Base metal exploration in the Nunavut region is heating up.
A recent (20th Aug 2024) exploration map released by Somerset Minerals Ltd (ASX:SMM) highlights the level of activity in the region.
The number of company's exploring includes American West Metals, Somerset Minerals, BHP (on Bathurst, Axel Heiberg & Melville island), Bronzite Exploration and 5809 Nuvavut Ltd.
In terms of SMM specific mineral exploration activity, they are targeting a large range of geophysical survey blocks surrounding AW1 interests.
SMM is basing its geological modelling on the hypothesis their exploration blocks contain a similar geological sequence as the neighbouring Storm Project.
Their Miguel Prospect airborne geophysical survey (29 km's away from Storm deposit & 10 km's from Seal deposit) is picking up large gravity high signatures and multispectral anomaly work has identified gossan outcropping (800m x 450m) & multiple fault zones similar to Tempest prospect.
SMM state, "A gossan is an iron and manganese-rich weathered material that typically forms above metallic sulphide deposits due to the oxidation and leaching of base metal sulphides. These gossan formations, in conjunction with geophysical and multispectral targets, serve to provide drill-ready targets as they often indicate sulphide mineralisation, as has been the case for the neighbouring discoveries of American West Metals Limited (ASX:AW1). Early works are currently underway for the maiden drill campaign, with further drill targets likely to be added following the completion of the ongoing Airborne Gravity Gradiometry (AGG) and Magnetic survey."
Samples from the Miguel gossan is shown below. SMM noted, "given the weathered nature of the gossanous samples, no base metal minerals were observed and no base metal minerals observations are being reported."
SMM describes the Miguel prospect as having significant geological features, including faults, gossans, gravity anomalies, and hydrothermal alteration. The area is heavily faulted, and the potential mineralisation may be fault-controlled. Two gossan locations coincide with a large fault zone, suggesting a possible connection between the mineralisation and faulting. Extensive hydrothermal alteration, including dolomitisation and quartz veining, was observed in the area, particularly around a large gravity anomaly. This alteration style is common in sedimentary-hosted copper and Mississippi-Valley-Type (MVT) deposits and suggests significant hydrothermal fluid activity. Soil sampling was conducted to support subsequent 3D inversion modeling of geophysical results.
On a more positive note, 27 km's southwest of Storm deposit is the Dexter prospect. SMM have identified a large fault with a multispectral signature, anomalous geochemistry in soil samples, confirmed by portable XRF, carbonate host rock lithologies, which could host either MVT or sedimentary hosted copper mineralisation. SMM indicate, "the airborne AGG and magnetic survey over this block is nearly complete, and all soil and rock chips samples will be sent to the lab for multi-element suite assays."
Dexter prospect geological ground survey.
Overall, its early days for Somerset Mineral Ltd (SMM) exploration identifying economic copper-lead-zinc-silver mineralisation. They are many years behind AW1 but are utilising the geological-geophysical technical learning's from Storm deposit to efficiently accelerate their own exploration program. SMM highlight, "On Somerset Island previous exploration activities have been focussed on the central corridor which encompasses the Storm and Seal deposits of American West Metals and Aston Bay Holdings, respectively, outside of this area there has been no systematic base metal exploration work completed, which includes the licences held by the Company.".
Unlike AW1 who have sufficient funding for many quarters, SMM only have adequate funding until 1st Quarter 2025. Hence, capital raise is required later this year.
However, the similarity of AW1's Tempest prospect and SMM's Miguel & Dexter prospects is worth monitoring.
Reference:
SMM ASX release, Investor Presentation, 25th July 2024 SMM ASX release, MULTIPLE GOSSANS IDENTIFIED AT PRESCOTT PROJECT, 20th August 2024.
AW1 Price at posting:
13.5¢ Sentiment: Buy Disclosure: Held
