2023_CIO_Press Release Phase 2 Soil Sampling and South Darlot Update
2023_CIO_Press Release Phase 2 Soil Sampling and South Darlot Update
ABN: 32 072 871 133
Central Iron Ore Ltd.
Suite 1 Level 2, 49-51 York Street, Sydney 2000 Australia
Tel. 61 2 9397 7555
NEWS RELEASE Symbol: CIO-TSXV
28 July, 2023 For Immediate Dissemination
Phase 2 Soil Sampling at South Darlot Gold Project
VANCOUVER, BRITISH COLUMBIA – (Marketwire – 28 July, 2023), Central Iron Ore Ltd.
(CIO – TSX.V) (“CIO” or “the Company”) is pleased to announce the soil geochemistry results
from the Phase 2 soil sampling at the South Darlot Gold Project, conducted in Q4 of 2022
.
SOUTH DARLOT GOLD PROJECT (Western Australia)
The Company’s South Darlot Gold Project area is located approximately 320km northwest of
Kalgoorlie in Western Australia and includes:
• The British King Mine which is 49% owned by the Company and which is National
Instrument 43-101 – Standards of Disclosure for Mineral Projects (“NI43 -101”) compliant. The
British King Mine is 5km southwest of Red 5 Limited’s Darlot Mine. The British King Mine is
currently in care and maintenance.
• A number of tenements which are subject to a joint venture with subsidiaries of Red 5
Limited (“Red 5”), details of which are set out below, in which CIO has earned a 70% interest.
2023_CIO_Press Release Phase 2 Soil Sampling and South Darlot Update
Figure 1: Locality map of the South Darlot project
RED 5 JV Project (Formerly Barrick Joint Venture Project)
The tenements set out in the table below (“Red 5 JV Tenements”) are the subject of a joint venture
between the Company and subsidiaries of Red 5 Limited (“Red 5 JV”) and are situated southwest
of Red 5’s Darlot gold mine and are contiguous with CIO’s current holdings in the area. The Red
5 JV Tenements are detailed below.
Table 1: List of South Darlot tenements
Project Tenement Status Area (ha)
Barrick JV M37/421 Granted 381
Barrick JV M37/552 Granted 200
Barrick JV M37/631 Granted 776
Barrick JV M37/632 Granted 595
Barrick JV M37/709 Granted 98
Barrick JV M37/1045 Granted 90
Focus of Sampling and recent multi-element analysis
Following the success of the Phase 1 soil sampling campaign over the Endeavour and Mermaid
prospects, a Phase 2 soil sampling campaign was conducted to the west, north and east of the
previously sampled area. Au enrichment in the area is interpreted to be sourced from the several
structures which strike WSE-ENE throughout the tenements and in structural dilation zones caused
by strike-slip movement of orthogonal smaller structures.
A total of 3,864 samples were collected across an a rea of 3.2 km 2. Sieved samples 200 – 300
grams in weight were collected from each location and sent to LabWest Minerals Analysis Pty Ltd
in Malaga, WA. Samples were screened to the <2 micron fraction and analysed for Au + 50 element
suite by ICP-MS/OES. LabWest conduct trace elemental abundance using their Ultrafine
technique, which examines the clay sized fraction (<2 micron) of the soils. This fraction contains
the most mobile region of soils and therefore is more sensitive to anomalous doma ins in
transported regolith profiles.
As per the previous soil sampling campaign, a tight sample density (20m northing x 30m easting)
was employed to better identify other potential systems with a similar footprint of Endeavour and
Mermaid, which are short striking but abundant in Au enrichment. It also provided insight into areas
that were poorly prospective and can be suitable for mining infrastructure when mining commences
in the South Darlot region.
Recent multi-element and petrographic analysis of the mineralisation at the Endeavour Prospect
revealed there is a base metal associated with the Au enriched vein. Cu, Pb and low levels of Ag
were present in said test work, which were used as a guide when discriminating higher rank
anomalous targets when these elements were found to be spatially coincident to Au.
2023_CIO_Press Release Phase 2 Soil Sampling and South Darlot Update
Soil Geochemistry Results
During the soil sampling campaign, a region containing battery sands was identified on the
western flank of the samples area. This area was identified post sample collection and was further
validated by field reconnaissance completed by a Field Geologist. When the assays were
returned, this area was highlighted to be extremely anomalous, however the samples were
chosen to be omitted from the analysis due to their biased results. The results have been omitted
from all images presented in this release.
Eight (8) new areas have been highlighted as prospective for Au and require further investigation.
Coupled with the P hase 1 soils campaign, a total of thirteen (13) targets have been generated
from the soil sampling campaigns completed in the South Darlot region. Several of the new targets
are coincidental with historically mined (early 1900’s) locations. Further analysis of the South
Darlot geology database show that these historically mined locations have minimal to no below
surface definition and therefore should be focused on with either Aircore (AC) or Reverse
Circulation (RC) drilling. All new locations highlighted by the P hase 2 soils cam paign show to
have coincidental elevated pathfinder elements such as Cu, Pb, Bi, Co, As, Ag, Sb and Te to Au.
Sandy Ridge, located in the northern portion of the sampled region is coincidental within a
gravitational high domain, interpreted to be a metagabbro unit. It is likely that these regions have
experienced strike-slip movement to create dilational zones where hydrothermal fluid has been
able to percolate into the host rock and allow for Au enrichment.
2023_CIO_Press Release Phase 2 Soil Sampling and South Darlot Update
Figure 2. Au (ppb) dispersion in the South Darlot Gold Project with known mineralised deposits and areas of interest
highlighted from both soil campaigns. Yellow circled areas were identified in P1 Soil campaign, whilst purple areas identified
in P2 Soil campaign.
Figure 3. Screengrab of ioGASTM observing Au and its correlation with base metal and other Au pathfinder elements. Red –
Known mineral deposits, Yellow – Phase 1 Prospective areas for Au exploration, Purple – Phase 2 Prospective areas for Au
exploration.
2023_CIO_Press Release Phase 2 Soil Sampling and South Darlot Update
One (1) new area was highlighted as prospected for Li exploration. Li3 exhibits a reasonable
correlation between Li and Ta, V, but shows a strong correlation with Ni, Co, Al, Mg and Pt, Pd.
Cs and Ta generally show low levels which is does not support the theory of an LCT pegmatite
within Li3, however there may still be a source for lithium if the presence of pegmatites can be
found within the metagabbro.
As Li3 is located within close proximity to the Sandy Ridge anomaly for Au, when drilling is to
occur to test the region for Au, if any pegmatites are intersected, they will be selected for multi -
element analysis to determine their Li and LCT-Pegmatite potential.
Figure 4. Li (ppm) dispersion in the South Darlot Gold Project.
2023_CIO_Press Release Phase 2 Soil Sampling and South Darlot Update
Figure 5. Screengrab of ioGASTM observing Li with respect to LCT Pegmatite pathfinders. Green – Prospective areas for Li/LCT
Pegmatite exploration.
Q3-Q4 Planned Drilling of Identified Targets
An AC programme consisting of 56 holes for 3,920m is already planned in the South Darlot region
to test the five (5) targets from the Phase 1 soil sampling campaign. This is planned in Q3-Q4 of
2023. A systematic approach has been planned to test these regions and may change in the field
during drilling, based on intersected domains. It is interpreted that the mineralising structures dip
at varying angles towards the south, so a broad northern dipping programme is likely to intersect
potential mineralising structures.
2023_CIO_Press Release Phase 2 Soil Sampling and South Darlot Update
Figure 6. 23 South Darlot AC Programme, highlighting previous drilling (green crosshairs) and locations of known
mineralisation.
Design work for the drilling o f the Phase 2 Soils campaign targets is still underway. As most
targets identified have shown some evidence of economic mineralisation (historic workings) RC
drilling will occur to collect a more representative sample and to better define the potential
mineralisation and voids of the area. Most of the drilling will be designed to intersect potential
mineralisation within the transitional domain, as it is likely that mineralisation in the South Darlot
region all exhibit a typical supergene environment, simil ar to what has been identified from the
drilling at the Endeavour and Mermaid prospects.
Endeavour Toll Treatment Test work.
In May 2023, the Toll treatment test work was completed by JT Metallurgical Services Pty Ltd on
the Endeavour prospect.
Some key findings from the test work are:
• Very low levels of all deleterious elements (As, Sb, Bi, Te, Cu, Pb and Hg).
2023_CIO_Press Release Phase 2 Soil Sampling and South Darlot Update
• Good agreeance between BLEG, FA and bottle roll recalculate grades for two presented
composites.
• All composites were highly amenable to Gravity/Cyanidation.
• Gravity recovery was considered good, averaging 48.6%
• Overall extraction for composites averaged at 99.2% recovery. Composites exhibited
excellent leaching kinetics, with leaching being near/at completion in eight (8) hours.
• Rheology test work were pumpable at all tested conditions.
• Comminution test work showed that the Endeavour ore are within specifications for toll
treatment facilities and are below penalty thresholds.
Figure 7. Left image – microscopy photo of panned Knelson concentrate. Right image – HG composite Panned Knelson
concentrate. Seen in the images are the grains of visible gold, electrum, and copper bearing minerals, likely covellite, malachite
and azurite. Copper minerals are in generally low abundance and not deleterious to recovery.
QUALIFIED PERSON
Mr Andrew Bewsher who is a Member of the Australian Institute of Geoscientists and has
compiled the information within this report relating to soil geochemical distributions. Mr Bewsher
has sufficient experience relevant to the style of mineralisation and type of deposit under
consideration and to the activity currently being undertaken to qualify as a Competent Person as
defined in NI 43-101.