Gulf has recently announced that it has entered into an option agreement with QIM to acquire an iron ore project near Bundaberg Qld . The details of the announcement were quite general and as time passes we hope to recive further imformation on this new project . There is suggestion that the ore type is likely to be magnetic though there might be some small amounts of haematic . the structure hosting the iron ore is believed to be 6 - 8km long and up to 2km wide , geologists believe the the lower end of of the estimate is 100mt and the upper limit around 250mt . the property was initially targetted for industrial minerals with showings of vanadium and ilmenite , it has been drilled but not for iron . the option covers a 100% interest subject to a royalty . What we dont know includes the terms of the acquistion if the option is excercised . the grade is also unknown . a figure of 55% was mentioned but this would be unusually high if it was magnetic and doesnt make sense , maybe this refers to haematite zones which would be more attractive . The location of the project near the port of Bundaberg could provide some significant infrastructure advantages . an initial due dilligence is presently being performed by the company with the results due in a week or two and I will be watching with interest .
Ebagolla drilling programme :
Gulf commenced drilling a few weeks ago and has thus far completed about 350m of a 3000m program . the target is epithermal gold and specifically some ip targets that extend up to 50m either side of known epithermal systems , small resources have been found in the past but this is a test for something much more substantial .
Wollorgorang Copper :
Gulf has recently finished a tem survey which has identified three excellent targets under the volcanic rocks where one might expect to find copper . a drill rig is scheduled for this week and will test the double j target with a hole that could go as deep as 500m .
12 Mile Uranium :
Assesment of previously identified radiometric anomalies has been taking place with on ground sampling showing that the source of the radioactive anomalies is actually uranium . approx 20 anomalies have been mapped and assayed and should be drill tested early in the new year .
Gulf has a key ground position on the NT side of the QLD border that is considered highly prospective for uranium diamonds and base metals within the highly mineralised Proterozoic McArthur MtIsa belt . it is investigating four types of mineralisation in the Wollogorang project .
1 : stratabound base metal mineralisation - a no of copper/lead /zinc stream sediment and rock chip anomalies have been identified over a 75km distance offering potential for large scale copper deposits similar to those of the central African copper belt and zinc deposits such as McArthur river .
2 ; Breccia hosted base metal mineralisation - a large 4km diameter magnetic low feature may represent a breccia pipe . The leases surround the Redbank copper field which contains 21 copper bearing pipes
3 : Uranium mineralisation - Gulf has identified a number of targets with the largest at twelve mile creek offering potential along a major lineal fault
4 : Diamond mineralisation : CRA explored the area in the mid 90s finding four macro and 38 micro diamonds . Gulf feels that the testing programme was not sufficiently comprehensive
Uranium Exploration :
Of immediate interest is the jv ground being drilled by Laramide as the sole funder entitled to earn 90% . it is understood that Laramide is drilling 12 - 15 holes to a depth of 150m seeking the contact of the volcanics and the basin structure , located near but not on the Gulf leases are deposits such as Long Pocket ( 2000tU308 at 450pm and Namalangi ( 4745tU308 at 1700ppm )
Ebagolla Gold potential :
Gulf intends to drill 6500m of percussion drilling and 1000m of diamond drilling to test and further delieate these targets .
Management are focused and are working towards taking Gulf to the next level . we see uranium as the most interesting target but there is also good potential for copper zinc and diamonds
GLM Price at posting:
0.0¢ Sentiment: Buy Disclosure: Held
