Elaine
On 25 August 2009, CYU entered into a Farm-in and Joint Venture Agreement with Goldsearch Limited (GSE) to explore their Mary Kathleen Project (later renamed Mary Kathleen Joint Venture Project) comprising the three granted EPMs 14019, 14022 and 15257 covering an area considered prospective for copper, gold, uranium and rare earth elements (REE) mineralisation within the Mount Isa Inlier of northwest Queensland. On the 9 June 2011 CYU advised GSE that it had met all its expenditure commitments of A$1.5M to earn a 70% equity. A 70:30 joint venture between CYU and GSE was then incorporated to continue exploration.
By the end of September 2012, the Company had established an updated Inferred JORC resource of 27.7 million tonnes with a contained metal content of 147,000 tonnes of copper and 75,000 ounces of gold at the Elaine prospect.
Exploration activities for the period of the report include: prospect scale geologic mapping at Elaine; drilling at Elaine with associated petrology, mineralization age dating and paragenesis studies and preliminary metallurgical testwork.
To date CYU has drilled a total of 13089.6m in 33 diamond core holes and 1 percussion hole over six drill programs hole from 2009 to August 2013.
The Phase VII program was designed to extend the resource of Elaine at depth and along strike. Models of the Elaine copper-gold resource, aeromagnetics, EH4 geophysics, and copper-gold soil domains, were the most important targeting parameter for the holes.
MKED036 (see figure below), a vertical diamond drill hole, was designed to test the main mineralised zone of the Elaine copper-gold resource to 800 metres. Besides confirming 1.2 kilometres of resistivity geophysical anomalies defined by the EH4 program, MKED036 was utilised for metallurgical test work to increase confidence and review the economics of the deposit.
Assays for MKED036 returned significant copper mineralisation highlighted by 49m @ 0.80% copper and 0.06g/t gold from 231 metres including 22m @ 1.24% copper and 0.10g/t gold from 232 metres. This intersection is contained in a broad sulphide (pyrrhotite + chalcopyrite +/- pyrite) mineralised zone of 167m @0.50% copper and 0.05g/t gold from 231 metres that is being used for metallurgical test work. Assays returned from below the 500m resource base were highlighted by a narrow intersection of mineralisation. Surveys from MKED036 indicate a slight lift of the drill hole which appears to have resulted withMKED036 drilling along the margin of the EH4 geophysical anomaly
In addition, MKED036 also intersected 6m @ 207ppm uranium oxide, 813ppm thorium oxide and 4,938ppm total rare earth oxides from 638 metres including 3m @ 366ppm uranium oxide, 1,472ppm thorium oxide and 7,185ppm total rare earth oxides from 640 metres and 10m @ 107ppm uranium oxide, 330ppm thorium oxide and 2,490ppm total rare earth oxides from 712 metres including 2m @ 371ppm uranium oxide, 1,132ppm thorium oxide and 6,760ppm total rare earth oxides from 717 metres.
CYU has undertaken metallurgical scoping test work studies on drill core from MKED036 to measure copper and gold recovery rates within the previously announced 27.7mt Elaine copper-gold JORC inferred resource (Elaine Inferred Resource). A zone of high grade gold and copper mineralisation was also selected from MKED023.
CYU undertook the preliminary Elaine metallurgical scoping test work on limited drill core. The scoping test work was designed to provide a preliminary indication of the characteristics and the amenability of the mineralisation to conventional copper flotation techniques.
Three zones of typical mineralisation were selected by CYU from MKED036 characterised by high grade copper mineralisation and low-moderate grade mineralisation. Check assaying of zones sampled confirmed the significant sulphide mineralisation zone identified and targeted for test work sampling.
Final results were returned from ALS Metallurgy lab (Adelaide) at the end of March 2013 and were then reviewed by consulting firm GR Engineering Services Limited (ASX:GNG) (GRES).
The conclusions of GRES were as follows:
Mt Frosty (Blue Caesar)
CYU continues to develop its exploration model to assist in identifying the source of mineralisation in the vicinity of the 12km long Mary Kathleen Shear Zone. Starting with the 27.7Mt Elaine copper-gold JORC inferred resource, CYU is seeking to identify and develop commercial copper and gold resources within the Mary Kathleen Joint Venture and the Mt Frosty Joint Venture areas.
During 2013 CYU conducted two exploration drilling programs (Phases 1 and 2) at the Blue Caesar project, approximately 400m north-west of the Elaine project area (see figure below).
Final assay results have been returned for each of the eight diamond drillholes in this program, highlights of which were as follows:
MKBC002: 79m @ 0.68% Cu from 20m including:
MKBC003: 10m @ 1.13% Cu from 36m including:
MKBC004: 40m @ 0.66% Cu from 34m including:
MKBC005: 35m @ 0.77% Cu from 26m
MKBC006: 19m @ 0.62% Cu from 29m
Another feature of the exploration program currently being conducted by CYU is an EH4 geophysical survey targeting the Mary Kathleen Shear Zone north of the Blue Caesar prospect. The EH4 technology produces high-resolution 2D images of geological structures by detecting and mapping variations in subsurface conductivity/resistivity to depths of up to 1.2kms below the land surface. Yunnan Copper Mineral Resources Exploration and Development Co. Ltd. (YEX) utilises the EH4 technology extensively in China, but has recently been engaged by CYU to conduct surveys as part of the Elaine/Blue Caesar exploration program. It is intended that this survey will better enable CYU to establish future drillhole target locations along the Mary Kathleen Shear Zone.
