West Musgrave

New Joint Venture

Strzelecki has stepped up its exploration effort in the West Musgrave and has successfully negotiated a new Joint Venture Agreement with Tortuga Advisors Ltd, an unlisted, public company incorporated in Victoria.

Under the agreement Tortuga may earn up to 80% interest in the tenements by spending $4 million on exploration within five years. Tortuga will earn its interest with three expenditure tranches of $0.75, $1.5 and $1.75 million corresponding to an earned interest of 15%, 51% and 80%. If STZ's interest reduces to 20% then STZ may elect to convert its share to a 14% free carried interest through to the development and mining of a deposit within the tenements.


This new agreement covers Strzelecki's nine tenements in the West Musgrave covering a total of 1,489 square kilometres. These are highly prospective for Gold, Copper, Nickel, PGE as well as Uranium, located as shown in Figure 1.  Strzelecki's eastern tenements cover the Proterozoic Palgrave complex and abut the grounds of BHP Billiton, where the Babel and Nebo Nickel discoveries are located. In the south, the tenements abut the exploration ground held by Beadell Resources, which recently announced an encouraging gold discovery in their drilling associated with brecciated rhyolites and agglomerates that are abundant on Strzelecki's ground.

Figure 1 - Location of Strzelecki's West Musgrave Project

 

Soil Sampling Program

Strzelecki has recently completed a reconnaissance soil sampling program over the six eastern tenements (E69/1564, E69/2177-2181) with the aim of further delineating the complex stratigraphy of this remote region and identifying mafic lithologies that appear to be the primary hosts for mineralisation identified to date. A total of 415 soil samples were collected and assayed for 53 elements, including Au, Cu, Ni, PGE and U. In addition, 63 rock chip samples were collected for petrological analysis to assist in the compilation of a detailed geological map over the tenements.

 

Figure 2 - Eastern Tenements

The results from this soil sampling program have been reviewed in conjunction with open file data, and statistically interrogated to identify the probable source lithologies. Figure 3 shows the distribution of various geochemical sampling programs that have been completed by Strzelecki, including the most recent soil sampling program. Figure 4 shows the distribution of open file soil and rock chip samples that were collected by Western Mining and have been also used in this investigation.

 


Figure 3 - Strzelecki Sampling Programs

Figure 4 - Open File Sampling

Based on the interrogation of all data, mafic and  ultramafic lithological units were interpreted within the area. Several statistically anomalous areas have been identified that warrant further exploration.

Gold

Gold responses tend to be subdued probably due to an aeolian sand component in the samples, and in this context the regional soil response of 50ppb were considered to be significant. There are several zones which show elevated gold responses. In particular, two north easterly trending zones of Au anomalies, surrounding a northerly extending major palaeo-channel feature have been determined, as indicated in Figure 5.

 

Figure 5 - Gold Soil Geochemistry

Copper

Copper responses are more widespread showing a correlation with anomalous PGE, however, still with a similar to Au anomaly location/pattern along a north east trending zones (Figure 6). These zones can be easy correlated with dominant a north east oriented set of regional faults/structures and lithological trend, suggesting a possibility that anomalous geochemistry could be related to such structures. This warrants further exploration in the area.

Figure 6 - Copper Soil Geochemistry

Nickel

The distribution of the Nickel responses (Figure 7) shows close correlation with the Au and Cu responses. There are two distinct areas of elevated responses on each side of the palaeo-channel. Although only one area of mafic lithologies is known from this part of the tenements, the elevated Ni responses suggest the presence of additional mafic sources.

Figure 7 - Nickel Soil Geochemistry

Zinc

The Zinc responses (Figure 8) show close spatial correlation with the Cu and Ni geochemical anomalism pattern with strongly elevated responses, particularly consistent with the Nickel responses.

Figure 8 - Zinc Soil Geochemistry

Uranium

The south west corner of the Project area has substantial outcrop of felsic/acid lithologies. The radiometric image in Figure 9 shows strong contrast between these levels and the

extremely low levels throughout the rest of the area which likely to be due to the sand cover.

 

Uranium levels up to 95ppm, as recorded on the east side of the palaeo-channel, was considered to be anomalous and worthy of follow up exploration.

 

Figure 9 - Uranium Soil Geochemistry

Molybdenum

The Mo responses shown in Figure 10 show a similar distribution to other elements with the two zones trending north east, and appear to be related to the north east trending structural zones.


Figure 10 - Molybdenum Soil Geochemistry

Inferred Geology

Based on the lithologies indicated by the geochemical analysis of the soil and calcrete samples and field identification of numerous rock chip samples, and limited regional geological information, the inferred geology has been interpreted (Figure 10). The majority of samples in the southwest and central area west of the palaeo-channel have been interpreted as andesitic units. A north-south zone along the western side has been interpreted to be predominately basaltic, while there appears to be a mix of andesitic and basaltic units to the east of the palaeo-channel. Four areas of ultramafic units have been inferred as shown in Figure 10.

The structural components and the extent of the inferred rock units are interpreted from the regional magnetic data. This indicates that tectonic structures in the east part of the Project area  (Warburton) are dominated by intensely developed north east oriented fault system, with a less accentuated north west fault trend. Comparing dominant distribution of geochemical anomalies for Au, Cu, Ni and Zn along north east trend, their correlation with structures of this system can be interpreted (Figures 5 - 9).

Figure 11 - Inferred Geology