• Extensive volcanogenetic environment prospective for gold and base metals
• Airborne geophysical survey delineates 6 targets for detailed follow-up
• Follow-up of airborne survey leads to discovery of strong Zn-Pb anomaly at the Birchams Prospect

Setting

Exploration Licence 6376 contains a host of base metal and gold prospects. The setting for these deposits is typically a volcanogenetic environment with some intrusives.

Location

Exploration Licence 6376 covers an area of 256 square kilometres and is located approximately forty kilometres south west of Queanbeyan (Figure’s 1 & 2).

Geology

The licence area occurs on a rift known as the Cowra-Yass Synclinorial Zone from Spring Valley to south of Bredbo. This comprises a Silurian felsic to intermediate volcanic – sedimentary-carbonate sequence underlain or faulted against Ordovician basement flysch in the east.

Figure 1: Regional geology for Michelago Project

This is intruded by several Carboniferous granite-granodiorite bodies. To the west the Silurian sequences abuts the Murrumbidgee Fault and Clear Range Granodiorite Batholith.
Numerous mineral occurrences and gossans are hosted by the Silurian sequence, in particular the Colinton and Cappanana Volcanics. Extensive outcrops of ironstone, some with box worked gossan occur in the Burra and Collingwood Faults at the Silurian-Ordovician contact.

There is also, clear evidence for extensive hydrothermal activity accompanied by large alteration zones with low order base metal mineralisation. With the discovery of the London Bridge high grade base metal mineralisation not far to the north of the Company’s tenement, all the ingredients for volcanogenic massive sulphide type mineralisation appear to be present.

Figure 2: Looking south along the Monaro Highway
towards Michelago. The mountain range in the background
represents the eastern boundary o the licence.

Previous Exploration

Most modern exploration has been directed at the base metal potential of the area, principally along the Silurian/Ordovician contact zone which lies along the eastern boundary of the tenement. This contact zone is often delineated by gossanous ironstones. More recently, extensive exploration for epithermal gold mineralisation has been conducted around the Billilingra prospect located at the southern end of the licence area.

Exploration Activities by Monaro Mining

The Company has completed an extensive overview of the prospectivity of the licence, including the compilation and interpretation of all available data. This work led to the licence areas being flown by an airborne survey, details of which are described below.

Airborne Geophysical Survey

A high resolution heli-magnetic and radiometric survey of the entire Michelago licence area has been carried out to help the delineation of areas prospective for sub surface massive sulphide (London Bridge-Collector style), Billilingra barite-gold and skarn deposits. Processing and interpretation of the subsequent data resulted in the identification of a number of targets. These include six distinct magnetic anomalies that could represent skarn related magnetite alteration and a zone of possible exhalite horizon (Figure 3). All magnetic targets occur at or near known prospects.

Figure 3: Results of airborne survey (RHS) and location of mineral occurrences (LHS)

Stream Sediment Data Compilation

Historic stream sediment geochemical sampling data within the tenement were compiled. This has highlighted several clusters of coincident Cu-Pb-Zn highs, some of which appear to be spatially associated with the above magnetic anomalies (Figure 4).

Figure 4: Anomalous Copper and Lead stream-sediment geochemistry

Woolshed South Prospect

This prospect is a moderate lead-zinc soil anomaly with a strike length of approximately 400 metres and delineated by a 500ppm threshold for Pb and Zn. It occurs in the northern portion of a weak zone delineated by a 200ppm threshold that extends for a further 800m to the south. Moderate to strong IP anomalies were delineated on or to the west of the zone. At or near the northern extremity, a 300 x 100 metre zone of 3 to 4 gossanous lenses associated with interbedded shale and limestone were delineated. Soil sampling delineated patchy weak copper-lead-zinc soil anomalism. Shallow drill testing intersected 15.24m @ 0.26% Zn from near surface.

Birchams Zn-Pb Prospect

Following a recent soil survey utilising the Company's portable Niton XRF analyser, a strong Zn-Pb anomaly was delineated - see Figure 5. This anomlay is located immediatley to the north of an area that was previously drilled and where Zn and Pb mineralisation had been recorded. This anomaly represents a strong drilling target.

Figure 5: Birchams anomlay - Elevated Zn values indicated by orange-red contour

Proposed Exploration Activities

A data package has been prepared and forwarded to several exploreation companies for assessment.