ASX-listed Coda Minerals says it is unlocking the potential of its newly discovered Emmie Bluff iron oxide, copper-gold or “IOCG” deposit in South Australia’s Gawler Craton region, with new directional diamond drilling intersecting copper sulphide zones broadly comparable to the recently announced discovery hole. The new intercepts are reportedly dominated by high-tenor copper sulphides including bornite and covellite suggesting Coda is closing in on a large-scale mineralised structure.
The program is being fast tracked with four rigs currently operational at the site, about 450 kilometres north-west of Adelaide.
The first two of three planned wedges holes from Coda Mineral’s recent IOCG discovery hole have now been completed with the company saying preliminary results have “exceeded expectations”.
Interestingly, Coda reported both completed holes intersected broad copper sulphide zones 36m-to-82m away and comparable to the spectacular 50m mineralised intercept from the maiden drill hole. An increase in alteration intensity was noted which management said indicated mineralisation was improving and pointed towards a large-scale mineralising structure to the east.
A fourth rig recently arrived on site to commence a second diamond hole from surface over Emmie Bluff Deeps, with at least one wedge hole planned and additional wedges to be undertaken depending on results.
With a swag of samples already at the lab, ongoing assay results are due to flow in before the end of the month. However, the company’s geological team has been highly encouraged by site inspection of drill core.
Coda Minerals CEO Chris Stevens said: “They have not only provided us with very clear visualisation indications of a significant increase in copper mineralisation intensity but they have also demonstrably achieved their primary objective of assisting us with exploration vectoring. With multiple geological and geochemical indicators all pointing in the same direction, we are increasingly confident in our exploration model, and the presence and location of a large-scale mineralising structure to the east of (the discovery hole).”
Coda recently swelled its bank coffers to $21 million after raising $14.4 million via an oversubscribed capital raising. The company said funds would be channelled towards a comprehensive program of deep holes at Emmie Bluff, resource drilling and an aggressive regional exploration program.
Resource drilling across the Emmie Bluff sediment deposit is looking to confirm an exploration target of 46.1-to-76.8 million tonnes grading at between 0.3 and 1.6 per cent copper. The company will likely add this substantial resource to its existing inventory of close to 20 million tonnes at 0.9 per cent copper and 8 g/t silver hosted in the MG14 and Windabout deposits south of Emmie Bluff and begin to examine potential development options for the base metal project.
The company’s Elizabeth Creek tenure occupies 739sq.km on the eastern margin of the Gawler Craton and lies only 100km south of BHP’s revered Olympic Dam mine, widely regarded as one of the most valuable copper-gold accumulations in the world and held up as the “type” example of an IOCG deposit. BHP continues to apply its proprietary knowledge, recently uncovering the Oak Dam West IOCG deposit, just 16km north of Coda’s Emmie Bluff find.
With four rigs on the ground, pockets full of cash and samples at the laboratory ready to be assayed, Coda will no doubt continue to command market attention in coming months. The stock is up more than 300 per cent since the start of the year, capitalising the explorer at about $116 million.
Is your ASX-listed company doing something interesting? Contact: matt.birney@businessnews.com.au
By Matt Birney
