Geophysics and Drilling Collaborations Gosse River Project Final report EL 24009 and EL 31467

Abstract

Red Metal Limited (Red Metal) is the owner and operator of Exploration Licences (ELs) 2009 and 31467, which form the company's Gosse River project. Red Metal was granted funding by the Northern Territory Government under the Geophysics and Drilling Collaborations Program in 2018 to drill test four high priority bulls-eye magnetic targets (Red 1, Red 4 South, Red 4 North and Red 5) within the project area. The original program comprised four percussion drill holes for a total of 900 metres. Due to poor results from the initial drill holes only two of the targets, Red 4 and Red 5, were tested. Three holes were drilled; hole TCRC01 (138 m) at Red 5, and holes TCRC02 and TCRC003 (both 150 m) at Red 4 for a total of 438 metres. The holes intersected, older variably strained biotite-rich granite intruded by younger sills and/or dykes of more massive, graphic textured alkali granite. The older granite is biotite-rich and includes large rafts or xenoliths of meta-psammite. Shears within the older granite form as coarser grained, stronger foliated, more biotite-rich zones. The younger granite has a graphic texture and is alkali in composition. It varies from alkali granite to quartz-syenite to syenite to a coarse-grained graphic textured muscovite pegmatite over small intervals. Biotite shears within the older granite are impacted by a late-stage, retrograde alteration associated with weak copper-bismuth mineralisation. The retrograde alteration is characterised by strong chlorite alteration associated with talc (or sericite), variable hematised (lipstick red) K-feldspar alteration, weak magnetite, pyrite and/or chalcopyrite mineralisation. Better copper mineralisation and visible chalcopyrite mineralisation appears to be associated with an elevated magnetite content. Traces of disseminated sulphides and magnetite within the late-stage alkali granite suggest a possible genetic link between the copper mineralisation and the alkali granite phase. Age dating is recommended. The association of copper with bismuth and chlorite-talc-magnetite alteration appears similar to that of copper and gold deposits in the historic Tennant Creek goldfield. The Gosse River magnetic targets Red 4 and Red 5 have been adequately tested and it is concluded that the magnetic anomalies are not associated with significant economic copper or gold mineralisation.