The Discovery and Geology of the Kham Thong Lai Copper-Gold Deposit, Lao, PDR AIG Geoscientists Symposia May 27th-29th 2013, Bali, Indonesia Paul Merriner Presentation Overview Prospect Location & Regional Setting Exploration Targeting Drilling Geology Alteration Mineralisation Structure Location and Regional Setting Xiengkhouang Province Phu Bia Contract Area (2600km2) Phonsavan Capital KTL Cu-Au Deposit The Phu Bia contract area (MEPA) is located in the north central part of Lao, PDR and lies at the confluence of the prospective Loei (LFB) and Truong Son fold belts (TFB). LFB and TFB are associated with widespread plutonism and volcanic activity and strong compressive forces which have moved prospective rocks to near surface. Mineral deposit discoveries made in the fold belts include Phu Kham Cu-Au, Sepon Cu-Au, Chatree Au-Ag and Ban Houayxai Au-Ag. Kham Thong Lai (KTL) Cu-Au deposit is in the northern part of the PBM MEPA, approx. 8 km east of the Xiengkhouang Province capital Phonsavan. The deposit lies on the broad Xiengkhouang Plateau at the northern end of the Annamese Cordillera. Location and Regional Setting Exploration – Geochemistry During 1994-1996 Normandy Anglo Asian completed regional BLEG stream sediment sampling which returned broad Au and Cu BLEG anomalies over KTL which led to its rediscovery. Normandy Anglo followed-up the BLEG results with detailed geological mapping and a gridded soil auger program, the results from which defined a 2.6 km long Cu and Au in soil geochemical anomaly. In 2008 PBM extended the Normandy Anglo soil grid to the north, south and west of the target and also completed infill sampling from 100m x 200m to 100m x 100m. Anomalous results extended the KTL Cu-Au geochemical anomaly a further 1km to the west. Coincident anomalous molybdenum in soil was also identified. Best Cu–Au mineralisation at KTL deposit occurs beneath the strongest Cu-Au-Mo soil anomalies. Exploration - Geophysics During 1994-1996 Normandy Anglo completed dipoledipole IP survey, ground and airborne magnetic survey over the KTL target area. • IP Chargeability zone identified • Magnetic high identified over the KTL During 2008 PBM completed gradient array, 3D IP and ground magnetics over the KTL area. • 3D IP survey identified two strong chargeability zones located immediately north and south of the mineralisation zone. Magnetic ground survey identified anomalous magnetic high zones (magnetite and pyrrhotite skarns) directly over the KTL deposit . In 2008 a tenement wide helimagnetic and radiometric survey Magnetic data over KTL produced a similar result to the previous survey. Closer spaced flight lines did improve the definition of the KTL magnetic response. • Best geophysical targets at KTL are coincident magnetic high- mod IP chargeability zones. Exploration - Geophysics Exploration and Resource Drilling 2005-2006 PhaseAnglo 2 Program – 23 drill holes for 1994-1996 2010-2012 Normandy 4 Drill Program 96 (diamond) – 31 drill drill holes holes forfor 3248m. 29,931.6m. Program Program 2012-2013 2009-2010 PBM 5 3 DrillScout 106 47 (diamond/RC) (diamond) drill holes for 20,050.5m. 9584.3m. Program 3157m.Program designed to test previous Normandy Anglo targets and continuity designed to test strike coincident and down-dip anomalous continuity and Au of significant inMo soil, mineralisation IPtest fromhigh Program to infill anomalous at 50m x Cu 50m Cu, Au spacing and over is dipole-dipole soil selected and IPparts chargeability of defined the deposit and to Totaldesigned drilling to drill date 323 drill holes for 70,100 metres of significant mineralisation intersected in high. the scout program. chargeability previous drilling high and and to airborne upgrade magnetic the resource category. increase magnetic confidence response from and the upgrade geochemical the KTL and resource geophysical category. surveys completed in 2008. Geology KTL geology consists of an E-W trending, moderate south dipping, weak to moderately foliated volcanosedimentary package of Late Carboniferous–EarlyPermian age containing alternating sequences of deformed siliclastics, calcareous sediments and volcaniclastics (co-genetic with intrusives). Volcano-sedimentary sequence intruded by rift associated multi-phase intrusive complex containing: • Low-K calc-alkali diorite/tonalite granitoid stocks • Late quartz-feldspar rhyodacite porphyry dykes • Late basaltic to basaltic andesitic intrusives Skarn is common throughout KTL. Mainly occurs as exoskarn. Prograde skarns - calc-silicate (garnet/epidote/pyroxene) and magnetite. Retrograde skarns - actinolite, chlorite, sulphide. Form at granitoid and porphyry intrusive contacts with limestone and calcareous sediments. Redbeds (ferruginous arenite) lies unconformably over sediment package and intrusives. KTL Geology Block Model Alteration The KTL deposit is host to complex hydrothermal and metasomatic hydrothermal alteration patterns with strong lithological and structural control. Propylitic –widespread throughout the KTL deposit. Common alteration style in stocks. Contains epidote, chlorite, albite, actinolite, carbonate, pyrite, silica, pyrrhotite, hematite. Phyllic – common throughout deposit. Weak to strong sericite, silica, pyrite, carbonate, chlorite, albite. Common in dioritetonalite intrusive and feldspar-quartz porphyries and nearby sediments and volcanics. Magnetite skarn - magnetite, pyrrhotite, pyrite, chalcopyrite. Mainly forms as exoskarn at limestone/intrusive contacts. High-T calc-silicate skarns - prograde? Mainly forms as exoskarn, garnet skarn (grossular-andradite) or clinopyroxene skarn (diopside-hedenbergite), ±magnetite. Low-T retrograde skarns – formed during thermal collapse, form as exoskarn, commonly overprint calc-silicate and magnetite skarn. Assemblage contains actinolite, calcite, quartz, sulphide (pyrrhotite, chalcopyrite, pyrite, sphalerite), chlorite, prehnite. Pyrrhotite-magnetite-chlorite-pyrite-chalcopyrite skarn containing 1.5% Cu, 1.75g/t Au. Qtz-carb-sulfide-gold veined, high-intensity sericite-qtzsulfide alt quartz-feldspar porphyry Foliated high-intensity sericite-chlorite-quartz-calcitesulfide (intermediate phyllic) altered porphyry Mineralisation The KTL deposit is a stratabound porphyry-skarn style copper gold system which is host to: Quartz-dominant stockworks and sheeted quartzsulphide veins. Sulphide disseminated mineralisation Fractured-controlled sulphide veining in volcanosedimentary wall rocks. Skarn mineralisation. High-T and Low-T type. Supergene mineralisation Mineralisation is considered to be coeval with stock emplacement. Re-Os age dating from vein hosted molybdenite returned an age of 289.4 ± 1.0 Ma (Early Permian). Partial remobilisation of the Early Permian KTL mineral system during thrust related shearing – possibly related to the Indosinian accretion event. Main Sulphide Minerals: pyrite, chalcopyrite and pyrrhotite with less common molybdenite, bornite, sphalerite and galena. Main Gangue Minerals: quartz, carbonate, pyrite, magnetite, pyrrhotite, albite, plagioclase, epidote, sericite, chlorite, garnet, actinolite. Mineralisation Structure The regional structure in the Phonsavan area is dominated by south verging fold-thrust belt of probable Late Permo-Mid Triassic age related to accretionary tectonics during the Indosinian. Evidence of the fold-thrust system is observed at KTL as fold-thrust related shear and foliation fabrics. Most parts of the KTL deposit show some degree of deformation ranging from weak to pervasive. Phyllic altered zones typically show more intense and pervasive deformation than the outer propylitic zones. Main thrust planes are easy to identify but difficult to measure in core. Foliation measurements from outcrop and drill core show a consistent E-W strike and south dip orientation - which is parallel with regional thrust structures. Similarly bedding shows a general E-W strike and dips moderately to the south. Vein measurement data from drill core indicates multiple vein sets occur at KTL which are associated with the main fold-thrust event and late NW and NE orientated faults. Late NW and NE faults at KTL formed post mineralisation and are responsible for brittle deformation throughout the deposit. 3D modeling interpreted from the current drilling and assay indicates that displacement and/or truncation of the KTL ore deposit is minor except in the central part of the deposit where a late NW dextral strike-slip appears to have displaced the deposit by approximately 200m. Structure CLEAVAGE BEDDING Phu Bia Mining Thank You