ASX Announcement / Media Release
5 October 2016
ASX Code: ORN Issued Capital:
Ordinary Shares: 484M Options: 85M
Directors: Denis Waddell
Chairman
Errol Smart
Managing Director, CEO
Bill Oliver
Technical Director
Alexander Haller
Non-Executive Director
Management: Martin Bouwmeester
Company Secretary &
Business Development Manager
Suite 2
64 Thomas Street West Perth WA 6005 ABN 76 098 939 274
T: +61 8 9485 2685
E: [email protected]
Significant new targets identified by IP surveys at Marydale Gold Project, South Africa
Systematic 3D IP surveys underway to refine targets for drilling
Highlights:
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Well defined anomalies delineated from high-powered IP surveying at the Marydale Gold Project in South Africa. The anomalies are interpreted to be related to disseminated sulphide mineralisation.
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Recent drilling (including assays of 64m at 1.55g/t Au and 0.26% Cu) has confirmed a link between chargeable features caused by concentrations of disseminated sulphides and gold mineralisation.
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Significantly, two types of anomalism have been detected:
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Near-surface high chargeability anomalies with associated low resistivity; and
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Deeper, moderate chargeability anomalies with associated high resistivity.
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5km2 area now being covered with systematic 3D IP surveying to map out targets already identified and plan follow-up drilling.
Orion Gold NL (ASX: ORN) is pleased to report further positive results from ongoing exploration programs at the Marydale Gold Project, part of its portfolio of projects within the Areachap Belt in the Northern Cape Province of South Africa (Figure 5).
The Marydale Gold Project is being acquired as part of Orion's option to acquire Agama Exploration & Mining (Pty) Ltd (Agama), the owner of 73.3% of the PC Project covering the historical Prieska Copper Project.
Orion recently completed a highly successful maiden drilling program at Marydale which returned thick intercepts in OWCD032 (64m at 1.55g/t Au and 0.26% Cu including several higher grade zones) and OWCD033 (25m at 1.81g/t Au and 0.31% Cu including several higher grade zones).
In light of the success of this program, the Company has been undertaking trial high-powered induced polarisation (IP) surveys across the broader project area, where previous exploration defined numerous geochemical and geophysical anomalies (Figure 1).
The IP survey has successfully delineated several strong, shallow chargeability features (Figures 1 and 4) which are interpreted to be related to the gold- copper mineralisation intersected in recent drilling (Figure 2).
In addition, the IP survey has delineated highly prospective, deeper anomalies in both the chargeability and resistivity data which have not previously been identified in surveying or tested by drilling.
W: www.oriongold.com.au
Shallow IP Anomalies
Figure 1:
Depth slices of IP response (chargeability) over TMI image of new ground magnetic data
Top: 60m below surface Bottom: 300m below surface.
Note features detected 300m below surface away from NW Quadrant.
Deep IP Anomalies
Similar to the results of the high-powered electromagnetic survey at Orion's Kantienpan project (refer ASX release 4 October 2016), detection of the previously unknown, deeper features at the Marydale Project using modern high-powered geophysical techniques, again highlights the potential for discovery of new targets, as well as blind extensions and repetitions of mineralisation in the extensive volcanic massive sulphides (VMS) belt now consolidated by Orion in the Areachap region.
Historical exploration at the Marydale Project comprised a variety of geochemical and geophysical surveys completed in the 1970's, culminating in drill testing of several anomalies derived by this work.
However, follow-up drilling of the most advanced prospect (the NW Quadrant) was carried out at a range of orientations which prevented the establishment of a clear geological model for the prospect area, or for the project as a whole.
Orion's recent drilling has focused on obtaining oriented drill core through the higher grade zones intersected in historical drilling. Intersections returned from this drilling are summarised below, in Figure 2 and in Appendix 1:
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64m at 1.55g/t gold and 0.26% copper from 22m (OWCD032),
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25m at 1.81g/t gold and 0.31% copper from 67.5m (OWCD033),
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2.4m at 1.61g/t gold and 0.32% copper from 134.1m (OWCD033), and
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2.9m at 1.17g/t gold and 0.29% copper from 145.0m (OWCD033).
Section 150
Section 250
Figure 2: Plan showing results from Orion and historical drilling at the NW Quadrant area of the Marydale Project. Dashed lines show location of IP sections shown in Figure 4.
The broad intersections returned in the Orion drilling are consistent with historical drilling results, which were detailed and discussed in the ASX releases of 18 November 2015 and 15 July 2016. Significantly, the Orion drilling has also generated structural data and lithological data which identified the following features:
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Mineralisation is hosted in a complex folded and sheared package with general moderate south-westerly dip;
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Two distinct orientations are observed at prospect level - the regional NNW-SSE fabric and a cross-cutting NE-SW orientation;
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Mineralisation is associated with sulphide-rich intervals (Figure 3) amenable to detection by electrical geophysical survey methods; and
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Mineralisation is remobilised or to some extent influenced/localised by shearing.