Mt Gunson Project
The Mt Gunson Project is a farm-in and joint venture between Gindalbie Metals and Terrace Mining.
The Mt Gunson Project is centred approximately 35 km south-east of Woomera and 135 km north-west of Port Augusta in South Australia. The project currently covers 824 km2 in the Olympic Dam Copper Province, Australia’s most productive copper belt. The project is located 100 km south of BHP Billiton’s Olympic Dam copper-gold-uranium mine and 50 km west of OZ Minerals’ Carrapateena copper-gold project.
The project mining centre lies 10 km off the sealed Stuart Highway and is accessed by established unsealed roads. Established access to electrical grid power and scheme water is available in the area. The Adelaide to Perth/Darwin railway runs parallel to the Stuart Highway. Additionally, regular air services are available at Roxy Downs and Port Augusta, and a serviceable airstrip for light aircraft is located on site. Accommodation is available at Woomera.
The MG14 (1) and Windabout (2) copper-cobalt deposits at Mt Gunson, are hosted by flat-lying undeformed sedimentary rocks (surface proximity) of Late Proterozoic Age, deposited on the Stuart Shelf. These platform sediments are referred to as the ‘Cover Sequence’ and unconformably overlie complexly deformed and metamorphosed igneous rocks of the eastern margin of the Archaean Gawler Craton.
The main mineralisation occurs as well-defined zones at the top of the host Tapley Hill Formation (THF). The THF appears to have been deposited in shallow basin-like structures elongated along a north-west to south-east trend. Elevated base metal values (copper, lead and zinc) occur throughout the unit. The copper-cobalt mineral deposits are composed of sediment-hosted fine grained sulphides and a stratiform in style.
The currently contemplated mining strategy for MG14 and Windabout mineral deposits is based on the shallow depth, free dig overburden, and their sheet-like and sub-horizontal structure. The MG14 orebody would likely be mined first due to its higher grades and shallow depth while Windabout, with a lower he7ad grade, longer life, and higher stripping ratio would likely be mined subsequently.
The MG14 deposit is a concealed, flat lying body of disseminated copper sulphide mineralisation at 25m depth. It is oriented east-west and is approximately 1,400 m long by 400 m wide with a varying thickness between 3 to 8 m. A JORC 2012 compliant resource was estimated by T. Callaghan in June 2013 with a cut-off grade of 0.5% Cu and an average specific gravity of 2.5 (see Appendix C for more details).