On June 28, 2010, the Company executed a Reconnaissance Permit (RP) on 3,504 square kilometres in Narsimhapur, Seoni and Hoshangabad Districts of Madhya Pradesh, a well mineralised state in central India. This RP is contiguous with and wrapped around the Company's Prospecting Licence (PL) application of 70 square km, which is in progress.
In 2007 the Company completed two scout drill holes into bedrock on the ground now covered by the PL application. The holes cut through 300m of alluvial overlying the bedrock.
The objective was to find the cause of a 50 square kilometre magnetic anomaly -- which is about the same size and amplitude as the magnetic anomaly over the equally deep Olympic Dam IOCG (iron oxide-copper-gold) deposit in South Australia, discovered by WMC and now mined by BHP Billiton for copper, gold, uranium and rare earth elements. Like Olympic Dam, the Gadarwara prospect lies in a major tectonic break.
The Company's Gadarwara drilling established some of the bedrock as ironstone containing magnetite, hematite and other iron oxides, sulfides and sulfates. At the time the Company dismissed the mineralogy as being part of a banded iron formation. That explained the magnetic anomaly, but was of no further economic interest.
Banded iron formation in drill core from DDH 1 -- Specular hematite (shiny metallic) and goethite (reddish brown) -- both iron oxides; chert and tuff (white), cavities are remants of oxidized iron sulfide minerals. Scale is 15 cm or 6 inches long. Core is NQWL diameter or about 2 inches.
Upon further investigation, however, there is a possibility that the mineral assemblage intersected could be an alteration halo near an IOCG deposit. The Company is currently undertaking petrographic and trace element studies to determine whether or not the mineralogy is a guide to a nearby IOCG deposit.
The reason for this is that IOCG deposits can be huge systems worth billions of dollars. Further work may be a long shot, but it appears worth pursuing. The Company's land position is large enough to cover the possibility of a large deposit. The Company intends to seek out a joint venture partner for any future drilling if it is warranted.
(updated July 5, 2010)