Gum Flat Project – EL 3422, JV with Indian company Mineral Enterprises Limited
Gum Flat Project – EL 3422 (LML has exclusive rights to all minerals) The Gum Flat Project is located on southern Eyre Peninsula within 20km of Port Lincoln and is prospective for both magnetite and hematite iron ore plus a large range of polymetallic minerals including gold, uranium and base metals (Cu, Pb, Zn, Ni). Extending west from Port Lincoln with two railway lines (one now disused) and a major highway running through the area, EL3422 is ideally located with respect to infrastructure and proximity to a major shipping port. High iron and minor base metals have been previously identified at the Rifle Range prospect where CRAE Pty Ltd aircore drilling intersected banded iron formation (BIF) at depths of 25-40m above an intense aeromagnetic anomaly. The aggregate length of interpreted BIF in EL3422 based on aeromagnetic data is about 30km. However, the more intense 5km long aeromagnetic anomaly, when combined with other smaller high intensity aeromagnetic anomalies between Rifle Range and Greenpatch, outlines an exploration target for magnetite BIF that could be more than 250 Mt. In addition to magnetite targets, detailed interpretation of high resolution aeromagnetics in the Gum Flat Project area has identified several potential hematite targets that might contain direct shipping iron ore. Possible hematite targets include zones of reduced magnetic amplitude, fault zones with clear evidence of magnetite destruction and favourable structural settings including fold hinges and complex fault patterns. Middleback BIF horizons of the Hutchison Group are closely associated with sulphide-rich and calcsilicate units that are host to numerous base metal occurrences and old mines throughout eastern Eyre Peninsula. Six hematite targets (H2 to H7) have been identified for aircore and/or shallow slim-hole RC drilling during the next quarter. Aboriginal heritage clearances and Government work program approvals have been received and drilling is scheduled to begin in late July or early August. Drilling would be followed by detailed gravity surveys over the best opportunities for development. Calcrete sampling has been undertaken over parts of the project area but the thickness of the extensive Bridgewater Formation calcarenite cover has masked any basement mineralisation.
LML Price at posting:
0.0¢ Sentiment: Buy Disclosure: Held
