ML 22624 Oonagalabie Report on diamond drill hole SLX001

Abstract

ML 22624 'Oonagalabie' is held by Clarence River Finance Group Pty Ltd and operated by Silex Exploration Australia Pty Ltd under a joint venture agreement. The tenement is considered prospective for Broken Hill-style zinc (copper) and other massive sulphide and carbonate replacement deposits. Previous work programmes undertaken by Silex at Oonagalabie prospect include geological mapping, a pole-dipole IP survey and quarter-core sampling of Amoco holes ONT-79-1 and ONT-79-2. Following a successful collaborative funding application, a 500 m diamond hole (SLX001) was drilled at Oonagalabie into a depth-extensive IP chargeability response. Geotechnical and geological logging was undertaken on SLX001, and numerous structural measurements were undertaken on the almost fully oriented core. Selected geochemical sampling was also undertaken. In the uppermost 100 m of SLX001, several narrow sulphide zones were intersected, at high angles to the core axis and associated with probable anthophyllite alteration. These zones returned anomalous copper and zinc values. Based on downhole structural measurements, SLX001 may have drilled beneath a large anticlinorial structure. If mineralisation occurs as shoots within the fold axis zone the Silex hole has probably drilled beneath it. It is recommended that Silex design an RC percussion drilling programme, with sites on the hill top above SLX001 and directed beneath the hill into possible mineralised zones on the southeastern limb or the axial core of the interpreted fold.