Silver Swan South Project (100% interest) 

Introduction

The Silver Swan South Project comprises of one granted exploration licence E27/545 and six granted prospecting licences, P27/2191 – 2196 covering an area of 47.2 km². The Project is along trend of the massive nickel sulphide Silver Swan Deposit (pre-mining ore reserve of 655 kt at 9.5% Nickel) and associated deposits (pre-mining resource of 10.4 Mt at 1.0% Nickel), and only 8 km northeast of the major Kanowna Belle Gold Mine (+5 Moz gold endowment). 

Activities during the September Quarter 2017

During the quarter Blackstone received assay results from the first phase of drilling at Silver Swan South Access limited the coverage of the initial drill program but still several significant gold and nickel results were achieved (See Table One for full set of results). This has allowed a more focused approach in the follow-up aircore program that has been designed and planned for completion in December 2017.

The best gold intersection from the first phase of drilling came from SNAC027 with 3 m @ 2.6g/t gold from 52 m to the end of hole within a broader intersection of 7 m @ 1.3g/t gold to the end of hole, sitting in weathered dacite. Drill hole SNAC033 also returned an interesting result with 1 m @ 0.21 g/t gold at the bottom of hole within pyritic dacite.

The best nickel intersection from the first phase of drilling came from SNAC015 with 4 m @ 0.5% nickel and 180 ppm copper from 68 metres and 1 m @ 0.3% nickel, 52 ppm copper and 36ppb platinum and palladium from the bottom of hole. Drill hole SNAC019 also returned an interesting result of 12 m @ 0.8% nickel and 143 ppm copper from 24 metres.

Blackstone’s initial drilling at Silver Swan South is targeting both gold hosted by structural targets along strike from the Kanowna Belle Gold Mine (endowment +5Moz Au), and nickel sulphide mineralisation associated with ultramafic units along strike from the Silver Swan and Black Swan Nickel Mines (endowment 166kt Ni metal).  The initial programs are designed to test for basement hosted mineralisation, using air core drilling, to improve definition of gold and base metal anomalism identified by previous reconnaissance style drilling.

This initial phase of drilling will focus on the following:

  • Further definition of gold targets associated with the interpreted northern extension of the Fitzroy Shear (controlling host structure at the Kanowna Belle Gold deposit) located 8 km along strike (Refer Figure One).
  • Infill historical, broad spaced, reconnaissance drilling which intersected up to 3.5g/t gold.
  • Target thickening of the ultramafic sequence considered highly prospective for nickel sulphides and located only 10km from the Silver Swan Nickel Mine (Refer Figure One).
  • Prioritise both gold and nickel targets for follow up reverse circulation (“RC”) drilling.

Blackstone’s initial phase of drilling at Silver Swan South has targeted both gold and sulphide nickel mineralization, associated with ultramafic units along strike from the Silver Swan and Black Swan Nickel Mines (Endowment 166kt Ni metal) and the Kanowna Belle Gold Mine (Endowment +5Moz Au). The programs also tested for basement hosted mineralization, using aircore drilling, to infill gold and base metal anomalism identified by previous reconnaissance style drilling.

Gold targets within the project area are associated with the interpreted northern extension of the Fitzroy Shear Zone, controlling structure for mineralization at Kanowna Belle. Previous vertical reconnaissance drilling has intersected up to 3 m @ 3.5 g/t gold and 4 m @ 1.3 g/t gold under transported lake clays. Blackstone’s drill program focused on further defining the gold target in anticipation of follow up RC drilling.

In addition to gold the Company’s initial drill programs will also target sulphide nickel mineralisation associated with the ultramafic unit. The ultramafic unit is part of a sequence of komatiites which already hosts both the Silver Swan and Black Swan Nickel deposits only 10 km to the north (Refer Figure One). This was further supported by rock samples taken during a recent geological mapping exercise with one sample (SOSN019A) containing disseminated sulphides, returning 0.1% Cu and 0.1% Ni.  Drilling focused on further defining the nickel sulphide target as well as providing access for a potential down hole EM surveys.

Figure One | Silver Swan South Bedrock Geology Plan

Table One | SNS Summary Drill Results – October 2017

Hole E_MGA51GDA94 N_MGA51GDA94 Azi_MGA Plunge EOH_m From m To m Interval m Au g/t Ni ppm Cu ppm Mineralisation
SNAC001 370197 6622600 0 -90 30 28 30 2 0.031 120 <50 31ppb Au in palaeochannel sands 20-24m, 31ppb from 28-30mEOH in weathered dacite
SNAC002 370099 6622600 0 -90 40 failed to reach basement 27ppb Au from 28-32m in clays at top of palaeochannel sands
SNAC003 369995 6622595 0 -90 54 failed to reach basement 14ppb Au from 32-36m in clays at top of palaeochannel sands
SNAC004 369898 6622601 0 -90 66 28 32 4 0.056 240 <50 56ppb Au from 28-32m in clays at top of palaeochannel sands, & 30ppb Au in clay beneath palaeochannel sands
SNAC005 369799 6622597 0 -90 73 28 32 4 0.177 210 <50 107ppb Au from 28-36m in clays at top of palaeochannel sands, 23ppb 52-56m within in situ clays?
SNAC006 369695 6622603 0 -90 34 failed to reach basement 8m at 53ppb Au from 28m to 34m EOH in paleochannel sands when but hit a qz ?boulder, redrilled as SNAC036
SNAC007 369598 6623031 0 -90 63 28 29 1 0.082 170 <50 82ppb Au from 28-33m in clays just above palaoechannel sands
SNAC007 57 61 4 0.026 <50 <50 26ppb from 57-61m at base of lower palaeochannel sands  and top of in situ clays, large shale and qz vein clasts in sand at 56m, terminated at 63m in clay with fresh shale and qzV gravels
SNAC008 369785 6623003 0 -90 12 failed to reach basement Hole terminated at 12m in clay due to rig malfunction
SNAC009 370195 6622904 0 -90 51 32 36 4 0.022 50 <50 22ppb Au from 32-36m at interface between hard plastic & in situ clay, blade refusal 51m in dacite
SNAC010 370001 6623010 0 -90 60 56 60 4 0.045 130 70 45ppb Au from 56-60mEOH at weathered basement-paleochannel interface, blade refusal 60m in dacitic tuff
SNAC011 369789 6623009 0 -90 62 60 62 2 0.025 120 <50 25ppb Au from 60-62mEOH at top of in situ clays, redrill of abandoned SNAC008
SNAC012 370100 6622600 0 -90 61 60 61 1 0.014 <50 <50 14ppb Au at EOH in weathered dacite

 

 

 

Hole E_MGA51GDA94 N_MGA51GDA94 Azi_MGA Plunge EOH_m From m To m Interval m Au g/t Ni ppm Cu ppm Mineralisation
SNAC013 370101 6622121 0 -90 69 44 69 25 0.001 4925 <50 0.56% Ni from 52-69mEOH in weathered ultramafic, As up to 570 ppm in overlying lake clays
SNAC014 370004 6622094 0 -90 52 failed to reach basement hole abandoned in clay at 52m
SNAC015 370005 6622092 0 -90 116 56 116 60 0.009 3269 119 peak 4m from 72m at 370ppm Cu & 4920ppm Ni in swelling clay after ultramafic
includes 100 108 8 0.047 3190 105 47ppb Au from 100-108m in swelling clay after ultramafic
SNAC016 370188 6620901 0 -90 6 NSI NSI NSI tuff basement at 6m
SNAC017 370097 6620902 0 -90 3 NSI NSI NSI mafic basement at 3m
SNAC018 370000 6620901 0 -90 32 0 32 32 0.011 2773 <50 ultramafic clays
SNAC019 369897 6620898 0 -90 54 12 48 36 0.01 5806 115 ultramafic clays
includes 20 44 24 0.001 6567 115 ultramafic clays
includes 28 36 8 <0.001 8195 155 ultramafic clays
and 44 48 4 0.076 3710 <50 ultramafic clays
SNAC020 369797 6620900 0 -90 63 NSI NSI NSI blade refusal in dacitic tuff
SNAC021 369697 6620906 0 -90 65 NSI NSI NSI blade refusal 65m in dacite
SNAC022 370099 6621298 0 -90 24 NSI NSI NSI blade refusal 24m in dacite
SNAC023 369999 6621306 0 -90 42 NSI NSI NSI blade refusal 42m in dacite
SNAC024 369900 6621306 0 -90 73 56 72 16 0.036 1825 <50 36ppb Au, 1825ppm Ni, 145ppm As, 1025ppm Cr from 56-72m in clay after ultramafic
includes 56 60 4 0.085 2640 <50
SNAC025 369786 6621300 0 -90 94 32 40 8 0.009 1765 200 several 4m zones to 57ppb Au between 36 & 84m in clays after mafic volcanic?, clays 32-40m 1765ppm Ni, 1300ppm Cr, 200ppm Cu & 60ppm As
SNAC025 44 48 4 0.057 430 90
SNAC026 369707 6621298 0 -90 62 56 62 6 0.026 60 <50 26ppb Au from 56-62mEOH in clay & weathered dacite at EOH

 

Hole E_MGA51GDA94 N_MGA51GDA94 Azi_MGA Plunge EOH_m From m To m Interval m Au g/t Ni ppm Cu ppm Mineralisation
SNAC027 369308 6620914 0 -90 55 48 55 7 1.26 <50 <50 7m at 1.3ppm Au from 58-55mEOH, includes 3m at 2.6ppm Au in weathered dacite at EOH
SNAC028 369714 6621701 0 -90 32 28 32 4 0.031 110 <50 31ppb at blade refusal in ferricrete layer
SNAC029 369807 6621699 0 -90 94 24 28 4 0.213 <50 <50 215ppb Au 24-28m at base of palaeochannel, blade refusal in shale at 94m
SNAC030 369900 6621699 0 -90 78 NSI NSI NSI end of hole in in situ clay
SNAC031 370001 6621703 0 -90 38 NSI NSI NSI end of hole in feldspar-rich dacite
SNAC032 370101 6621698 0 -90 9 NSI NSI NSI end of hole in dacite
SNAC033 369705 6622117 0 -90 65 64 65 1 0.216 50 <50 81ppb from 24-65m EOH, including 12m at 151ppb Au from 24m in palaeochannel clays, and 1m at 216ppb Au from 64m to EOH in pyritic dacite
SNAC034 369791 6622124 0 -90 70 60 64 4 0.011 100 <50 14ppb Au from 32-64m in palaeochannel clays & top of in situ clays, end of hole in sulphurous silicified volcanic with trace pyrrhotite
SNAC035 369899 6622119 0 -90 42 failed to reach basement few 4m zones to 14ppb Au in palaeochannel clays, hole failed to penetrate palaeochannel clays
SNAC036 369691 6622588 0 -90 72 47 72 25 0.035 <50 <50 35ppb Au from 47-72mEOH, including 4m at 119ppb from 47m at base of paleochannel sands & top of in situ clays, end of hole in dacite with trace disseminated pyrite
 

NSI – No significant intersection