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Gawler Craton

The Gawler Craton is a large stable block of Archaean to Middle Proterozoic basement sequences located within the western and northern parts of South Australia. The eastern margin, referred to as the Olympic Domain, contains a number of discrete magmatic centres associated with distinctive regional alteration assemblages intruded by granitoids belonging to the prospective Hiltaba Suite. Geophysical anomalies on late faults crossing the magmatic centres are considered by Red Metal to be highly prospective for IOCG style deposits.

The Gawler region experienced a period of intense copper-gold exploration following the discovery of the giant Olympic Dam deposit in 1972. In 1995 the Challenger gold deposit was discovered by utilising soil calcrete as a geochemical sampling medium, which increased interest in the Gawler Craton by gold explorers. In late 2001, the discovery of Olympic Dam style mineralisation at Prominent Hill renewed interest in the region and confirmed the strong potential of the Gawler Craton to host multiple world class IOCG deposits.

The Strategic Alliance allows Red Metal to earn an interest in projects over most of the five main magmatic centres interpreted within the Gawlewr Craton.

Pernatty Lagoon Joint Venture with Havilah Resources NL is located within the prospective Olympic Domain of the Gawler Craton about 125 kilometres south of Olympic Dam Mine. Under the terms of the joint venture the Alliance can earn 70% of the project by spending $1 million over five years. Initial drilling in 2005 tested a high gravity anomaly (measuring 5 milligal) focused along a northwest trending fault. The gravity and drilling program is continuing.

The Peake-Denison Joint Ventures include the Douglas Creek JV with Rio Tinto Exploration Pty Limited and the Peake & Denison JV with Rio Tinto Exploration Pty Limited and BHPBilliton Minerals Pty Ltd. The joint ventures cover the whole of an interpreted deep seated magmatic centre with associated IOCG style alteration located within the north-eastern margin of the Gawler Craton. The project tenements cover 3,418 square kilometres. This under-explored magmatic centre has a similar size, magnetic and gravity signature to that associated with the Olympic Dam mine. Re-interpretation by Red Metal has defined a number of gravity and magnetic targets located along large cross cutting structures above the interpreted magmatic centre. Detailed gravity surveys have been completed over the target areas. Drill testing of the highest priority targets commenced in late 2004 and is continuing.

The Ooldea Project is an emerging project located along the western margin of the Gawler Craton located some 800 kilometres northwest of Adelaide. This project covers regional gravity and magnetic targets inferred to have potential for IOCG deposits or mafic-ultramafic hosted nickel-copper mineralisation. Geology of the area is obscured by dune sands and Nullarbor Basin sediments considered prospective for heavy mineral deposits. Red Metal is currently reviewing historic work over the area in the light of nearby heavy mineral discoveries by Iluka Resources Limited.

The Algebuckina Project Wide spaced historic drill data on Algebuckina project, located in the northern Gawler Craton, has been utilised to interpret and map a possible oxidation boundary within a thick, pyritic sandstone unit which flanks the highly radiogenic Peake and Denison Inliers (Figure 3). This geological setting is prospective for roll-front type, sandstone hosted uranium mineralisation comparable with that at the Beverley uranium mine and Four Mile discovery within the Curnamona Craton.