The latest ASX release on 7 December 2012 by Tasman Resouces for...

The latest ASX release on 7 December 2012 by Tasman Resouces for the ‘SA Exploration and Mining Conference Presentation’ provided an early indication where TAS-RIO Tinto are drilling their latest hole, VUD 12. Normally, we don’t get to find out until after the hole is completed and the Drilling Update is released.




I have highlighted the location and direction of VUD 12. It looks like the latest hole is being drilled from near the VUD 10 location to drill along the edge of the eastern flank of the main southern gravity anomaly at Vulcan.

Below is a summary of the drilling to date in the latest campaign.

Vulcan - Current Campaign Drilling Summary - extracts from ASX Releases

In September, 2012 drilling resumed at Tasman’s 100% owned Vulcan Iron-Oxide Copper Gold Uranium (or IOCGU) project located approximately 30km north of Olympic Dam.

Tasman has entered a Farm-In and Joint Venture Agreement (Agreement) over the project with Rio Tinto Exploration (RTX). Following payment of $10 million from RTX to Tasman to fund the initial exploration program, Tasman is managing the initial exploration program, which is to be completed within 12 months of the date of the Agreement.

28 September 2012

VUD 9 (a vertical hole located at 694,686mE and 6,657,191mN; GDA 94 (MGA Zone 53), the first hole to be drilled under the Agreement, was designed to initiate testing within the high priority southern portion of the Vulcan Project, which had previously been undrilled due to access restrictions.

VUD 9 intersected the basement at approximately 779m, and was completed prematurely at 1,111m due to drilling problems. The entire basement intersection of 332m consists of a sequence of highly altered breccias, dominated by a 242m thick zone of hematite breccias commencing at 838m. The breccias do not contain significant visible copper sulphides and assay results for this initial hole are not expected to be high.

These hematite breccias are very similar to those which characterize the central, essentially barren core of the Olympic Dam deposit. At Olympic Dam, high grade mineralization often occurs at depth beneath these barren rocks, but unfortunately, at Vulcan, drilling beneath the hematite breccias was effectively prevented due to drilling problems.

Drilling has now commenced on VUD 10.

19 October 2012

The second drill hole, VUD 10, in the recently commenced initial exploration program under the Tasman/Rio Tinto Exploration Farm-In/Joint Venture Agreement at Tasman’s Vulcan IOCGU project has been completed at 1256.9m.

The hole intersected over 398m of altered, veined and brecciated volcanic host rocks, but did not intersect significant visible IOCGU-style mineralisation.

The second hole, VUD 10 is located at 695,975mE and 6,657,342mN (GDA 94, MGA Zone 53), and is inclined at -70 degrees to the south east. It was designed to test part of the main southern gravity anomaly at Vulcan, along strike to the west-southwest from drill hole VUD 7, which had previously intersected over 160m of IOCGU mineralization within a hematite breccia host.

VUD 10 intersected 398.3m of sericite-chlorite-carbonate altered, veined and brecciated host rocks, believed to have been originally volcanic in origin. Relatively minor hematite was intersected, and weak sulphide mineralization occurs throughout, however assay results for the hole, when received are not expected to be high.

Drilling of the third hole, VUD 11 has commenced.

8 November 2012

Whoops! A please explain ‘Price and Volume Query ‘ from the ASX. This appears to coincide (approximately) with the time the drilling reached and was drilling into the basement at 836m (or soon after). I would expect there will be a tighter control over the apparent release of informal market sensitive information for the current VUD 12 and future holes.

21 November 2012

Drill Hole VUD 11, the third hole in the current drill program at Tasman’s Vulcan IOCGU project has intersected over 620m of IOCGU – style highly altered and brecciated rocks.

These rocks unfortunately contain only minor amounts of copper sulphides, and assays, when received are not expected to be high.

Drill hole VUD 11 (located at 695,366mE and 6,657,208mN; GDA 94, MGA Zone 53), is inclined at -70 degrees and drilled towards the south, and is the third hole to be drilled under the Agreement.

It was designed to test the central portion of the very large gravity anomaly, which comprises the southern segment of the Vulcan target.

VUD 11 intersected the basement at approximately 836m (784m vertical), and was completed at 1467m, with the entire basement intersection of 631m consisting of a sequence of highly altered and brecciated rocks which included a 12m intersection of massive hematite. The composition of the rocks is dominated by minerals which characterise IOCGU ore deposits such as Olympic Dam; in particular, sericite, hematite, carbonate and quartz.

However, VUD 11 contains relatively minor amounts of copper sulphides, and assays for copper, gold and uranium, when received, are not expected to be high.

Despite the relative paucity of mineralization in VUD 11 and the two previous holes drilled in this southern segment of the Vulcan IOCGU target (VUD 9 and 10, Tasman is encouraged by the magnitude and large aerial extent of the geological processes (extensive hematite rich brecciation and pervasive hematite-sericite-carbonate alteration) that have clearly been operating in this part of Vulcan. The task is now to find where this very large system has concentrated the copper, gold and uranium normally associated with these IOCGU geological processes.

Drilling has now commenced on VUD 12, the fourth hole in the Tasman – Rio Tinto Exploration Farm-In and Joint Venture.

Brief summary of recent drilling results for the main southern gravity anomaly at Vulcan.

2011
VUD 7 Intersected strong chlorite/sericite altered basement volcanics at 847m followed by a thick zone of “classic” OCGU-style mineralised hematite breccias between 1065m and the bottom of the hole at 1227.8m. Mineralisation consists of disseminated pyrite (iron sulphide) and chalcopyrite (copper iron sulphide), hosted within a breccia composed of fine grained black to steely-grey hematite, with lesser carbonate minerals and quartz. VUD 7 intersected over 160m of IOCGU mineralization within a hematite breccia host.

2012
VUD 9 Intersected the basement at approximately 779m, and was completed prematurely at 1,111m due to drilling problems. The entire basement intersection of 332m consists of a sequence of highly altered breccias, dominated by a 242m thick zone of hematite breccias commencing at 838m.

VUD 10 Intersected 398.3m of sericite-chlorite-carbonate altered, veined and brecciated host rocks, believed to have been originally volcanic in origin. Relatively minor hematite was intersected, and weak sulphide mineralization occurs throughout, however assay results for the hole, when received are not expected to be high. Completion depth was1256.9m. Basement depth was not provided.

VUD 11 Intersected the basement at approximately 836m (784m vertical), and was completed at 1467m, with the entire basement intersection of 631m consisting of a sequence of highly altered and brecciated rocks which included a 12m intersection of massive hematite. The composition of the rocks is dominated by minerals which characterise IOCGU ore deposits such as Olympic Dam; in particular, sericite, hematite, carbonate and quartz.

Other encouraging indicators are:

- The presence at Vulcan of all the key elements (copper, gold, silver, uranium and rare earths) has been confirmed;
- The Olympic Dam deposit, 30 km away, is interpreted to have been formed at the same time as Vulcan, and is one of the world’s largest ore deposits;
- It was not until the sixteenth hole was drilled at Olympic Dam that high grade mineralization was encountered.

To date, each hole that has been drilled into the margins of the main southern gravity anomaly at Vulcan have produced increasing widths of highly altered breccias which characterise IOCGU ore deposits. The Tasman and RIO Tinto JV are probing around the edges of the gravity anomaly at depth where the CGU deposits tended to be deposited at Olympic Dam. They appear to be learning more about the structure with each completed hole. Be patient!

I suspect that VUD 12 will take approximately 5 weeks to complete, if it is of similar depth to VUD 11. The drilling update is due sometime in the next 2 weeks.

DYOR and Good Luck to all shareholders

GrayNomad