0.43% Ni, 306ppm Cu, 55ppb Pt+Pd). It is intended to RC drill test the conductor as soon as the necessary approvals are in place.
Figure 13: Duketon JV – Location Plan Over Magnetics Showing Locations of the Bulge Ultramafic Complex and Rosie and C2 Nickel Sulphide Prospects
Figure 14: Duketon JV – Rosie and C2 Nickel Sulphide Prospects Drill Hole Locations and Significant Intercepts Over Aeromagnetic Image
Figure 15: Duketon JV – Rosie Prospect Longitudinal Projection Showing Significant Drill Intercepts and Down-Hole TEM Conductors
Figure 16: Duketon JV – Rosie Prospect Plan Approximately 500m Beneath the Surface Showing Significant Intercepts Down Hole TEM Conductors and Interpreted Nickel Sulphide Mineralisation Location
Musgrave JV
(IGO 51% / GOLDSEARCH 49%)
The Musgrave Joint Venture comprises tenements and applications coveringapproximately 18,000km2 of the South Australian portion of the Musgrave block. Most of the project area is held under Aboriginal Freehold tenure and as a
result has only been subject to cursory exploration in the past.
The principal target is Ni-Cu-PGE mineralisation associated with the feeder conduits and dykes forming part of the extensive mafic-ultramafic Giles Complex. Further to the west, Giles Complex intrusives host BHP Billiton’s
Nebo and Babel nickel sulphide discoveries. Other target types include Broken Hill type Zn-Ag-Pb, mineralisation, Iron Oxide Copper Gold mineralisation (Olympic Dam and Ernest Henry) and Mt Isa style epigenetic copper
mineralisation.
The Joint Venture partners reached an agreement with Mithril Resources Ltd (MTH) to vend the parties’ respective exploration interests in the Musgrave into a new company, Musgrave Minerals, dedicated to exploring the combined exploration package. MTH’s interests include 5 granted tenements and 25 exploration licence applications totalling some 32,000km2 which when combined with IGO/GSE tenure will result in Musgrave Minerals controlling some 50,000km2 of tenure in this poorly explored and highly prospective region (Figure 19).
Figure 19: Proposed Musgrave Minerals Float - Musgraves Exploration Tenure Over Aeromagnetic Image
Under the terms of the Heads of Agreement, each company will transfer their respective exploration interests in the Musgrave region and provide initial seed capital to Musgrave Minerals.
IGO and GSE will be entitled to 30.6% and 29.4% respectively of the issued capital in the new entity. MTH which has the largest exploration interest in the Musgrave Province through a number of joint ventures and wholly owned
tenements, will be entitled to 40%.
Each company will be represented on the Musgrave Minerals Board of Directors. The transfer of exploration interests is subject to the consent of respective joint venture parties, the Government of South Australia and the
Anangu Pitjantjatjara Yankunytjatjara.
Musgrave Minerals will conduct an initial public offering of shares and will seek admission to the official list of the Australian Securities Exchange (ASX) and quotation of its shares prior to 30 April 2011.
In the period leading up to the IPO, the focus of Musgrave Minerals will be to advance current base metal and precious metal targets on granted tenure to a drill ready or near drill ready status.
This initiative is being undertaken by the parties to ensure that the unique prospectivity of this largely unexplored highly prospective region will have the focus and resourcing necessary to lead to potential new mineral discoveries in the most efficient and effective manner to the benefit of all shareholders.
Bungalbin JV
(IGO earning 70% Non-Iron Ore Rights)
IGO has entered into a JV with Cauldron Energy Limited whereby IGO may earn a 70% interest in the non-iron ore rights by expenditure of $2m within 5 years. IGO must complete a minimum of 100 line km of TEM before it may
withdraw from the JV. Cauldron Energy has transferred its interest in the project to Fe Limited (formerly Buka Gold Limited).
The Bungalbin Project is located over the Marda-Diemals greenstone belt approx 108kms NE of Southern Cross IGO considers the Bungalbin Project to have potential for the discovery of massive nickel sulphide
deposits, as the project stratigraphy has similarities to the Lake Johnson Greenstone Belt to the south, which is host to the Maggie Hays and Emily Anne deposits. The project contains approximately 20km of strike of favourable cumulate ultramafic unit untested by modern exploration methods and only partly tested for nickel sulphides in the 1970’s.
Jaguar Nickel Sulphide JV
(IGO Earning 70% Nickel Rights)
IGO has entered into a JV with Jabiru Metals Limited whereby IGO may earn a 70% interest in the nickel rights by expenditure of $3m within 6 years including a minimum of $220,000 within the first 12 months.
The JV area covers 188km2 of tenure 50km from Leonora located over part of the southern portion of the Agnew-Wiluna Greenstone Belt, one of the most highly endowed komatiitic nickel-sulphide belts in the world. The project is well situated with regard to infrastructure and access being near to a gas pipeline and having bitumen access.
Past exploration in the area has recently been focussed on VMS deposits, with relatively limited nickel sulphide exploration.
The project area includes 3 main ultramafic units considered prospective for massive nickel-copper sulphide deposits similar in style to Cosmos and the nearby Sinclair deposit.
Initial exploration, comprising a surface geochemical sampling and Moving loop EM surveys will commence in Q3 2010.
Mt Isdell
(IGO 100%)
The Mt Isdell Project covers an area of over 400 square kilometres and is located 35km south of the 26M ounce Telfer gold resource and 80km southeast of the Nifty Copper Mine. The project straddles the same major NW trending structure that is adjacent to both the Nifty and Maroochydore deposits.
Previous reconnaissance and infill lag sampling by IGO has delineated a 5km x 5km area of high order zinc, lead, copper, cobalt and gold anomalism. Preliminary AC testing confirmed geochemical anomalism, however a more robust test using heavier drilling equipment is required to fully test the targets at depth.
A review of TEMPEST airborne electromagnetic data flown by the Geological Survey in 2009 has highlighted a number of interesting conductive responses within the project tenure. One response is associated with the fold closure of a south-east plunging synform, similar in characteristic to Nifty. A second more discrete response is coincident with surface Cu lag geochemical anomalism. It is planned to test both targets for Nifty-style copper mineralisation via a detailed Heliborne EM survey commencing Q3 2010.
Orrbäcken JV
(IGO Earning up to 73%)
The Orrbäcken Ni-Cu-Co Joint Venture with Mawson Resources is located 10km from the regional centre of Skellefteå in north eastern Sweden.
Orrbäcken is a nickel occurrence discovered by local prospectors who identified approximately 80 gabbroic boulders that form a 1.5km long glacial boulder train, 25 of which are mineralised and interpreted to be close to source. Four boulder samples were taken by the Swedish Geological Survey from the Orrbäcken discovery. Nickel content ranged from 1.9% to 0.6% and averaged 1.0%, cobalt ranged from 0.21% to 0.05% and averaged 0.1% and copper ranged from 0.7% to 0.1% and averaged 0.3%. The boulder train is associated with a magnetic feature that is of a similar scale to other mafic intrusives that have eventually been found to host economic deposits.
IGO intends to initially test the project area using airborne EM and magnetics. The survey was planned to be flown in Q1 2010 but due to contractor issues is now scheduled to commence in the September quarter with on-ground reconnaissance field work to follow. Should results be sufficiently encouraging, ground electromagnetic surveys will be used to define drill targets with follow-up diamond drilling during the northern winter of 2010/11.
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