Ann: Operational Update and Key Tenement Renewal, page-93

Sometimes I find it useful to take a step back to review what we know so far. In this case in terms of CHKs drill, Oak Dam and Oak Dam West


HWD003 close (but not too close) to BHP. Plenty more room left to explore

6/10/2020 - Horse Well Drilling Update

"At the end of the last shift the HWDD03 had reached 1,040m where it encountered a 2 m wide zone (fault zone?) of red earthy, hematitic ironstone with disseminated sulphide mineralisation (Figure 6)."

Did Oak Dam East encounter something similar?

14/10/2020 - Operational Update and Key Tenement Renewal

"HWDD03 had just passed the 1,095m mark (only logged to 1,045m prior to delays brought on by seasonal rain) and continues to show evidence of persistenthematite-quartz-K-feldspar breccia with some possible carbonate (siderite?) and blebby and disseminated chalcopyrite (Figures 1 and 2). The Company continues to push this hole deeper due to these encouraging signs, and will keep shareholders updated on its progress."

In order to compare with our big neighbour PorterGeo have and excellent page on Oak Dam and Oak Dam West here:

http://www.portergeo.com.au/database/mineinfo.asp?mineid=mn1400

The whole document is well worth a read in the context of CHK’s recent announcements. The section on Oak Dam East is particularly interesting however for the purposes of this post the drill analysis on Oak Dam West is probably worth highlighting the most.

“On 27 November, 2018, BHP released drilling results from Oak Dam West which included results from 4 diamond drill holes testing an area of ~400 to 500 m radius centred on the gravity anomaly described above. These drill holes intersected chalcocite, bornite and chalcopyrite mineralisation, which occur primarily as disseminations, and is associated with iron oxide rich breccias.

The mineralisation reported is overlain by between 700 and 950 m of consolidated post-mineral, sedimentary rocks of Meso- to Neoproterozoic and Lower Palaeozoic age.

The two 2018 drill holes on the southern 'slope' of the gravity high, returned the following intersections:

• AD22 - 124.5 m @ 0.52% Cu, 0.48 g/t Au. 0.085 kg/t U, 3.37 g/t Ag from a depth of 936 m; and

• AD24 - 406 m @ 0.66% Cu, 0.35 g/t Au, 0.266 kg/t U and 2.09 g/t Ag from a depth of 848 m.

The two intervals were ~220 m apart, and ~400 to 500 m south and SW of AD4 respectively, and the centre of the gravity high. The hosts rocks intersected in these holes were iron oxide and siderite altered,brecciated granites, with chalcopyrite dominant mineralisation.

Two drill holes on the northern 'slope' of the gravity high returned intersections of:

• AD23 - 425.7 m @ 3.04% Cu, 0.59 g/t Au. 0.346 kg/t U, 6.03 g/t Ag from a depth of 1063 m; and

• AD25 - 77 m @ 2.11% Cu, 0.54 g/t Au. 0.327 kg/t U, 2.94 g/t Ag from a depth of 1193 m.

These two interval are ~350 m apart and 300 to 400 m south and SW of AD4 respectively. AD23 included 180 m @ 6.07% Cu, 0.92 g/t Au, 0.401 kg/t U and 12.77 g/t Ag from a depth of 1070 m.

AD26 - drilled in 2019, crossing close to AD23, intersected 205 m @ 2.05% Cu, 3.8 g/t Au, including 44 m @ 5.77% Cu, 14g/t of gold, 1.2 g/t Ag and 643 ppm U.

Holes AD23 and AD25 passed downward from pervasively altered iron oxide rich breccias and fine grained sedimentary clastic rocks, which were generally barren of copper mineralisation, before cutting massive hematite breccias with high grade chalcocite-bornite mineralisation. Both holes end in moderate to weakly hematite altered, brecciated granites dominated by chalcopyrite mineralisation in AD23 and pyrite mineralisation in AD25.”