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 focussing 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.

avourable 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.  

Work to date

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.

Of the 41 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 low grade porphyry Mo deposit.  Investigation of the Cu and Au mineralisation remains ongoing with priority being given to a recently identified and potentially large Au target.

New Gold target

Four drill holes around the margins of a 750m x 350m zone of granite porphyry outcrops have intersected encouraging Au mineralisation.  The zone trends northwest-southeast and may extend for up to 2km under sand cover.

The 4 holes have yielded 25 intercepts of better than 0.1 g/t Au (45% of 55 such intercepts encountered at Marmot). The assay intervals are all 2m or greater and occur within intercepts of low level Au ± Cu anomalism tens or scores of metres thick.  They tend to occur in particular in fractured volcanic and quartz diorite wall-rocks immediately peripheral to the granite porphyry intrusion.  Better assay intercepts include:

Selection of Au intercepts, Marmot Ridge Au zone

These intercepts define a target zone for follow-up drilling planned for the 2010 field season.

Metal zoning, Marmot Ridge

The granite porphyry represents a late phase of intrusive activity at Marmot Ridge and overprints the porphyry Mo mineralisation drill-tested by KSO.  Au values encountered elsewhere on the ridge may reflect the sub-surface presence of the same intrusive.