Canobie Drill Campaign

At last the Canobie drilling campaign is about to happen and here is data from Geoscience Australia overlaid carefully with the 4 proposed drill hole locations. It illustrates some of the science that SER would have incorporated in their work. This may all be old news to the patient long term holders, but for those who are not aware and any considering, who can handle the risk, it illustrates why this 4 hole campaign represents good greenfield undercover exploration - focussed on copper and nickel - and to me rationally justifies the investment risk given the very low market cap we start from and the potential sizes of typical IOCG and Ni chonolith intrusion deposits. It is not surprising that SER have attracted FMG, that Datt Capital continue their backing, and now it seems 180 Markets (via 1215 Capital) have joined as a substantial shareholder.First, the drill hole names and locations provided by SER:




The next figure is taken from Wenping Jiang et al, 2019, and I’ve overlaid the 4 holes (as I have on subsequent figures).



In that paper they note:

• the ancient Gidyea Suture zone is a major crustal boundary approximately 10 km wide.
• the Ernest Henry IOCG deposit is located in the hanging wall of the Gidyea Suture zone and the major iron oxide is magnetite.
• the distribution of known gold and copper deposits in the Mount Isa Province appears to be related to the Gidyea Suture zone and other significant faults within the eastern part of the province, suggesting that this suture has the potential to be a fundamental control on IOCG deposits in its vicinity.
• our results support the scenario that conductive crustal structures including major crustal boundaries and deep faults represent important conduits that facilitate fluid transport from the lower crust/upper mantle into the upper crust to form major mineral systems.

You can see that all 4 holes are on the Quarnby Fault and/or the Gidya Suture Zone.

Sundance, Apollo Bore and Alcala are all targeting magnetic anomalies (where magnetite if present should show up well).

The next figure is an extract from Skirrow, Murr et al, 2019, showing IOCG mineral potential from Geoscience Australia adopting a mineral systems approach. Note that Canobie is undercover and hence GA were not able to incorporate outcrop data as they could elsewhere, and if they had it may have increased potential. The figure shows we are drilling in areas of good to very good potential for IOCG mineralisation.



Finally an extract/amalgamation figure from earlier Geoscience Australia work (Dulfer, Skirrow et al, 2016), also with a minerals systems approach, It shows the potential for intrusion-hosted Ni-Cu-PGE sulfide deposits and is part of a larger map that became well known for successfully highlighting where the Chalice Ni PGE chonolith was subsequently found. The top hole, Wondoola, is targeting Ni sulphides and the the figure shows all four holes are in an area with good potential for Ni sulphide mineralisation.



SER (and FMG) have no doubt added to this GA work, adding up to what looks like a very promising campaign.