AGR hunts for gold along with vanadium

A MAJOR exploration drive by Australian Gold Resources Limited in the Murchison mineral field will not only focus on vanadium but also test the potential for gold and base metals mineralisation.

According to an AGR report, while the prime focus in the area

is to expand its vanadium resource, the potential for gold and/or copper-zinc and/or nickel-copper mineralisation will also be assessed.

During the year a substantial drilling programme concentrated on the Youanmi project located 120 kilometres east-south-east of Mt Magnet, covering the Youanmi intrusive complex which is con-sidered prospective for vanadium, copper, zinc and nickel sulphides.

The complex is considered stratigraphically equivalent to the adjacent Windimurra intrusive complex which hosts the vanadium pentoxide deposit currently under development by PMA Ltd and Glencore.

Exploration by AGR consisted of drill testing of the layered gabbro hosting the vanadium-rich titano-magnetite horizon and preliminary metallurgical test work.

Reverse circulation drilling has concentrated on the four-strike

kilometres of the northern zone where the magnetite-rich units are interpreted to be shallow dipping to the south at angles between 50° and 35°. The drill spacing is now 640 metres by 80m, with some 40m infill holes in areas of higher grade.

An inferred mineral resource of 136 million tonnes at a grade of 0.42 percent vanadium pentoxide has been estimated by polygonal section methods.

The recent drilling, along with geological mapping and detailed airborne magnetic surveying, has clarified the stratigraphy and identified the magnetite-rich zones which carry the highest grade of vanadium mineralisation.

The AGR report says grades and widths of vanadium mineralisation intersected at Youanmi are comparable to those reported from the adjacent Windimurra complex and suggests the economics of Youanmi would be similar to those of the Windimurra vanadium project.