Centrex Metals (ASX:CXM) plans to drill four diamond holes at...

Centrex Metals (ASX:CXM) plans to drill four diamond holes at the start of 2015 to test extensions of the historical Collector Skarn Deposit at its Goulburn Zinc Project in New South Wales.

Collector is located 10 kilometres north of the Woodlawn Polymetallic Mine and about 40 minutes’ drive northeast of Canberra.

Historical drilling had returned wide intercepts of base metals with up to 9.9% zinc and 0.7% copper.

The company will also fund drilling and terminate its joint venture with Shandong 5th Geo-Mineral Prospecting Institute if Chinese Government approvals cannot be secured by 15 December 2014.

This decision to proceed alone if needed is based on a forecast zinc demand-supply imbalance in the near-future.

Additional rotary air blast drilling is planned to cover three regional high priority geophysical targets.


Collector Skarn Deposit

The Collector Skarn Deposit was discovered in the early 1990s with drilling intersecting an iron-rich exoskarn hosted within a limestone unit and overprinting broader volcanagenic mineralisation.

Base metals and some precious metals within the Collector Skarn are associated with magnetite and pyrrhotite mineralisation.

Given this the deposit presents as a magnetic high interpreted to be cross cut by a number of NNE faults shown on both aerial and ground surveys.

The deposit has been interpreted to represent the distal zone of the skarn with proximal and possibly higher grade and non-magnetic mineralisation yet to be intersected.

Centrex intends to complete a three line dipole-dipole induced polarisation survey over both the Collector Deposit and the northern magnetic extension in late 2014.

This survey will provide cross sectional chargeability profiles to provide orientations of mineralisation and modelled mineralisation strengths relative to the known intersections.

This information will then be used to finalise positioning for an initial four hole diamond drilling program to commence at the start of 2015.

Two of the diamond drill holes will be completed at the Collector Deposit.

The two holes will test the up-dip and downdip extensions from the historically intercepted mineralisation (DDH C2 & DDH C3). The remaining two drill holes will test the northern magnetic extension at shallow to moderate (100-200 metres) depths.