Monax Mining (ASX:MOX) has discovered a potential kimberlite on...

Monax Mining (ASX:MOX) has discovered a potential kimberlite on its Margaret Dam Exploration Licence, located south of William Creek in South Australia.

Early 2015 drilling is planned to confirm whether target is a diamondiferous kimberlite.

Monax originally selected the licence to search for iron-oxide copper-gold targets within the basement of the Gawler Craton.

A review of the available aeromagnetic data showed two small circular features located within the southern part of the licence area, considered to be consistent with that of a kimberlite intrusion.

Initial modelling showed this feature was relatively shallow and not likely to represent an IOCG target.

Monax recently completed detailed ground magnetic and gravity surveys over the circular magnetic features to assist with modelling the dimensions and depth of the target.

The new ground magnetic data reveals a discrete elongate magnetic dipole and a smaller magnetic anomaly located to the southwest.

Geophysical modelling outlined a magnetic body at a depth of 80 metres, and an elliptical body 250 metres long by 45 metres wide with a tapering root to 400 metres depth was outlined.

Macrodiamonds and kimberlitic indicator minerals have been found within close proximity to Monax’s Margaret Dam project area.

In 1894, a single 1 carat diamond was found in alluvial gold workings at Peake Creek, north of William Creek, and in the early 1980’s, eight microdiamonds were reported from loam and stream sediment samples, along with numerous kimberlitic indicator minerals.

Monax believes that past failures to locate kimberlite bodies is due to the previous explorers' focus on diamond indicator studies and a lack of attention to the available geophysics.

The magnetic anomaly is located in an area of positive diamond indicators and may represent the source of the diamond indicator minerals discovered by previous exploration.