High-Grade Mineralisation Intersected at Premium-Butcherbird Prospect

Highlights


Background

On 17 September 2018 the Company provided an update on its recent exploration activities [here].  Activities reported included:


Premium Lode and Butcherbird Shear

As reported in the Company’s Announcement dated 7 July 2018, Horizon undertook a reinterpretation of the geological controls on high-grade gold mineralisation in the Premium Lode and Butcherbird Shear at the northern end of the Swan system. This reinterpretation highlighted the potential to significantly increase the underground Mineral Resources in this area with additional exploration drilling.

Following the geological reinterpretation, the Company estimated Exploration Targets of between 30,000oz to 100,000oz contained gold for the Premium Lode and 270,000oz to 800,000oz contained gold for the Butcherbird Shear

An initial diamond drill program of 12 holes totalling 4,897 drill metres on the Premium Lode and Butcherbird Shear Exploration Targets commenced in late June 2018 and was completed on 22 August 2018.  The aim of the program was to assess the validity of the Exploration Targets by drilling a broad spread of holes to test and support the predicted thickness and grade of the models in those areas. 

Figure 1: Long section looking west showing historical and new drill hole pierce points testing the Butcherbird Shear and Premium Lode.

Figure 2: Cross section 6983780N looking north showing historical and new drilling intercepts on the Butcherbird Shear and Premium Lode

 

Zones of quartz flooding with minor sulphide mineralisation were intersected at the anticipated target depth in most holes. True widths of the quartz flood zones intersected in the current program are estimated to be up to 5 metres.  

In addition to the intercepts interpreted to be on the Butcherbird Shear, several other unexpected quartz-sulphide structures were intersected. At this stage the Company is unable to correlate these structures with the known lodes and is therefore uncertain of their economic significance.

Gold assay results were received for holes SBDD075, 076, 077, 078 and 080. Significant assay results interpreted to reflect the Butcherbird Shear include:

In addition to these interpreted Butcherbird Shear intercepts, several other unexpected quartz-sulphide structures were intersected, including:

  Photograph of mineralisation in hole SBDD073 with individual 1 metre gold assays shown in red.

Discussion of Results

Zones of quartz flooding with minor sulphide mineralisation were intersected at the anticipated target depths in most holes. True widths of the quartz flood zones intersected in the current program are estimated to be up to 5 metres.  Together with the assays received so far, the results are interpreted to be supportive of the modelled Exploration Targets. 

For holes SBDD073, SBDD076 and SBDD080, intersected thicknesses and gold grades exceed the parameters used to estimate the Butcherbird Shear Exploration Target.

The Company notes that the gold mineralisation in the Swan system is highly variable and that correlation of high gold grades, even between closely-spaced drill holes, can be difficult.  For this reason, the Company urges caution when considering the economic significance of the results obtained to date. 

Follow Up Work Program

The Company is highly encouraged by the results of the initial program.  As is apparent from the long section in Figure 3, there are very few drill holes in the vicinity of holes SBDD076 and SBDD080.  Diamond drilling to infill this area is planned as a priority once all results of the current program have been received and a new and more comprehensive evaluation of the economic significance of the results is completed.

It is important to note that in addition to the interpreted Butcherbird Shear intercepts, several other unexpected quartz-sulphide structures were intersected. At this early stage and until all assay results have been received, the Company is unable to correlate these structures with the known lodes and is therefore uncertain of their economic significance.

The Company plans to provide a further update including a discussion of any material changes to the potential scale or quality of the Exploration Targets resulting from the initial exploration drilling program.

Figure 3: Long section looking west showing historical and new drill hole pierce points testing
the Butcherbird Shear and Premium Lode

 

 

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