Mumbwa
Overview
The Mumbwa Joint Venture (“JV") Project is located in west central Zambia, approximately 200 km west of the Country’s capital, Lusaka. The Mumbwa tenement (LPL 374) area covers an area of approximately 1,000 km2, and is being explored with JV partner BHP Billiton (“BHPB”) for iron oxide copper-gold (“IOCG”) style mineralisation similar to Olympic Dam in South Australia and Ernest Henry in Queensland.
Within the Mumbwa tenement there are 3 large scale anomalies, the Kitumba, Mushingashi and Mutoya anomalies, that being targeted for further exploration. These anomalies were identified in through the Phase 1 Falcon ™ survey commissioned by Blackthorn Resources in 2004. The high-resolution gravity, magnetic and radiometric data provided by the Falcon ™ survey was interpreted using BHPB's propriety SolidEarth ™ software
At Kitumba, the Phase 2 drilling program completed 8 holes for a total 4,105.17 m of core which included a single discovery hole, S36-001. This drill hole intersected significant copper and gold mineralisation over a 655 m interval grading 0.46% Cu including:
• 317m @ 0.79% Cu,
• 18m @ 0.20g/t Au,
• 42m @ 2.01% Cu, including
• 4m @ 5.56% Cu.
As follow up to this significant mineralised drill intersection at Kitumba, Blackthorn Resources commenced the Phase 3 drilling program in 2008 which completed 8,000m of cored drilling from 18 holes. A total of 16 holes returned copper and/or gold mineralisation above the nominated 0.25 % Cu and 0.25 g/t Au cut-off grades.
In mid 2009, Blackthorn Resources commissioned consultants from the MSA Group to conduct a Mineral Resource Estimate for the Kitumba area based on results from previous drilling campaigns. The resource estimate study will be reported in accordance with guidelines of the 2004 JORC code.
|
Copper
cut-off
(%)
|
Resource
Tonnes
(Mt)
|
Average
Grade Cu
(%)
|
Average
Grade Au
(g/t)
|
Average
Grade Ag
(g/t)
|
Average
Grade U
(ppm)
|
|
0.0
|
571
|
0.34
|
0.06
|
1.45
|
44
|
|
0.2
|
345
|
0.47
|
0.06
|
1.38
|
45
|
|
0.5
|
87
|
0.94
|
0.05
|
1.27
|
37
|
|
1.0
|
22
|
1.73
|
0.05
|
1.20
|
36
|
Joint venture partners, BHPB are currently managing and funding the next Phase 3B drilling program which has completed drilling at Kitumba, and now focussing on the Mushingashi density anomaly. It is planned to complete approximately 15,000 m of drilling from the Phase 3B program which is expected to recommence in ealry 2010.
Mumbwa Joint Venture Agreement
Blackthorn Resources entered into a joint venture agreement with BHP Billiton (BHPB) in late 2004 enabling Blackthorn Resources to earn a 70% interest in the Mumbwa Project through funding exploration over a 4 year period. Blackthorn Resources fulfilled the requirements of the JV agreement upon completing the Phase 3 drilling program in 2008. Accordingly under the terms of the JV agreement, BHPB have the option to “claw back” up to 80% interest in the Mumbwa Project upon funding the next stages of exploration, concept and feasibility studies.
In 2009, BHPB elected to fund the next Phase 3B drilling program, and were able to “claw back” an additional 10% stake in the joint venture project by paying Blackthorn Resources a sum of $1.1M dollars. Blackthorn Resources currently holds a 60% vested interest in the Mumbwa JV Project following BHPB’s decision to progress with further exploration drilling throughout the year.