Marmot Ridge Copper-Gold Project

Summary

Exploration by KSO at Marmot Ridge has resolved widespread alteration and associated copper (Cu), molybdenum (Mo) and gold (Au) mineralisation, into three coalescing systems:

• Volcanic-hosted Cu mineralisation
• Porphyry-hosted Mo ± Cu mineralisation
• Intrusive-related Au mineralisation

Ongoing exploration by KSO is focusing on the gold and copper mineralisation.

Geological Overview

The Marmot Ridge mineralisation was discovered by KSO in the course of regional exploration for large-scale bulk-mineable Cu ± Au deposits. Several such discoveries have been made in recent years on either side of the Inner Mongolia – Mongolia border.  The most famous is the giant Oyu Tolgoi deposit of Ivanhoe Mines Ltd.
Favourable parameters behind KSO’s focus on Marmot Ridge included:

• Its Palaeozoic arc tectonic position
• Presence of a calc-alkaline volcano-intrusive complex
• Widespread hydrothermal alteration
• Widespread Cu ± Mo ± Au geochemical anomalies
• Multiple intrusive phases including high-level porphyries
• Local fracturing, brecciation, quartz stockwork veining; quartz-hematite-magnetite zones and gossans

The project is centred on a long low ridge (Marmot Ridge) and consists of a > 6sq km zone of persistent Cu ± Mo ± Au anomalies associated with widespread propylitic alteration. Host rocks over the bulk of the ridge are Palaeozoic basic to intermediate volcanic flows and fragmentals intruded by high level dioritic stocks. Cu mineralisation is widespread in these rocks. On the northern flank of the ridge a syeno-granite stock with a late porphyry stage cuts the volcanics and hosts the Mo ± Cu mineralisation. Au mineralisation is associated with the margins of a younger granite porphyry stock that cuts both the syeno-granite and the volcanic rocks. This complex sequence has been strongly faulted along east-west, west-northwest and northeast trends.

Ongoing work by KSO is aimed at discovery of large-scale bulk-mineable zones of Cu and/or Au mineralisation associated with the granitic and/or dioritic porphyry stocks intruding the volcanic sequence.  

KSO Exploration

Work undertaken at Marmot Ridge to date includes:

• Geological mapping to establish the geological setting and define the surface extent of the alteration/mineralisation system(s);
• Satellite imagery analysis to assist with mapping and structural interpretation;
• Surface rock-chip, soil and lag sampling to investigate surface geochemical signatures of underlying mineralisation;
• Trenching for better surface level geological exposure;
• Ground magnetic and IP surveys to assist with sub-surface geological interpretation;
• 41 diamond drill-holes for 10,700m to establish the third dimension geology and geochemistry of the alteration system and size and grade parameters around mineralisation centres;
• 7 RC drill-holes for 1,191m to investigate Au mineralisation along the southern edge of a granite porphyry plug.

Of the 41 diamond drill-holes, 13 have been directed toward the Mo mineralisation on the northern flank of the ridge and 28 toward the Cu mineralisation.   The Mo drilling resulted in the discovery of a porphyry Mo deposit but grade indications are sub-economic.  The Cu mineralisation drilling has encountered numerous zones of strongly anomalous Cu but has not yet established the continuity necessary for a commercial deposit.  Exploration remains ongoing.
The 7 RC drill-holes established the widespread presence of anomalous Au values but failed to intersect potentially economic mineralisation.  Further exploration is under consideration.