Multi-mineral explorer Rincon Resources Ltd (ASX: RCR) believes that drill core picked up from a maiden program of work at its West Arunta project in Western Australia indicates potential for a major iron oxide copper gold (IOCG) deposit.
The company finished up a two-hole drilling program at the Pokali prospect, with the second hole – drilled to 634 metres – intersecting multiple zones of moderate to strong magnetite alteration.
Within this, they found quartz and sulphide veining with copper sulphide and other minerals, including an array of chalcopyrite, bornite, chalcocite, native copper and rare visible gold.
Managing director, Gary Harvey said the results reflected Rincon’s earlier predictions for the Pokali prospect.
“Identification of magnetically altered core from hole 24WADD002 containing copper sulphide veinlets, native copper and visible gold confirms our long-standing belief in the highly anomalous historical copper, gold and related pathfinder element results from RC (reverse circulation) drilling and surface sampling at Pokali being related to a large IOCG mineral system,” he said.
“The preliminary observations from the diamond core also explains strong IP chargeability, gravity and magnetic anomalism at Pokali, providing a major leap forward in the understanding of Pokali for Rincon’s West Arunta Project, which also has strong potential for REE plus niobium mineralisation.
“This second deep diamond hole was aimed at testing geophysical anomalism and the geological host rocks and mineral potential in the main Pokali gravity and magnetic anomaly trend.”
He added that by looking at the drill core, it was possible to see how this prospect might host a significant IOCG deposit.
Rincon was trading at 10.5c at 11:12 AEST, a fall of 29.3 percent after spiking 88% last week to a 52-week peak of 14 cents ahead of today’s announcement.