Projects & Operations

CLARA HILLS – 80% FARM-IN - NICKEL SULPHIDE, COPPER AND PGES

On 22 September 2010, Proto Resources announced its agreement to earn an 80% interest in mining tenements E04/1533 (granted) and E04/2026 (in application) in the West Kimberley of Western Australia, named the Clara Hill Project. The Clara Hill project area includes a high-grade nickel, copper, platinum and palladium (“Ni-Cu-PGE”) gossan which has historically supported a small mining operation. The source of the high-grade Ni-Cu-PGE gossan is unknown and Proto is actively exploring for it. 

Exploration is set to begin with an advanced airborne survey giving detailed magnetic data on the area, followed by ground exploration including soil sampling and drilling.The acquisition agreement also provides Proto with an option to purchase the remaining 20% interest in the project. 

Exploration Target

The exploration target at Clara Hills is for a resource in the style of the Savannah Mine operated by Panoramic Resource Limited (ASX: PAN). Such an exploration target appears warranted based on the available evidence because the Gossan at Clara Hill exhibits a unique ‘signature’ of mineralisation which holds many parallels to the combination of minerals present at the Savannah Mine. 

Historical Mining and Exploration at Clara Hills

The Jack's Hill Copper Prospect was discovered within the Clara Hill tenements in 1902 and subsequently commenced operations as the Maura Reward Copper Mine. According to local information, Jack's Hill was subject to a campaign of small-scale exploitation in the late 1950’s or early 1960’s when several tonnes of gossan material with high grades of copper carbonate and oxide were mined from this prospect and transported to Derby for sale as fertilizer additive. Unfortunately, there is no formal geological record of this activity available through the Western Australian exploration reporting system.

Between 1964 and 1970 Pickands Mather drilled two holes in the prospect, which they had named as Limestone Springs. A significant intersection of Ni-Cu mineralisation was reported from the one drill hole (7.6m @ 0.39% Ni and 0.2% Cu) though it is unlikely that the main body of mineralisation was intersected. The Jack's Hill Prospect received no further attention until the present holders commenced works in 2007. Work-to-date has included rock chip sampling, costeaning, a short reverse circulation ("RC") scout drilling programme and a fixed loop electromagnetic survey ("FLTEM") over the immediate gossan outcrop.

The gossan is located at or about the hanging wall contact between mafic intrusive rocks and a footwall of mica schist. Field inspection identified that the rocks carrying the gossan are highly weathered and mineralised. In addition, partially oxidised remnants of pyrite, chalcopyrite and chalcocite were identified within the main gossan. Field work also located two other gossan locations that lie nearby to the northwest of the principal gossan at Jack’s Hill. The spatial distribution of gossan outcrop appears to align with a northwest oriented fault structure.

The past assay of 13 samples taken from the gossan exposed in costeans and undisturbed outcrop returned high tenor of mineralisation with an assay range as follows:

The RC scout drilling programme was undertaken from randomly spaced, unprepared drill sites and was successful in locating sub-surface mineralisation with sample assays returning results up to 3.7% Cu, 0.8% Ni, 29ppm Ag and 1.14ppm Au.

The results of the FLTEM survey indicated the existence of a weak to moderate transient electromagnetic response approximately 150m to the west of the old extractive workings at the Jack’s Hill Prospect, suggesting that the mineralisation below the prospect has been dislocated. A petrographic report of gossan samples taken from Jack’s Hill describes the limonite/goethite box work gossan as being after chalcopyrite with secondary pyrite after pyrrhotite and possible violarite after pentlandite. Further examination of targets associated with this dislocation will be included in future exploration.

  An aerial perspective of the Jack’s Prospect Gossan

Photographs of old workings at the Jack's Prospect Gossan exhibiting an abundance of visible chalcocite, pyrite and chalcopyrite in conjunction with intensive silification.