Gindalbie offshoot Coda sets exploration target for Emmie Bluff copper-cobalt prospect, launches big drilling campaign
Gindalbie Metals (ASX: GBG) has set an exploration target of between 43-71.6 million tonnes at copper-equivalent grades of between 0.53% and 2.3% for the Emmie Bluff prospect, part of its Mt Gunson project in South Australia. Gindalbie, which intends to spin off the Coda Minerals subsidiary that holds the Mt Gunson project to existing shareholders, said two exploration programs for Emmie Bluff were in advanced planning. One of the programs would include 28 diamond drill holes for 12,000m. A 2D seismic survey is also planned. Subject to Gindalbie shareholder approval, Coda will next month become an independent unlisted company, with about $7m cash, no debt and rights to 75% of the exciting Mt Gunson project. The Coda demerger is part of a broader transaction that will see the rest of Gindalbie acquired by Ansteel, for 2.6c cash per Gindalbie share. Gindalbie shareholders will vote on the Ansteel acquisition and the concurrent Coda demerger at scheme meetings on 3 July.
Gindalbie Metals has delivered an initial Exploration Target for the Emmie Bluff prospect at its Mt Gunson Copper-Cobalt project.
· An initial Exploration Target has been established at the Emmie Bluff prospect within the Mt Gunson project.
· The Exploration Target has been compiled from recent drilling results and historical drilling information.
· A comprehensive exploration program of approximately 12,000m of drilling plus 2D seismic surveying is planned to test the Exploration Target commencing in the second half of 2019.
Gindalbie is currently engaged in a farm-in with Terrace Mining Pty Ltd (Terrace), a wholly owned subsidiary of Torrens Mining Ltd (Torrens), to earn up to a 75% interest in the Mt Gunson Copper-Cobalt Project (Mt Gunson), located 135 km north of Port Augusta in South Australia.
The Company notes that the potential quantity and grade of the Exploration Target is conceptual in nature, and that there has been insufficient exploration to estimate a Mineral Resource. It is uncertain whether further exploration will result in the estimation of a Mineral Resource.
Gindalbie Chief Executive Officer Chris Stevens commented: “We have long believed that Emmie Bluff could represent a transformational opportunity for the Mt Gunson project, and today’s announcement continues to support that belief.
"We anticipate further exploration will greatly assist in refining our understanding of the prospect, and its potential impact of the project as a whole.
"The higher-grade Upper Layer will be of particular focus as we move into the next phase of exploration.”