Saxby QLD
Nickel and Copper
FCN 100%

Saxby is located approximately 150 km north-northeast of Cloncurry, at the northern extent of the world class Mt. Isa Block (Figure 1). Historical work shows the potential for the discovery a mafic hosted (Voisey’s Bay style) large Ni/Cu massive sulphide system at Saxby.

Previous work by Falcon included geophysical modelling and the selection of two drill targets for deep diamond drilling to 750m. Of these holes SD02 intersected a +300m interval of iron sulphide bearing olivine gabbro, from 443m (beginning of basement) to the end of hole. The Ni/Cu assays were sub-economic, but show anomalism throughout the gabbro, which is supported by low level platinum anomalism. Further geochemical analysis for major oxides and rare earth elements identified that the +300m wide zone of Ni/Cu anomalous sulphides intersected are of definitive magmatic origin that supports Ni fertility of the complex and validates the Saxby gabbro body as a host for magmatic style Ni/Cu mineralisation.

A joint venture agreement has been entered into with Anglo American Exploration (Australia) Pty. Ltd. (Anglo) in respect to the Saxby Project where under the terms of the agreement Anglo will have the right to earn 70% equity by total expenditure of AUD$7 million over 6 years.

During the 2007 year Anglo carried the Squid TEM (transient electro-magnetic) survey with lines spaced at 600m, and 1200m designed to test for the minimum desired target size.

From the work the Squid TEM survey identified a large number of conductors that are highly encouraging and comprise of both large strong anomalies spanning multiple survey lines and discrete anomalies requiring infill work. Some conductors have coincident magnetic signatures and are internal to the gabbro body, whilst others are proximal (close to or on the outer edge, or just inside the gabbro) to the edges of the gabbro. Of particular interest are the strong Squid EM conductors generated in close proximity to the anomalism encountered in the earlier drill hole SD02, and the untested off-hole conductor in a historic hole drilled by MIM.

These conductors have the potential to represent a massive sulphide system containing higher grade Ni/Cu mineralization that will be the subject of a drill programme during the 2008 year.

A plan view showing an average bedrock conductivity image is shown in Figure 1. All the conductors are relatively strongly responsive and are likely to be sourced by sulphides including pyrrhotite within mafic rocks or sediments.

   Figure 1: Saxby Project. Conductivity Depth Slice, 700m - 1000m

Figure 2 shows a sectional representation of one such conductor on line 7,878,200N. Here the conductive cover sequence is clearly highlighted (yellow-orange) in the top ~400m, while the deep blue shows bedrock below. The orange-red feature in the centre of the section, dipping steeply to the east is a larg EM conductor, which coincides with an untested off-hole conductor produced in a nearby historic drill hole. This is one of many high priority targets to be drill tested.

  Figure 2: Saxby Project. Section 7878200mN. Low Temperature Squid TEM Conductivity Depth Image

 The drill programme consisting of a minimum of 5,000m to test the conductors is scheduled to commence in May 2008.              

    This Project was updated May 2008

©Falcon Minerals Limited MMIV