Hylea Cobalt Project

Project Overview

The Hylea Cobalt Project (Hylea Project or the Project) in the Fifield District of NSW represents a significant cobalt, platinum, nickel and scandium exploration target in both scale and grade potential, as demonstrated by the Company’s maiden drilling program conducted in the first half of 2018.

The  Fifield District is Australia’s premier cobalt address with CleanTeQ, Australian Mines and Platina Resources all with a JORC compliant Co-Sc resource.

The Project consists of two exploration licences, Hylea EL8520 and Bulbodney EL8641 covering a combined area of 197km2.  The Company has also applied for a third exploration licence, ELA5689.

Previous Exploration

Early exploration consisted of soil sampling and induced polarisation (“IP”) surveying carried out by Lamadec Exploration in the late 60’s and early 70’s. Later work by PlatSearch NL focussed on platinum mineralisation.

Platsearch and others targeted platinum mineralisation – holes were generally assayed for Pt, Pd, Ni and Cr, with only limited assaying for Co and no assaying for Sc.

The next stage of exploration was by Black Range Minerals (who held the area from 1999 to 2003), with 15 RC holes for 609m being completed at Tiger’s Creek.

This was followed by Rimfire Pacific Mining (ASX: RIM), who held the ground from 2004 to 2014 where the primary exploration target was platinum.

Project Geology

Hylea is located over units of the western side of the Lachlan Orogen, one of a number of orogens in Eastern Australia, the Project geology includes late stage (Stage 4), post orogenic zoned Alaskan-Urals style intrusives intruding into deformed early Early Ordovician sediments of the Girilambone Group with some laterite development.

The Lachlan Orogen is host to a number of mineralisation styles and ages; an important group includes porphyry Cu-Au and related mineralisation associated with Ordovician to Early Silurian magmatic arc units of the Macquarie Arc.

A number of Alaskan-Ural intrusive centres have been recognised, including Tout, Owendale, Hylea, Bulbodney and Nyngan, which occur along a NNW trending line.

These host the Ni-Co-PGE-Sc bearing laterites, formed by the Tertiary weathering of the more mafic phases, including dunites and pyroxenites; as mentioned previously notable examples are those held by CleanTeq, Australian Mines and Platina in the Fifield district and Scandium Minerals near Nyngan; they may also be prospective for intrusive related Cu (-Ni-Co-PGE) sulphide mineralisation.

The Hylea Intrusive covers an area of some 25km2 and is similar in scale and geology to the other “Fifield” Alaskan-Ural complexes in the region, including Tout and Owendale; significant areas of the Project are under a shallow veneer of Jurassic to recent cover, thus masking the underlying prospective geology.

The Hylea Intrusive has been a number of phases of work since the 1970’s, however this has not covered the whole complex, and as well assaying of drill samples has been inconsistent which highlight the general paucity of drilling; as such the intrusive is considered under explored.

Current Exploration

Since acquiring the Hylea project, the Company has been busy planning and carrying out an aggressive exploration program.  Highlights of work undertaken to date are:

  • Completion of the maiden 54 hole drill program at the Tigers Creek prospect for 3,621m.
  • A detailed tenement wide airborne aeromagnetic and radiometric survey
  • Regional soil sampling

The results from the maiden drill program were outstanding.  The 3 main objectives of the program were all achieved with outstanding results:

  • To confirm the thickness, tenor and location of results reported by previous explorers;
  • To expand out from currently identified cobalt mineralisation into areas where laterite has been drilled but not assayed for cobalt; and
  • To undertake sample analysis using technology which has advanced significantly since the historical drilling was completed.

Tiger’s Creek is located on the eastern edge of the zoned 8km x 3.5km Hylea Ultramafic Intrusive Complex.  This is an intrusive complex with similar source geology and laterite development to the nearby Sunrise Project of CleanTeQ Holdings (ASX: CLQ), Australian Mines’ (ASX: AUZ) Flemington Project and Platina Resources’ (ASX: PGM) Owendale Project.

The maiden drilling program intersected a well-developed, at or near surface laterite and in-situ clay profile developed over ultramafic rock types including dunites, pyroxentites and peridotites in 48 out of the 54 holes.  Assay results have confirmed high tenor Cobalt, Scandium, Platinum and Nickel within the laterite profile, which presently remains open in multiple directions.  The scale and scope for further extensions is compelling.