Having been re-reading the announcement regarding the first two drill holes and staring at the core for a while a few things stand out to me. There are a number of lines to read between in the announcement some obvious others perhaps not as obvious to those without a technical background.
My biggest question remains what type of deposit is it? (If grade produces a deposit)
To me it doesnt look like typical porphyry Cu, Au, and Mo mineralisation. Have a look at Marengo mining core photos. To me this could be a positive. Peter has listed the geological and mineralisation history for Andewa as he sees it and to me it is very similar to the Ladolam deposit on Lihir Island. This deposit formed after a Cu, Au and Mo porphyry system in a caldera within the Bismarck Archipelago of which New Britain forms a part of. Peter has also suggested similarities with Lihir based on his own knowledge of working there.
Ladolam
"The original porphyry stage is indicated by remnant hydrothermal breccia clasts of strongly biotite-magnetite altered monzodiorite with disseminated pyrite - chalcopyrite and poorly developed pyrite - quartz stockwork veins".
"The breccias are overprinted by biotite-magnetite alteration and their matrix is strongly mineralized with disseminated auriferous pyrite. The breccias are cut by late-stage epithermal quartz-chalcedony-illite-adularia-pyrite veins and associated illite-adularia alteration that locally contains bonanza gold grades". (Mineralium Deposita (2002))
Andewa
"The intersections of various major crustal level structures allowed the localisation of mineralised porphyry intrusions and resulted in the formation of at least 10 known copper+/- gold +/- silver +/- molybdenum occurrences on New Britain Island. The related hydrothermal fluids /systems also utilised these and subsidiary structures to ascend to higher crustal levels to produce dozens of gold occurrences in various mineralised sub-districts on the island."
"At ANDEWA, pervasive silicification then occurred in the various host rocks and ultimately the intrusive lithologies associated with the igneous activity".
"Crackle brecciation (no rotation or fragment milling) occurred in the competent / silicified rock due to fluid /vapour -hydrothermal system over-pressuring (see the fracturing in the white rock fragment in figure 16)".
"Mineralising fluids then exploited the ?crackle? breccia pathways and quartz magnetite - chalcopyrite veinlet and veins were emplaced".
"Disseminated copper /pyrite mineralisation was deposited in the host rock proximal to the veinlets /veins and also well into it".
"Magnetite,pyrite, quartz veinlets/veins crosscut copper mineralised veinlets".
"Pyrite veinlets / veins appear to represent the last phase of mineralisation".
"The prolonged volcanic and intrusive activity at the massive ANDEWA volcano appears to have ceased perhaps 600,000 years ago (estimate only)".
A majority of the porphyry systems in the SW pacific are much older than the estimated 600,000 year old termination of activity with the caldera. This provides plenty of time and igneous activity to produce other styles of gold mineralisation.
Peter is saying there a number of mineralisation events that could have deposited economic mineralisation.
Over printed means what over prints cut through what was already there. It means it is younger than what it cut through.
"ADH 001 is located quasi along strike about 1km east of the Komsen gold Prospect, where previous Frontier drill results in 2008 included to 7.9m of 10.0 g/t gold in a tight and peripheral WNW trending structure".
If you have looked at enough core can see distinct fault zones in the core of ADH001 in a number of places so I think this structure has been intersected again and it is a representative extension of the gold system present at Andewa. In previous announcements Komsen has been referred to as an epithermal vein system and the high grades suggest this. Porphyry systems dont usually as an average exceed 1g/t gold or 1% copper. They are on average very large though.
Ive literally put my money on structurally controlled epithermal gold in discrete zones of that drill hole plus the large porphyry system previously defined by IP and soils. To be honest I wouldnt have guessed high grade gold in the Komsen core but it looks very similar to what is seen in some of ADH001. Epithermal gold is usually structurally controlled so a lot of drilling will be needed to define it and it may not be present over the whole hole. Some of the core looks pretty barren to me.
If the porphyry system present, which by the looks of the IP survey and what Peter has described in hole two 2.7 kms away is also economic then we could have a very nice complimentary system: Bulk low grade porphyry with higher grade lenses. Which system is present and which system or systems produce economic grade is anyones guess and will only be defined by ASSAY.
This stock is realistically overpriced and still very risky to newcomers. If grades are poor or perceived as poor, you will probably loose half your money overnight. My face will be as red as any ones though as I got in later than I would have liked.
There is nothing wrong with waiting for results to make money from the stock if you cant afford a loss.
But if you can afford a risk....
Statements like:
"The potential for gold mineralisation in the core can only be determined by certified chemical analysis, however, it is extensively silicified, brecciated, quartz veined and mineralised"
"The perseverance of the exploration team over the last 7 years has resulted in a new copper gold discovery for Frontier and Papua New Guine"
And an MD that is either so confident about the outcome he posts pictures of himself with a bird on his shoulder in a formal asx announcement or he has gone coco loco with the 10 million dollars we all just gave him.
Should know the answer to this in about two weeks.
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