Smokebush Project

Location & Access

The Smokebush Project (100% TMX) Area is located approximately 85 kilometres east northeast of the Perenjori township and 65 kilometres west of Paynes Find within the Yalgoo Mineral Field.

The project is contained within four contiguous Prospecting Licenses (P59/2125, P59/2126, P59/2127 & P59/2128) and one Exploration Licence (E59/2234) enclosing a total area of approximately 1,254 hectares (Figure 1). Additional areas have also been pegged and granted, and are 100% owned.

The tenements can be accessed via the unsealed Perenjori - Warriedar Road, and thence via extensive historical exploration grid lines, station tracks and fences lines. 

Historic Data Review

The data review has identified extensive untested surface gold geochemical anomalies as well as highlighting significant RC and RAB gold drilling intersections from sparse first pass drilling.

The best historical results include:

Monza:

• 2m @ 11.3g/t Au from 70m (MMRC162 - RC)
• 2m @ 9.2g/t Au from 24m (MMRC154 - RC)

Hurley & T17:

• 10m @ 1.4g/t Au from 15m (MM084 - RAB)
• 2m @ 2.5g/t Au from 51m (MMRC074 - RC)

Wildflower:

• 15m @ 1.4g/t Au from 10m (MM110 - RAB)

The historic drilling is considered sparse and requires follow up exploration activities to property test these significant results.  Terrain is now planning a site visit to gain a better understanding of the possible controls of mineralisation before designing the next stage of exploration activities.

Figure 1: Smokebush Project Location (Tenements outlines in Red)

Figure 1a: Smokebush Project showing 100% owned & 80% JV Tenements

Figure 2: Interpreted Geology Mt Mulgine with the Smokebush tenements in blue outlines

Geochemical Targets

Substantial historical surface geochemical sampling programs have been conducted across the area of the tenements (Figure 4). The majority of geochemical data generated during the historic gold exploration programs consistently analysed gold, arsenic and copper (Figures 5, to 11). Analysis for tungsten and its stablemate, molybdenum, were less frequent (Figure 8), and the appearance of analysis for those particular refractory elements seems to have been a function of trends in the tungsten market.

The historic publicly open file surface geochemical gold and chalcophile assays (As, Cu) were imported and gridded using Mapinfo (Inverse Distance Squared interpolation) to generate geochemical images for gold, arsenic and copper (Figure 9 to 11). Rock chip samples were also included in this review.

The historical gold exploration targets at T13, Monza, Hurley, Wildflower and T16 are defined by elevated gold soil geochemistry >19ppb (0.019 ppm). Elevated arsenic >20ppm is coincident with all of the gold anomalies, however the elevated arsenic geochemistry on the western part of E59/2234 is pervasive and a broad zone of +80ppm arsenic in that area seems to be associated with a major structural contact between granite and greenstone (Figure 2 & 10).

Figure 4: Thematic map showing historical surface geochemical samples

Figure 5: Thematic map of surface gold geochemistry

Figure 6: Thematic map of surface arsenic geochemistry

Figure 7: Thematic map of surface copper geochemistry

Figure 8: Thematic map of surface tungsten geochemistry

Figure 9: Surface geochemical image for gold and target areas

Figure 10: Two Surface geochemical image for arsenic

Figure 11: Surface geochemical image for copper

Review of Historic Drilling Data

A compilation of all open file historical drilling was compiled as part of the project due diligence.  This was conducted over the entire project area.  To date drilling has focussed mainly on the six prospect area’s depicted in Figure 9. Significant gold interceptions >0.5 ppm were calculated and tabulated (Tables 1 to 4).

Monza & T13 Targets

The Monza and T13 targets occur within a 750m x 500m gold soil geochemical anomaly >19 ppb in the southwestern corner of P59/2128 (Figure 12). A “bullseye” of >2 g/t Au on the geochemical image is due to significant rock chip surface samples (peaking at 10.37g/t Au). The soil anomalies have been drill tested by 12 angled RC drill holes (drilled towards the west and Southwest).

Terrain’s due diligence review of historic data at the Monza target has identified the possible narrow high grade plunging mineralised zone that is open to the north under the existing drilling.  Significant intercepts include 2m @ 11.3g/t Au from 70m in hole MMRC162 and 2m @ 9.2g/t Au from 24m in hole MMRC154 (Table 1).  Further RC drilling is required to confirm geometry of this high-grade plunging zone and test the potential down plunge potential to the north.

Hole ID	Type	TD (m)	Easting (MGA94Z50)	Northing (MGA94Z50)	RL (m)	Dip (°)	Azimuth (°)	From (m)	To (m)	Interval (m)	Au (g/t)
MMRC032	RC	96	500191	6773609	386	-60	270	41	42	1	2.54
								75	76	1	0.75
MMRC034	RC	120	500220	6773558	383	-60	270	3	6	3	0.88
MMRC036	RC	100	500180	6773659	388	-60	270	88	89	1	1.36
MMRC070	RC	66	500528	6773642	381	-60	250	29	30	1	0.60
								36	39	3	0.55
MMRC154	RC	132	500551	6773598	379	-60	250	24	26	2	9.20
MMRC155	RC	120	500575	6773605	379	-60	250	69	71	2	0.70
MMRC157	RC	120	500536	6773698	381	-60	250	62	65	3	1.22
MMRC162	RC	132	500551	6773650	381	-60	250	63	65	2	4.21
								70	72	2	11.34
								80	83	3	0.65
								108	110	2	0.58
MMRC235	RC	120	500515	6773693	382	-60	250	30	44	14	0.69
MMRC238	RC	132	500569	6773656	381	-60	250	101	103	2	2.71

 

Table 1: Monza & T13 Summary of significant gold intercepts (>0.5g/t Au)

Figure 12: Monza and T13 target area drill hole location and soil gold geochemistry

Hurley & T17 Targets

The Hurley and T17 Targets occur on the western part of P59/2126 (Figure 13), within a broad zone of elevated arsenic in soil (>20ppm). The Hurley target is defined by a 250 m x 250 m gold soil anomaly (>19 ppb) that peaks at 1.33g/t Au. T17 does not express any surface gold anomalism and was targeted based on a geophysical structural interpretation of the area. A total of 5 angled RAB and 14 angled RC holes (drilled towards the west and northwest) have been completed over these targets. Significant interceptions >0.5g/t Au include 5m @ 6.1g/t Au from 55m in hole MMRC004 and 2m @ 2.5g/t Au from 51m in hole MMRC074 (Table 2).

The due diligence data review has highlighted questions around the historic drilling drill orientation and collar locations that need to be field examined prior to any drill testing.

Hole ID	Type	TD (m)	Easting (MGA94Z50)	Northing (MGA94Z50)	RL (m)	Dip (°)	Azimuth (°)	From (m)	To (m)	Interval (m)	Au (g/t)
MM084	RAB	40	501690	6773250	362	-60	290	15	25	10	1.40
MMRC004	RC	147	501727	6773268	361	-60	270	55	60	5	6.14
MMRC048	RC	138	501770	6773228	359	-60		43	44	1	0.50 (0.47)
								116	117	1	0.72
MMRC050	RC	150	501653	6773228	360	-60	328	32	33	1	0.78
MMRC074	RC	90	501728	6772650	369	-60	324	51	53	2	2.47

 

Table 2: Hurley & T17 summary of significant gold intercepts (>0.5g/t Au)

Figure 13: Monza and T13 target area drill hole location and soil gold geochemistry

T16 Target

The T16 target is defined by a 750m x 500m zone of anomalous (>19ppb Au) gold in soil (peaking 280 ppb Au) located in the central part of tenement (E59/2234) (Figure 14). T16 has been tested by five angled RC holes (drilled towards the north), four of which have returned significant gold values.

Significant results >0.5g/t Au include 1m @ 1.4g/t Au from 97 m in hole MMRC044 and 2m @ 0.83g/t Au from 86m (Table 3).  At a lower cut-off grade (>0.1g/t Au) the T16 target drilling highlights some wide zones of lower gold anomalism (13m @ 0.39g/t Au from 84m in hole MMRC123 and 16m @ 0.29g/t Au from 94m in hole MMRC044) that suggest that the current drilling may be on the edge of a wider zone of significant mineralisation.  Drilling along strike of these wider zones of mineralisation is being planned. 

Hole ID	Type	TD (m)	Easting (MGA94Z50)	Northing (MGA94Z50)	RL (m)	Dip (°)	Azimuth (°)	From (m)	To (m)	Interval (m)	Au (g/t)
MMRC043	RC	102	497742	6768320	352	-60	350	70	71	1	0.66
MMRC044	RC	138	497754	6768200	353	-60	350	20	21	1	0.53
								97	98	1	1.40
								106	107	1	0.53
MMRC045	RC	95	497781	6768084	349	-60	350	84	85	1	0.50
MMRC123	RC	140	497881	6768102	349	-60	350	86	88	2	0.83

Table 3: T16 summary of significant gold intercepts >0.5g/t Au

Figure 14: T16 target drill hole location and gold geochemistry

Wildflower Target

Wildflower comprises a 1.0 km x 500 m gold in soil anomaly (>19ppb Au) located in the north-eastern part of Butler Tenement (E45/2234) (Figure 15). The target has had limited drilling completed to date with 35 RAB holes (mostly less than 5m depth) and one angled RC hole (drilled towards the west) completed. Significant results (>0.5g/t Au) include 5m @ 1.0g/t from 100m in hole MMRC001 and 15m @ 1.49g/t from 10 m in hole MM110 (Table 4). Those results are based on five metre composite samples; the author was unable to locate any data on re-splits of those intervals to provide better resolution. 

The current level of drilling was completed on 270m line spacing, which is considered to be wide spaced and not adequately tested the widespread gold anomaly (peaking at 226 ppb Au).  Given that the above-mentioned gold anomalism intersected in the limited drilling is open at depth and along strike further drilling is required to delineate the extents to this gold mineralisation.

Hole ID	Type	TD (m)	Easting (MGA94Z50)	Northing (MGA94Z50)	RL (m)	Dip (°)	Azimuth (°)	From (m)	To (m)	Interval (m)	Au (g/t)
MGRB428	RAB	4	499539	6769474	406	-90		0	4	4	0.43
MGRB430	RAB	2	499639	6769470	401	-90		0	2	2	0.77
MGRB474	RAB	30	499446	6769393	370	-60	360	28	30	2	1.09
MM110	RAB	40	499416	6769394	370	-60	270	10	25	15	1.49
MMRC001	RC	141	499465	6769395	370	-60	270	100	105	5	1.03

Table 4: Wildflower summary of significant gold intercepts >0.5g/t Au

Figure 15: Wildflower target drill hole location and gold geochemistry

Conclusions & Recommendations

A review of the publicly available open-file data on the Smokebush Project tenement package identified exploration targets that have not adequately been followed up.  Historic exploration geochemical surface sampling programs has defined a number of gold and chalcophile soil anomalies within the area of the tenement package that have not been either drill tested or the limited drilling that has been conducted is considered still open. Drilling by previous operators, including some RC drilling conducted as recently as 2014, returned significant gold intersections >0.5g/t Au from all of those geochemical anomalies. There are further well define gold and arsenic surface soil anomalies that have yet to been drill tested.  This provides Terrain an opportunity to properly test these anomalous soil anomalies and follow up on already identified gold mineralisation in historic drilling.  A structural geological investigation should be prioritised, to develop an exploration model and a program of works filed to enable on-going drill testing of the multiple geochemical targets.

Of the limited amount of drilling completed on the above-mentioned exploration targets a field reconnaissance trip is planned in the first quarter of 2020 to determine if the historic drilling orientation is optimal to the underlying geology and surface footprint of anomalism.  This trip will also comprise historic drill hole collar position verification and mapping of any areas of subcropping mineralisation.  Further soil sampling over the south western corner of tenement E59/2234 is planned over an area that has prospective aeromagnetic features that has no historic soil samples completed.  This is considered to be high priority as this will generate further surface anomalies for future drill testing. 

Several gold open pit mines have been developed on the western parts of the Mt Mulgine Anticline, however the eastern parts, corresponding with the Smokebush Project tenement package, are relatively under-explored.