Australian Gold and Copper Limited’s Cargelligo Gold Project

Drill Ready Cobar-Style Gold and Polymetallic Targets in Southern Cobar Basin

Background

The Cargelligo project consists of an exploration licence covering 227km2 (EL8968 ‘Cargelligo’) and is located 15km west of the town of Lake Cargelligo in NSW. The Project comprises multiple drill ready Cobar-style gold-polymetallic prospects (Au-Ag-Cu-Zn-Pb) within a 15km zone along strike from the Cobar Mining District in the southern Cobar Basin.

The drill ready prospects are characterised by coincident soil geochemistry and EM conductors identified by a recent government airborne EM Survey (Geological Survey of NSW) and untested ground EM plates, also with coincident IP prospects, drill intersections and anomalous shallow drilling geochemistry.

The drill ready Mount Boorithumble and Achilles 3 prospects t are located along strike from and considered exploration lookalikes of Aurelia Metals’ (ASX:AMI) Hera Deposit and the emerging Federation Discovery.

Geological Setting

The Cargelligo Project is hosted within the prospective Rast Trough of the Cobar Basin in the Central Lachlan Fold Belt.

The Achilles Shear is a 14km long north-south striking structure on the western side of the tenement within which the rocks are known to be mineralised and intensely altered. It is interpreted to represent the along strike continuation of the Rookery Fault system in the Cobar-Peak area being an important feature controlling mineralisation of the Cobar gold-polymetallic deposits (e.g. Hera, Peak Mines).

Previous Exploration

Geochemical surveying across the tenement in the 1970s defined broad base metal anomalism. In 1979, EZ Ltd at Mt Boorithumble drilled a 240 hole, RAB program, which defined a 2km long base metal anomalous zone with max values reaching 2400ppm Pb, 380ppm Cu, 780ppm Zn and 150ppm As in separate samples.

The RAB anomalies were drill tested by EZ with a diamond and two percussion holes in 1981 and 1982. Hole Bo-1 intercepted sheared felsic volcanics with 45m of sulphides alteration including 8m of 5-15% sulphides with encouraging gold, silver and base-metal mineralisation in the diamond hole. Best result was 3m at 0.5g/t Au, 150g/t Ag, 2% Pb, 2% Zn, 1.2% Cu from 114m within 9m at 0.5g/t Au and anomalous base metals. Mineralisation was never followed up and is open in every direction.

In the late 1990s Santa Fe Mining Ltd conducted regional BLEG, stream sediment, rock chip and roadside air-core sampling programmes. Western Plains Gold conducted regional air-core drilling across the Achilles Shear zone with maximum assays 0.15ppm Au, 80ppm Cu, 248ppm Pb, 763ppm Zn and 42ppm As, and were highly encouraged by the width, intensity and similarities to the Cobar Peak trend.

In 2012, Thomson resources aircore drilled reconnaissance east-west lines at both Achilles 3 and Mt Boorithumble. From eleven holes drilled at Achilles 3, seven holes returned over 500ppm to 3600ppm Pb over 4m samples. Mt Boorithumble aircore lines also returned anomalous base metals. A moving loop EM survey over both Achilles 3 and Mt Boorithumble produced four large, shallow, conductive EM plates but were never followed up with drilling.

Exploration Potential

The principal goal for the project is to define large tonnage shear hosted high-grade gold and polymetallic orebodies. The geological setting of the Achilles and Mt Boorithumble prospects is considered analogous to the Hera Deposit and the emerging Federation Discovery.

Achilles 2 Gold Copper Lead Zinc Prospect

Achilles 2 is characterised by a 1.6km long zone of intense quartz-sericite-pyrite alteration with strong anomalous base metals and arsenic in sheared and foliated dacitic tuff defined by shallow drilling.

PC1 and PC2 intersected quartz-rich tuffs and rhyolite. Supergene enrichment of Cu was intersected in PC2 which returned 18m @ 0.44% Cu (maximum of 0.88% Cu) from 30m, 14m @ 0.22% Pb from 16m in PC2 and was only assayed for Cu Pb and Zn.

Recent rock chip sampling (May 2020) by New South Resources of gossanous material at the Achilles 2 gravel quarry assayed 0.31% Pb, 0.15% Cu, 175ppm Bi, 143ppm Mo, 938ppm As, and 1.4ppm Ag.

Achilles 3 Gold Copper Lead Zinc Prospect

In 2012, an east-west line of air core drilling (10 holes, 139m) tested a 300m long soil anomaly (lead values to max 598ppm) was highly encouraging, intersecting strong lead, zinc, copper anomalism, with best results in ACHAC023 of 4m at 3,600 ppm (0.4%) Pb, 1090ppm Zn and 654ppm Cu from 4m. Average hole depth was only 12m and deeper testing is required to test the anomaly in fresh rock.

A moving loop EM survey (2011) defined two large EM plates on either side of the soil anomaly. The western plate is 300m long, coincident with a subtle mag high and dips east towards a large airborne EM (AEM) anomaly defined by a Geological Survey of NSW AEM survey flown in 2019. Achilles 3 represents a compelling drill ready Cobar-style gold-polymetallic area of interest.

Mt Boorithumble Gold Copper Lead Zinc Prospect

Mt Boorithumble is defined by a 2.4km long, base metal soil anomaly with folded and faulted sandstones and siltstones (Preston Formation) sediments juxtaposed against felsic volcanics (Ural Volcanics). Immediate drill prospects are defined by two untested ground EM plates with overlying anomalous RAB soil geochemistry. The largest EM plate is 300m in length and coincident with a subtle mag high interpreted to be a magnetite or pyrrhotite alteration halo. This EM plate lies on the western side of a small hill, immediately on the contact of the altered and sheared sediments and the volcanics and is along strike from anomalous RAB soils to 940ppm Pb and historic drillhole Bo-1 which intersected 3m @ 2% Pb, 2% Zn, 1.2% Cu, 150g/t Ag and 0.5g/t Au from 114m within a broader anomalous envelope.

The eastern EM plate is 100m in length and lies directly beneath a strong RAB soil anomaly and a recent rockchip of gossanous sheared siltstones with quartz veining returning 16g/t Ag and 0.22g/t Au, 0.23% Pb, 641ppm Cu and 2ppm Bi.

Regional

A 5km long, highly prospective regional prospect is the shear zone between Achilles 2 and Achilles 3. The shear zone is poorly exposed under shallow soil cover and returned anomalous Cu-Pb-Zn-As in intensely sheared volcanics in three 1km spaced aircore lines drilled in 2007 (Jones, 2007). This shear zone is considered a high priority for further exploration.