Quarterly Activities Report

King Solomon Mines Limited
QUARTERLY REPORT FOR THE PERIOD ENDED 31 DECEMBER 2009
HIGHLIGHTS
•
•
Discovery of Cu ± Mo mineralised intrusive porphyry at Bu Dun Hua.
Identification of new Au zone at Marmot Ridge.
BU DUN HUA PORPHYRY COPPER PROJECT (King Solomon 100%)
Full results from five diamond holes (BDH007 to BDH011) drilled in the Whitehorse
area have now been received. Three of the holes have intersected strongly altered, Cu ±
Mo mineralised intrusive rocks under tens of metres of colluvium and drifting sand cover.
Anomalous Cu ± Mo values are widespread through the intrusive intercepts and
intermittently anomalous Au values have also been noted.
The drill campaign was searching for such intrusive rocks following strong indications of
their likely presence in the 2008 Lao Ping Tong drill core. Initial interpretation places the
five holes at the northern perimeter of a shallowly buried intrusive complex centred
further to the south (Fig 1). This interpretation is supported by magnetic survey results.
The discovery confirms the porphyry Cu-Mo nature of the hydrothermal alteration and
mineralisation occurring over an area of at least 4.2 sq km at Bu Dun Hua. It establishes
the presence of appropriate intrusive bodies and metal-bearing fluids and provides both
encouragement and firm guidance for ongoing drilling. Key observations from core
logging, ongoing surface mapping and drill core petrographic studies completed to date
are:
•
Cu ± Mo mineralisation is associated with a complex of tonalite to granite
porphyry intrusions into an intermediate to acid volcanic fragmental pile;
•
There have been several intrusive episodes with associated alteration phases;
•
There has been post-mineralisation faulting;
•
Pb + Zn mineralisation is associated with a more peripheral alteration assemblage
and weakens in favour of Cu ± Mo ± Au inwards toward the intrusive complex;
•
There are textures in core from the intrusive intercepts that imply the underlying
presence of further (subsequent) intrusives;
•
Either the Whitehorse alteration/mineralisation centre is large or there is more
than one such centre within the tenement.
MARMOT COPPER - GOLD PROJECT (King Solomon 100%)
The presence of Au mineralisation in two of three holes drilled at Marmot Ridge in 2009
sparked a review of Au intercepts encountered from all holes drilled to date. This has
resulted in the recognition of a clear and potentially substantial Au zone centred on a
porphyritic intrusion within the 4.5 sq km Cu – Mo anomaly being investigated by KSO.
The new Au zone has been intersected by four drill-holes around the margins of a 750m x
350m northwest-southeast trending quartz-eye granite porphyry intrusion (Fig 2). The
four holes have yielded 25 intercepts of better than 0.1 g/t Au (45% of 55 such intercepts
encountered at Marmot). The assay intercepts are all 2m or greater and occur within
zones of low level Au and Cu anomalism tens or scores of metres in extent. They occur
in both andesitic volcanic and quartz diorite intrusive wall-rocks to the intrusion. There
are no intercepts into the granite itself. A selection of the better assay intercepts is tabled
below.
Hole No
MR022
MR031
MR036
MR038
Table 1
Easting
720500
Northing
4840254
From (m)
To (m)
69.0
71.0
81.0
83.0
87.0
91.0
720300
4840800
10.0
12.0
98.0
102.0
104.0
110.0
112.0
114.0
720321
4840652
36.0
38.0
720286
4840900
48.0
52.0
196.0
200.0
258.0
260.0
Selection of Au intercepts, Marmot Ridge Au zone
These intercepts define a target zone for follow-up drilling.
Fig 2 Metal zoning, Marmot Ridge
Interval (m)
2.0
2.0
4.0
2.0
4.0
6.0
2.0
2.0
4.0
4.0
2.0
Au (g/t)
0.37
0.38
0.39
0.44
0.34
0.53
0.44
0.37
0.19
8.97
1.30
The granite porphyry represents a late phase of intrusive activity at Marmot Ridge and
clearly overprints the porphyry Mo mineralisation drill-tested by KSO through 2008. It is
not yet certain whether this intrusive is the source of the widespread Cu anomalism
centred over the ridge.
Gold values encountered in late 2009 in MR040 occur in silicified and brecciated rocks
marginal to a similar granite outcropping approximately 1.2km west of the zone
described above. Gold values encountered in MR041 may indicate the nearby presence
of a similar intrusive. Rocks encountered near the bottom of MR041 (testing a large
magnetic anomaly) yielded hydrothermal magnetite indicative of an underlying granitoid
intrusion.
OTHER PROJECTS
Analysis of data collected through the previous quarter has defined areas for further
detailed mapping and sampling at Beyinhar North, Naogaoshandu and Sonid North.
GENERAL
An aggressive start to the 2010 field season is planned once the spring thaw arrives. Plans
include a 3,000m RC program at Bu Dun Hua with provision for follow up diamond
holes based on the RC results. 1,500m in diamond drilling is planned at Marmot Ridge,
targeting the newly identified gold zone. A RAB program will also be undertaken at
Beyinhar North testing IP anomalies for evidence of along-strike extensions from the
Beyinhar project of El Dorado (ex Sino Gold).
At the end of the December Quarter, the Company had cash on hand of $2.535 Million.
Stephen McPhail
Managing Director
Enquiries may be directed to Stephen McPhail at phone 1800 061 569 (from Australia),
+6421 897 667 (from elsewhere) or email [email protected] .
The information on mineralisation contained in this announcement accurately reflects information
compiled by A B Bell, BSc, F AusIMM(CP), Executive Director, a Competent Person (as defined
by the Australasian Code for Reporting of Identified Mineral Resources and Ore Reserves), who
has relevant experience in relation to such mineralisation and has consented to the inclusion of
such information in this announcement.
www.kingsolomonmines.com.au
King Solomon Mines Limited
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