Geopacific Resources (ASX:GPR)
Market cap: $23 million
Cash estimate: $2 million
Project: Kou Sa
Ownership: 100 percent
Project status: Exploration, resource in late 2015
- Geopacific Resources announced additional reverse circulation (RC) drilling results from its 100% owned Kou Sa project in Cambodia. The project was initially discovered in the 1960's by the BGRM (French Geological Survey) and was left abandoned since the Vietnam conflict. The Company acquired the project from a private Korean investor for an initial January 2015 payment of US$ 1.4 after the due diligence period (which included drilling) and subsequent US$14 payments over 18 months to July 2016.
- Highlights from the recent RC drilling includes 36 metres grading 15.71 g/t Au, 49.52 g/t Ag, 1.18% Cu and 0.34% Zn starting at a depth of 8 metres. An additional hole intersected 32 metres of 4.26 g/t Au, 20.81 g/t Ag, 1.25% Cu and 0.34% Zn from 4 metres depth. True widths of the zones vary due to the prosed multi-stage mineralization as noted below.
- The Company believes the high-grade mineralization may be related to rising fluids from a buried copper-gold porphyry body. As the fluids rise to surface, they may have been trapped by impermeable layers (silica alteration in the volcanic rocks) thus forming flat layers of copper rich material. As the pressure builds below the silicified barrier, cracks appear and gold rich fluids enter to close the fracture along the feeder system. Prospect 150 is typical of the sealed model with flat mineralized zones and later higher-grade gold mineralization. Prospect 160 to the south appears to be typical of narrow high-grade feeder structures without the flat lying mineralized zone beneath the impermeable seal.
- The Company has very effectively used surface IP to target the shallow mineralization and has recently completed a deep dipole-dipole IP geophysical survey to target depth extensions to the current mineralized zones as well as a possible porphyry at depth.
- A March 2015 metallurgical report predicts a clean concentrate with good recoveries up to 98.4% for Cu, 94.1% Au and 91.1% Ag.
Development history and key intervals: Discovered by BGRM (French government) in 1960′s. Abandoned during Vietnam war. Acquired from Korean investment group in March 2013.
Discovery hole prospect 150 (April 4, 2014): 3.9 metres @ 16.47 g/t Au, 4.95% Cu
Current holes (prospect 150): 36 metres @ 15.71 g/t Au, 49 g/t Ag, 1.18% Cu, 0.34% Zn; 32 metres @ 4.26 g/t Au, 20 g/t Ag, 1.25% Cu, 0.34% Zn