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SAXBY PROJECT – MT ISA BLOCK - QUEENSLAND

(Gold, Copper-Gold)

(Falcon 100%)

The Saxby Project is 150 km northeast of Cloncurry in northwest Queensland.  The project has been divested to Strategic Energy Resources Limited.

The target rocks, termed basement are buried beneath 400m of younger sedimentary rocks and as such, exploration is challenging and high risk. Nonetheless, the district is highly prospective as the buried basement rocks are interpreted as belonging to the Eastern Succession of the Mt Isa Province which has a long and proven record of mineral endowment. The Eastern Succession hosts significant copper-gold, molybdenum, lead-silver-zinc and uranium deposits and is recognised as a world-class exploration destination.

Falcon and its former joint venture partners have used airborne magnetic, ground gravity and ground electromagnetic surveys to facilitate mapping of prospective units under deep cover followed by diamond drill testing of selected targets. The technical success rate has been high with diamond drill holes intersecting low-grade nickel-copper sulphides in gabbro-norite, anomalous uranium in pegmatoid-bearing metasedimentary rocks, elevated copper-rare earth elements in skarn and structurally-hosted gold at the contact between meta-mafic and meta-felsic rock types.

 

Lucky Squid Gold Prospect

The gold discovery was made in 2008 with drill hole SXD005. It intersected 17m at 6.75g/t Au from 631m and includes a high-grade core of 5m at 19.3g/t Au from 635m. This hole also intersected a second zone of lower-grade gold mineralization (7m at 1.98g/t Au from 614m).

The focus in 2010 was to accelerate gold exploration around the discovery hole. This work was managed and operated by AngloGold Ashanti Australia Limited (AngloGold) up until their withdrawal in February 2011. AngloGold completed detailed geophysical surveys followed by the drilling of five diamond holes (4,044m).  Drill hole SXDD014 confirmed the importance of the gold discovery and intersected 15m at 9.09 g/t Au from 701m including a high-grade core of 8m at 15.09 from 701m. A further zone of gold mineralization was intersected deeper in the hole (3m at 3.57g/t Au from 747m).

Falcon drilled a further four deep diamond drill holes in 2012.  The drill holes intersected broad zones of faulting and alteration characterised by anomalous copper and a few narrow gold intercepts (the best being SXDD016: 1m at 26.1g/t Au from 602m and SXDD017: 3m at 3.97g/t Au from 628m).  These results did not meet expectations of substantial and wide extensions of gold mineralisation away from the initial discovery holes.

 

 Table 1: Summary of Gold Results at the Lucky Squid Gold Prospect

Hole Id

Interval (m)

Au g/t

From (m)

Year

SXDD005

3.2

3.74

618

2008

SXDD005

17

6.75

631

2008

SXDD014

1

2.51

643

2010

SXDD014

1

2.95

667

2010

SXDD014

1

1.14

684

2010

SXDD014

15

9.09

701

2010

SXDD014

2

5.00

747

2010

SXDD016

1

26.10

602

2012

SXDD016

1

4.29

741

2012

SXDD016

1

1.08

811

2012

SXDD017

1

2.96

599

2012

SXDD017

3

3.97

628

2012

SXDD017

2

3.10

777

2012

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gold mineralization is associated with variably altered, veined and brecciated meta-igneous rocks. It appears to be controlled by a prominent north-northeast trending structure that is readily observed in the magnetic data.

Falcon considers the Saxby gold prospect an important greenfields discovery and is mindful that the gold target must be large and high-grade to sustain an underground mining operation given the depth of the discovery.