Gunson Resources (ASX:GUN) has been awarded $49,390 in co-funding from the Northern Territory Government for its Tennant Creek gold-copper project in the Georgina Basin.
Drilling is expected to commence during the third quarter of 2014 and will test a coincident gravity-magnetic geophysical anomaly in basement rocks beneath about 90 metres of sedimentary cover.
The drill target is a hematite-rich variant of the well documented magnetite-rich gold-copper deposits of the Tennant Creek goldfield.
Tennant Creek was one of 10 drilling applications and three geophysics applications approved for co-funding under Round 7 of the Northern Territory Government's Geophysics and Drilling Collaboration Program.
Co-funding is provided for selected exploration drilling and geophysical acquisition projects in greenfields areas where there is a lack of geological information.
A draft contract regarding this funding will be forwarded to the Company shortly and will be considered in the context of the Company's recent capital raising activities and its overall budget position.
Tennant Creek
Tennant Creek consists of three approved Exploration Licences and one Exploration Licence application that cover 76.6 square kilometres.
Little exploration effort has been directed at hematite-rich, magnetite-deficient gold and copper ore bodies that have either a very weak coincident or adjacent magnetic anomaly such as the major hematite-rich ore bodies at Prominent Hill or Olympic Dam in South Australia.
The project has the potential for similar ore bodies that can be quickly and cheaply tested with ground geophysics and shallow drilling.
A 2 hole diamond drilling program to a depth of 250 metres each is planned for mid-2014. This will evaluate an untested geophysical anomaly that covers a 1.2 kilometre long interpreted hematitic ironstone body in the 100 -150 metre depth range.
