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7 July 2016
Market Announcements Platform ASX Limited
Exchange Centre, 20 Bridge Street
Sydney NSW 2000
DRILLING TO COMMENCE AT PLUMRIDGE GOLD PROJECT
ASX Code: SEG
Segue Resources Limited (Segue or the Company) has a 100% interest in three exploration licences immediately to the west of the Plumridge Nickel JV. Exploration by previous tenement owners has identified a significantly mineralised shear zone, the Harris Lake Shear Zone (HLSZ), which is visible on magnetic imagery and which runs north-south through tenements E39/1117 & E39/1118.
Historical exploration predominantly focused on a 12km semi-continuous zone of gold endowment at the northern end of the HLSZ, which contains the Corvette, Stingray, Mustang and Camaro gold prospects. Drilling at Corvette and Stingray intersected significant gold mineralisation in narrow, high- grade veins, including 4m @ 32g/t, 13m @ 6.7g/t and 4.5m @ 10.2g/t (Figure 1).
Figure 1: Plumridge Gold Project showing Harris Lake Shear Zone, gold prosects and 8ppb gold contour
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The southern extent of the HLSZ has undergone minimal exploration as the structure is overlain by the post-mineral Paterson Formation (up to 30m thick), rendering previous shallow auger sampling of little exploration value. Of the approximately 165,000m of drilling (19,200 holes) at the Plumridge Gold Project, less than 5% of drilling has been conducted on the southern extent of the HLSZ (Figure 2).
Figure 2: Plumridge Gold Project with historic drill collar locations
Segue has reprocessed historic magnetic data and incorporated the recently acquired gravity survey data to gain a better understanding of the southern extent of the HLSZ under the Paterson Formation. The southern extent of the HLSZ contains a zone of unique complexity where the HLSZ is crossed by a regional structural corridor and may represent an antiformal fold that forms a trap for mineralisation. The intersection of this structure with the HLSZ creates a 'jog', representing a high priority regional target for mineralisation.
A 3,800m aircore drilling programme will commence in mid-July 2016 consisting of 58 holes across five traverses (Figure 3), with results expected mid-August. The northern traverses will test the intersection of the HLSZ and a zone of unique magnetic and geological complexity.
The central traverses will cover a magnetic anomaly at the intersection of the HLSZ and the interpreted structural corridor. This magnetic anomaly is interpreted to represent an intrusion into the HLSZ, and may form a brittle host for gold mineralisation.
The southern traverse will test the southern extent of the HLSZ within the tenement.
Figure 3: Plumridge Gold detailed drilling plan
Commenting on the drill programme, Segue's Managing Director, Mr Steven Michael, said:
Historical exploration at the Plumridge Gold Project has demonstrated the potential of the Harris Lake Shear Zone to contain high-grade gold mineralisation. The challenge for previous explorers has been to identify areas of structural complexity which may provide a trap site for accumulation and concentration of gold-bearing fluids.
The planned aircore drilling programme will test an area of significant disruption in both the magnetic and gravity profiles, within a broad regional structure cross-cutting the HLSZ. In addition, the aircore holes have been designed to penetrate the overlying Paterson Formation, which may have reduced the effectiveness of previous auger drilling in the southern tenement.
About Plumridge Gold
Gold mineralisation was discovered at the Plumridge project by Mineral Sands Limited in August 2007 through regional auger calcrete sampling. The "Northern Anomaly" covered an area of approximately 10km x 3km and subsequent aircore and RC drilling identified several anomalies, including Corvette, Mustang, Camaro and Stingray.
From 2007 to 2011, a total of 52,000m of auger, 80,000m of aircore, 33,000m of RC and 1,200m of Diamond core drilling was completed at the Plumridge Gold Project. Gold intercepts >1g/t (115 holes) and >5g/t (15 holes) are shown in Figure 4, with a list of significant intercepts in Tables 1 and 2.
Segue acquired the Plumridge Gold Project in late 2013 as part of the its broader Fraser Range tenement package acquisition.
Figure 4: Historical significant gold intercepts