The Company controls up to 50 kilometres of drainage with potential to contain pisolitic iron mineralisation in the Tom Price-Paraburdoo region, and an untested drainage system at Sylvania near Newman.
AusQuest is pursuing an intensive iron ore exploration program in the Pilbara region in parallel with its other nickel, gold and diamond exploration activities.
NAMELESS Prospective for channel iron deposits
Drummond Gold Project Potential for the discovery of a sediment-hosted Carlin-style Au deposit
The Drummond project is located 300km southwest of Mackay in central Queensland Six granted exploration licences totalling approximately 670 km², with native title claimant access agreements in place Owned 100% by AusQuest, with possible claw-back to 70% interest by Rio Tinto Exploration Pty Ltd Located on a buried basement ridge in an under-explored portion of the Palaeozoic Drummond Basin, west of known gold deposit trend (Twin Hills, Yandan, Wirralie, >3Moz Pajingo-Vera Nancy) Known Drummond gold mineralisation includes epithermal and low-temperature replacement ore styles Project area has gross geological and geophysical similarities with the Carlin Trend where most gold deposits occur in anticlinal culminations spatially linked to buried magnetic intrusions and local gravity highs, adjacent to steep faults A number of anticlinal culminations have been recognized at Drummond providing priority targets for exploration Gold (1.2 g/t) was identified from drill spoil in previous hydrogeological drilling at Wild Horse Diamond drilling at Wild Horse in 2005 intersected minor gold anomalism The project is currently under review
Potential for a new Noril'sk-style Ni-Cu-PGE massive sulphide province This project is subject to a joint venture agreement with Falconbridge (Australia) which can earn a 70% interest in the project by spending a total of $10 million. Located 200km east of Newman, the project includes 2150 km² of granted title and a further 2000 km² of applications with access agreements in place. The project is situated in the under-explored Western Officer Basin where regionally extensive mafic sills, intruding an evaporitic sedimentary succession, are interpreted as possible feeder zones for the Cambrian Table Hill Flood Basalt Province. Feeder zones are prime targets for massive nickel sulphide accumulations similar to those found at Noril’sk Lithogeochemical analysis of the mafic rocks suggests Noril’sk affinities and indicates that significant Ni-Cu-PGE could be present within feeder zones at shallow (< 500m) depths A trial airborne GEOTEM survey indicated the area is amenable to airborne EM prospecting. A 7,700 line kilometre GEOTEM survey commenced in November 2005 to locate targets for drilling in 2006.
Located 5km north west of Tom Price in the Pilbara region of WA Targeting Channel Iron Deposits with low phosphorous Owned 100% by AusQuest, subject to a Letter of Intent with Rio Tinto Surface mapping has identified channel iron mineralisation with iron grades between 55 and 58% Fe over a 15 km strike length The channel varies in width from 200 metres in the east and up to 500 metres over the majority of its strike length. In places detrital iron mineralisation occurs along the margins of the channel. Wood fragments identified within the pisolitic iron outcrops are diagnostic of channel or valley fill material and confirm correlations being made with the Robe Pisolite A Heritage agreement has been signed with the Native Title claimants to facilitate grant of the tenement, which is expected in early 2006 Drilling is planned for 2006
ROCKLEA Prospective for channel iron deposits
Located 40km west of Tom Price in the Pilbara region of WA Targeting Channel Iron Deposits with low phosphorousThe Six Owned 75% by AusQuest, subject to Fortescue Resources agreement RC drilling in 2005 (18 holes/900m) intersected substantial thicknesses of pisolitic iron mineralisation within a 300m wide channel up to 68m deep Better grades (58% Fe) are comparable to pisolitic Channel Iron Deposit’s currently mined elsewhere in the Pilbara EM and gravity surveys were comleted to help define the channel extensions Scout drilling is proposed for 2006 to provide an indication of the resource potential of the project
Beasley Nickel-Copper-PGE Project Prospective for komatiite-hosted Ni-Cu-Platinum Group Elements (PGE) massive sulphides
Three exploration licences covering an area of 150 km² Owned 100% by AusQuest The project targets a komatiite flow in the Archaean Fortescue Group in the Pilbara of WA. Anomalous Ni-Cu values in stream sediment (up to 700ppm Ni, and 100ppm Cu) and rock chip (0.28% Ni, 597ppm Cu) samples are associated with the komatiite flow. Gossans discovered by AusQuest along the basal contact of the komatiite assayed up to 1.8%Ni, 0.6%Cu, 3.4g/t Pt, 1.0g/t Pd, which indicates the likely presence of massive nickel sulphide mineralisation Mapping has revealed the gossans occur within second order channels at the base of the komatiite Ground Electromagnetic (EM) surveys, drilling and down hole EM have been completed. Diamond drilling (11 holes for 1690m) in 2005 intersected patchy disseminated nickel sulphides in the westernmost drill hole inferring proximity to more substantial mineralisation Down hole EM indicates possible off hole anomalies in two drill holes including the westernmost hole drilled The company is encouraged by these early results and is seeking a joint venture partner to fund further exploration in the area
Plenty River Diamond Project Prospective for the discovery of a new, potentially diamondiferous kimberlite province
Located 230km east of Alice Springs, the project occurs within Aboriginal Freehold Land and covers an area of approximately 8000 km² Owned 100% by AusQuest, subject to Rio Tinto Exploration Pty Ltd agreement over the central portion of the area (~1500 km²) Key tenements were granted on the 31st October 2005. Analogies with the regional structural setting of the Ellendale diamond field are inferred as both areas are located along the interpreted southern margin of diamondiferous North Australian Craton Minimal historic diamond exploration due to blanket sand dune cover High-resolution aeromagnetic data has revealed numerous anomalies representing possible pipes in a new kimberlite/lamproite field Initial Field work completed in November 2005 included ground magnetic surveying and loam sampling over 16 targets highlighted from the magnetics. Target drilling is anticipated before mid 2006
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