Salt River Resources Ltd Salt River Resources Ltd South Africa s - - PowerPoint PPT Presentation

SLIDE 1

Salt River Resources Ltd Salt River Resources Ltd

South Africa South Africa’ ’s Newest Mineral Oasis: s Newest Mineral Oasis: The Salt River Zn The Salt River Zn-

• Cu

Cu-

• Pb

Pb-

• Ag

Ag-

• Au VMS

Au VMS Deposit Deposit Craig R. McClung Craig R. McClung

Current Exploration Projects in Africa Current Exploration Projects in Africa GSSA DPP Course GSSA DPP Course 18 April 2008 18 April 2008

SLIDE 2

Acknowledgements

• Board of Directors
• Thanusha Naidoo
• PPM Group, University of Johannesburg

– Prof. Jens Gutzmer – Keith Osburn – Akani Mathebula

• Nic Norman

SLIDE 3

Disclaimer

• This presentation is directed at individuals having advanced

scientific and geologic knowledge.

• No representation or warranty is given or implied by Salt River

Resources Ltd, parent company Thabex Ltd, its’ directors, or their associates as to the accuracy or completeness of the information or

• pinions contained herein and no liability is accepted for any such

information or opinions.

• The presentation may contain certain forward looking statements

that are subject to certain risks and uncertainties, e.g. the company’s plans, goals and prospects. Actual results may differ materially.

• This presentation does not constitute an offer to purchase, sell,

issue or subscribe for shares in Salt River Resources Ltd, Thabex Ltd or associated companies

SLIDE 4

Outline

• Location
• Namaqua Metamorphic Province
• Salt River Deposit
• Styles of Mineralisation
• Geologic Model
• Comparison
• Classification
• Summary

SLIDE 5

Location

• Located in the

metallogenically significant Namaqua Metamorphic Province

• Occupies a crescent-

shaped body covering

• ver 80 000 km2
• Hosts several

economically- significant mineral districts and deposits

Modified after Hartnady et al. (1985), Thomas et al. (1992; 1993) and Hanson (2003).

SLIDE 6

Namaqua Metamorphic Province

• Western continuation of the Namaqua-Natal

Metamorphic Belt

• Extends from Olifantshoek to Atlantic Seaboard and

Bitterfontein to Luderitz, Namibia

• Characterized by poly-deformed and poly-

metamorphosed volcano-sedimentary successions and intrusive igneous rocks

• Deformed and metamorphosed during the Namaquan

Orogeny

• Metallogenically well endowed:

– Volcanogenic Massive sulphides, Broken Hill-type, Magmatic Ni- Cu (Hondekloof), Intrusive Cu (Okiep), Cu-Mo Porphyries (Haib), Fe-Oxide-hosted Cu ± Au & vein-hosted REE-Th-Cu-Fe (IOCG ?), base ± precious metal veins, alluvial & marine diamonds, varies industrial minerals, uraniferous granites, etc.

SLIDE 7

Namaqua Metamorphic Province

Based on structural, lithological, and geochronological differences, the NMP may be divided into four subprovinces (Kroner and Blignault, 1976):

– Richtersveld Subprovince – Kheis Subprovince – Bushmanland Subprovinces – Gariep Subprovince

Modified from Hartnady et al. (1985), Joubert (1986) and McClung (2006).

SLIDE 8

SLIDE 9

Bushmanland Subprovince

• Eastern juvenile bimodal volcanic arc and

associated metasedimentary rocks (Areachap Terrain)

• Central and western metavolcano-

sedimentary succession of metapsammo- pelitic schists and gneisses, quartzites, calc-silicate rocks and metabasic volcanic rocks intruded by syn- to post-collisional granitoids (Kakamas, Aggeneys and Garies Terrains)

SLIDE 10

Deformational Events

• D1 – Orange River Orogeny (1700-1900 Ma; Blignault et al., 1983)

– – Solely restricted to the Richtersveld Subprovince Solely restricted to the Richtersveld Subprovince – – F F

1 1 –

– Tight, i Tight, isoclinal folds with tapering hinge zones and axial planes parallel to bedding – Thrust faulting – northward directed – M1 – Regional to contact upper greenschist-facies

• D2-3 – Namaquan Orogeny (1020-1220 Ma; Robb et al., 1999; Clifford et al., 2004)

– – D D

2 2 (1180

(1180-

• 1220 Ma; O

1220 Ma; O’ ’okiepian Episode)

• kiepian Episode)
• F

F2

2 –

– Isoclinal, symmetrical folds with rounded hinge zones that conc Isoclinal, symmetrical folds with rounded hinge zones that concentrate sulphides orebodies entrate sulphides orebodies

• Thrust faults

Thrust faults – – southwesterly directed, cross southwesterly directed, cross-

• cut F

cut F2

2 and folded by F

and folded by F3

3 folds

folds

• M

M2

2 –

– Regional to contact amphibolite Regional to contact amphibolite-

• to granulite

to granulite-

• facies

facies

• Intrusion of the Little Namaqualand Suite and associated granito

Intrusion of the Little Namaqualand Suite and associated granitoids ids

– – D D

3 3 (1020

(1020-

• 1040 Ma ; Klondikian Episode)

1040 Ma ; Klondikian Episode)

• F

F3

3 -

• Large-scale, open, asymmetrical folds responsible for preservation of metasediments

responsible for preservation of metasediments

• M

M3

3 -

• Regional

Regional-

• contact upper amphibolite

contact upper amphibolite-

• to granulite

to granulite-

• facies

facies

• Intrusion of Spektakel Suite and associated granitoids

Intrusion of Spektakel Suite and associated granitoids

• D4 – Post-Namaquan Deformation

– – Low angle extensional faulting Low angle extensional faulting – – F F

4 4 -

• N to NW

N to NW-

• trending monoclines

trending monoclines – – Late shear zones and strike Late shear zones and strike-

• slip faults that cross

slip faults that cross-

• cut F

cut F

4 4

– – M M

4 4 –

– Retrograde Retrograde

SLIDE 11

In Good Company

Modified from Norman (2006).

SLIDE 12

Salt River Deposit

• Located 100km SW of Kakamas in the Northern Cape Province on the

property Remainder of the farm Adjoining Geelvloer No. 197 (Kraandraai)

• Geologically located in the supracrustal rocks of the Garies Terrain

(Joubert, 1986; McClung, 2006)

• Hosted by the Geelvloer Sequence, Kenhardt Subgroup of the

Bushmanland Group (Paizes, 1975; Joubert, 1986)

– Characterized by immature metasedimentary rocks (i.e. biotite schist/gneiss, para-amphibolite/calc-silicate rocks, feldspathic quartzites, cordierite gneisses)

• Deposit located in the footwall of the Geelvloer (Shear Zone) Thrust
• Age constraints on the mineralisation and host rocks suggest deposition
• ccurred around 1300 Ma (Reid et al., 1997; McClung, 2006)
• Mineralisation comprises stratabound “horizon” of massive to

disseminated pyritic sulphides with elevated base metal contents

– Historically interpreted as a metamorphosed volcanogenic massive sulphides hosted by bimodal metavolcanic rocks

SLIDE 13

Location - Salt River Deposit

Prospecting Area Major Gravel Road Salt River Deposit

Putsberg Putsberg Deposit Deposit Salt River Salt River Deposit Deposit Looking East Looking East Looking West Looking West

SLIDE 14

Lovedale 201 Quagga-Maag 200 Hartebeesvlei 199 Putsberg 203

Mineralised Showings

5 10km Salt River Deposit

Gannapoort 202 Adjoining Geelvloer 197 Graafwater 198 Vaal-Kop 225

Prospecting Area Major Gravel Road Farm Boundaries

Modified after Maclaren (1988).

Salt River Deposit Mineralised Showing Major Shear Zone

SLIDE 15

Salt River - Surface Trace

Axis of orebody Axis of orebody Sub Sub-

• outcropping exposure
• utcropping exposure

SLIDE 16

Exploration History

• 1973 - USA-based Phelps Dodge Corporation identified an aeromagnetic

anomaly that was followed up by geological mapping, geochemical surveys and widely spaced percussion and diamond drilling

• 1977 - Gencor and Union Corporation conducted more diamond drilling

and geophysics

• 1981 - Gencor calculated a sub-economic Inferred Mineral Resource of

7.18 Mt @ 2.31% Zn, 0.86% Cu, 0.51% Pb, 24 g/t Ag & 0.64 g/t Au

• 1993 - Goldfields conducted further regional mapping and limited diamond

drilling (3 diamond drill holes)

• 1995 - Pioneer Minerals (Pty) Ltd obtained the rights to the property and

formed a joint venture with Thabex Ltd

• 1997 - JV ended and Thabex exercised its rights to acquire the mineral

rights in Thaba Egoli Mining & Exploration Ltd (100% held by Thabex)

• 2005-2006 - Thaba Egoli drilled 26 closely spaced and two metallurgical

diamond drill holes

• 2007 - Thaba Egoli’s name was changed to Salt River Resources Ltd and

estimated a new Measured and Indicated Mineral Resource

SLIDE 17

Deposit Confirmation

20 20° °

• utcrop
• utcrop

25 25° ° Salt River Salt River deposit deposit

Graafwater West Graafwater West Graafwater Graafwater Central Central Graafwater East Graafwater East

SLIDE 18

Drilling Program

SLIDE 19

Potential Mineralization

23.3 Mt @ 1.5% Zn, 0.7% Pb, 0.4% Cu, 21 g/t Ag & 1.0 g/t Au

Total Mineral Resource

Measured Resources

9.97 Mt @ 1.8% Zn, 0.5% Cu, 0.6% Pb, 21 g/t Ag & 0.5 g/t Au

Indicated Resources

14.13 Mt @ 1.8% Zn, 0.7% Cu, 0.4% Pb, 19 g/t Ag & 0.7 g/t Au

Total Mineral Resource at Salt River Project: 47.4 Mt at 1% Zn threshold

Salt River West Occurrences Soutputs Noord Occurrence

SLIDE 20

Stratigraphy

Not to scale.

SLIDE 21

Styles of Mineralisation

• Base metal sulphides occur as four distinctly

different styles of mineralisation

– semi-massive to massive sulphide

• very fine- to fine-grained pyritic horizon

– streaky sulphides

• disseminated to stringer sulphides in foliated and contorted

coarse-grained, biotite/phlogopite-quartz ± amphibole rock

– disseminated sulphides

• disseminated to stringers of sulphide in foliated fine- to

medium-grained cordierite-biotite/phlogopite gneiss

– mineralised calc-silicate gneiss

• sulphide veins in silicified, altered and/or brecciated calc-

silicate rock

SLIDE 22

Semi-Massive to Massive-type Sulphide

• Characterized by a very

fine- to fine-grained, semi-massive to massive, durchbewegung-textured pyritic horizon

• Ore mineralogy consist of

pyrite, sphalerite, chalcopyrite, galena ± barite, magnetite and molybdenite

• Stratiform and

stratabound

• Aerially occurs

throughout the deposit

SLIDE 23

Streaky-type Sulphides

• Characterized by disseminated

to stringers of semi-massive sulphides in foliated and contorted, biotite/phlogopite- quartz ± amphibole interbedded with Mg-rich altered rocks

• Ore mineralogy consist of

pyrite, chalcopyrite ± sphalerite, galena and magnetite

• Stratabound, but locally
• bserved cross-cutting

associated Mg-rich altered rocks

• Aerially restricted to the higher-

grade (eastern) portion of the deposit

SLIDE 24

Disseminated-type Sulphides

• Characterized by

disseminated to stringers

• f sulphides in a foliated

cordierite- biotite/phlogopite gneiss

• Ore mineralogy consist of

pyrite, chalcopyrite, sphalerite, galena and magnetite

• Stratabound, but locally
• bserved cross-cutting &

grading into host rocks

• Spatially restricted to the

higher-grade (eastern) portion of the deposit

SLIDE 25

Mineralised Calc-silicate-type

SLIDE 26

Sulphide Horizons

• Three economic horizons dipping approximately

25-30º to the northeast

– Upper Sulphide Zone

• semi-massive to massive-type with minor disseminated- and

streaky-type sulphides

• 2.8m mean thickness

– Middle Sulphide Zone

• disseminated-type with occasional “lenses” of streaky-type

sulphides

• 2.3m mean thickness

– Lower Sulphide Zone

• interbed streaky- and disseminated-type sulphides
• 3.2m mean thickness

SLIDE 27

Cross-Section AA’

A A 20 20° ° 25 25° °

• utcrop
• utcrop

A A’ ’

SLIDE 28

Section AA’ (dip 25 degrees)

SLIDE 29

Mineralisation Contours

~ 10 Mt @ 2.3% Zn, 1.2% Cu, 0.5% Pb, 23 g/t Ag and 0.8 g/t Au ov ~ 10 Mt @ 2.3% Zn, 1.2% Cu, 0.5% Pb, 23 g/t Ag and 0.8 g/t Au over average 3.3 m er average 3.3 m

• r ~2.5 to 3% Cu equiv.
• r ~2.5 to 3% Cu equiv.

SLIDE 30

Metal Distribution

Pb (wt %) Pb (wt %) Zn (wt %) Zn (wt %) Cu (wt %) Cu (wt %)

SLIDE 31

Geologic Model

Not to scale. Modified after Hutchinson et al (1971).

SLIDE 32

Pre-Namaquan Orogeny (~1300 Ma)

BG – Bushmanland Group; GS - Grünau Sequence; GVS – Geelvloer Sequence; RCB – Richtersveld Cratonic Block

HBV HBV – – Hartebeest Vlei Prospect Hartebeest Vlei Prospect GWW GWW – – Graafwater West Prospect Graafwater West Prospect GWC GWC – – Graafwater Central Prospect Graafwater Central Prospect GWE GWE – – Graafwater East Prospect Graafwater East Prospect

SR SR – – Salt River Deposit Salt River Deposit

SP – Soutputs Prospects (Nokami Mining)

E E W W

Modified after McClung (2006).

SLIDE 33

Early Namaquan Orogeny (~1200 Ma)

BG – Bushmanland Group; GS - Grünau Sequence; KF – Koeris Fromation; RCB – Richtersveld Cratonic Block

N N S S

Modified after McClung (2006).

SLIDE 34

Comparison with Aggeneys & Prieska/Copperton

• Aggeneys-Gamsberg

– Metapelitic schist – Tabular to cigar-shaped body & no feeder zone – Pb, Zn, Cu, Ag, Ba ± Au – 1300-1350 Ma (Pb-Pb Model Age; Reid et al., 1997) – Intracontinental rift to back- arc basin – Associated with basic sills – Mag-py-marc-po-sph-gn- cpy-bar – Metal zonation visible at district scale

• Prieska/Copperton

– Metapelitic gneiss – Tabular with a visible feeder zone – Zn, Cu, Pb, Ag, Au ± Mo – 1280-1290 Ma (U-Pb zircon; Cornell et al., 1990; Bailie, in prep.) – Back-arc basin – Contemporaneous bimodal volcanic rocks – Py-sph-cpy-po-gn-bar-tour- moly – Metal zonation visible at deposit scale

SLIDE 35

Salt River Deposit Salt River Deposit Mean World Mean World “ “Felsic Felsic” ” VMS Deposits VMS Deposits Areachap Areachap-

• Prieska/Copperton Deposits

Prieska/Copperton Deposits Aggeneys Aggeneys-

• Gamsberg Deposits

Gamsberg Deposits

Mean Canadian VMS: 7.3 Mt @ 4.12% Zn, 0.70% Cu, 1.00% Pb, 37 g/t Ag & 0.88 g/t Au (Galley et al., 2005) World “Felsic” VMS deposits : 7.1 Mt @ 2.70% Zn, 0.62% Cu, 1.09% Pb, 39 g/t Ag & 0.59 g/t Au (Franklin, 2005)

Comparison with other VMS Deposits

0.1 1.0 10 100 0.01 0.1 1.0 10 100 1000

Tonnage (Mt) Cu+Zn+Pb (%) Canadian VMS deposits 1 M t 1 M t . 1 M t . 1 M t

SR HG

0.1 1.0 10 100

Zn+Pb (%)

0.1 1.0 10 100 1000

Tonnage (Mt) 1 Mt 10 Mt 0.1 Mt IPB deposits Bathurst deposits Mt Read deposits Kuroko deposits

SR HG

Modified after Galley et al. (2005) Modified after Goodfellow (2003)

SLIDE 36

Cu Zn Pb SEDEX deposits VMS deposits

Deposit Classification

Mafic Mafic-

• associated

associated Felsic Felsic-

• associated

associated Salt River Deposit Salt River Deposit Salt River Salt River-

• type Prospects

type Prospects Areachap Areachap-

• Prieska/Copperton Deposits

Prieska/Copperton Deposits Aggeneys Aggeneys-

• Gamsberg Deposits

Gamsberg Deposits

Modified after Slack (1993) Modified after Franklin (1981)

Cu Zn Pb Zn-Cu Zn-Pb-Cu Pb-Zn SEDEX deposits VMS deposits

SLIDE 37

Summary

• Salt River deposit displays numerous similarities in

common with:

– Kuroko-type deposits (Sawkins, 1976) – Zn-Pb-Cu group deposits (Franklin et al., 1981; Franklin, 1993) – Volcanic-Sediment-hosted Massive sulphides deposits (Goodfellow and McCutheon, 2003) – Siliciclastic-felsic deposits (Franklin et al., 2005; Galley et al., 2005) SEDEX MVT VHMS

(Cyprus)

Irish Aggeneys- Gamsberg Salt River Prieska

SLIDE 38

Looking Forward

• Delineation of the high-grade “shoot” or zone

– Ground and/or downhole geophysical surveys – Infill drilling

• Localized detailed surface mapping
• Continued revision of the stratigraphic column

and lithotypes

– Mineralogical, petrographic, geochemical and geochronologic analyses

• Continued analyses of the sulphides horizons

– Mineralogical, petrographic, geochemical (whole rock and mineral) and isotope analyses

• Characterization and definition of alteration

types and zones