Gunson Resources intersects sulphide rich zone with partner Xstrata in Olympic copper belt

Gunson Resources (ASX: GUN) has announced that a second hole at the Emmie Bluff Prospect intersected a 6 metre thick sulphide rich zone in basement rocks from 946.7 metres - which was drilled by Xstrata (LON: XTA) subsidiary Noranda Pacific Pty Limited.

The most abundant sulphide is the copper sulphide chalcopyrite, with lesser iron sulphide as pyrite, and in contrast to the first hole the top part of the basement from 900 metres to 955 metres, is brecciated and rich in hematite.

Below 955 metres to the end of the hole at 1077 metres, the main rock type is variably hematite altered sandstone

Gunson said that the copper sulphide intersection is encouraging but further drilling at the prospect will await the assay results and further geological and geophysical studies.

Where the story for Gunson becomes extremely interesting, is the location of Emmie Bluff.

The prospect is strategically positioned in the Olympic Copper-Gold Province of South Australia, with The Olympic belt over 500 kilometres long and hosts about 75% of the known copper resources in Australia.

Importantly - the project straddles about 10% of the belt as four contiguous exploration licences covering about 1,320 square kilometres.


Future program
The next hole in the 2011 drilling program was to be first pass testing of a gravity magnetic geophysical target around 1.8 kilometres east of the north east shore of Lake Windabout, which is positioned 17 kilometres south of Emmie Bluff. However, drilling was postponed until next year due to access issues.


Noranda Pacific funding

Drilling is being funded by Noranda Pacific which has the right to earn an extra 24% interest in the project, in addition to the 51% equity it already holds, by spending an additional $6.5 million (for a cumulative amount of $10 million) on exploration by mid-June 2013. At the end of September 2011, Noranda had spent around $5.2 million.

Originally published at: http://www.proactiveinvestors.com.au/companies/news/20590/gunson-resources-intersects-sulphide-rich-zone-with-partner-xstrata-in-olympic-copper-belt-20590.html