The Cup area has the potential to host a very large copper / base metal deposit. The Cup is host to Volcanogenic Massive Sulphide (VMS) mineralisation which occurs very close to the tenement boundary with tenement M57/633. Gateway has entered into an agreement whereby it can earn 70% of M57/633 (see ASX announcement 12 August, 2013). The horizons dip westward into the new Joint Venture tenement, suggesting that mineralisation may extend down-dip.
The mineralisation is interpreted as being hosted within an intermediate to felcis-volcano-sedimentary package. Lithogeochemical studies have indicated that sericitic to chloritic alteration is associated with the mineralisation. The interpreted volcano-sedimentary host sequence, alteration and apparent metal zonation are highly suggestive of typical VMS style mineralisation.
Much of the historical work completed by Gateway has focused on ‘The Cup’ horizon, however the Company believes there is an additional, more significant ‘horizon’ lying above The Cup which dips west into M57/633. This model is based on the exceptional gossan geochemisty which has been intersected along the tenement boundary, the recently completed MLTEM surveys, and the surrounding geology. The gossan, which is an iron-oxide rich ‘cap’ on top of a massive sulphide body, has returned Cu to 17,829ppm and Au to 4.73g/t. This level of copper and gold in a gossan is exceptionally high. Visible malachite, a copper carbonate, was also evident during historical drilling, which is a further sign of base metal fertility.
Furthermore, in what is an extremely encouraging sign, this new horizon, The Chalice, has very strong Pb results. Lead is one of the most important elements in the detection of VMS mineralisation. Pb to 1,484ppm has been intersected in gossan, which is an outstanding result.