New Projects: Abydos and Goldsworthy tenements
In November 2007 Shaw River Resources announced the acquisition of gold, base metals, nickel and PGE mineral rights from Atlas Iron on 14 Pilbara tenements (1,328 km2) for 8.2 million shares and 2.5 million options in Shaw River subject to shareholder approval at a January 2008 meeting.
The tenements lie adjacent to known deposits such as Lynas Find (gold) and Sulphur Springs (copper-zinc) and contain areas which have undergone limited exploration by modern methods.
The acquisition provides Shaw River with a natural extension to its exploration strategy in the Pilbara and further enhances the company as a significant Pilbara focused minerals explorer with significant mineral target potential across the newly acquired ground. The new mineral rights tenements increase the company’s prospective ground position in the Pilbara to over 6000km2.
Background information on tenements
The 14 new tenements (9 granted and 5 applications) are located in the Abydos and Goldsworthy regions of the East Pilbara adjacent to Shaw River’s existing project areas. The new ground expands Shaw River’s land holding by a further 1,328 km2
The new tenements are located adjacent to known gold and base metal deposits and existing Shaw River projects at Hedland, Pardoo and Abydos. The tenements are considered highly prospective for gold and base metals such as zinc, lead and copper as well as having potential for nickel and PGE (Platinum Group Elements).
Shaw River intends to begin mineral exploration on the tenements immediately, focused on the generation of drill targets. The company will target areas adjacent or along strike of known mineral occurrences and historical deposits.
Abydos
The Abydos group of tenements consists of six granted tenements located 110km south of the town of Port Hedland and are additional to the company’s two existing tenements in the area.
The tenements are currently being explored by Atlas for iron ore in the Pincunah Greenstone Belt. Historical mining in the area includes the Lynas Find goldfield (+140,000oz mined) and the Lallah Rookh Gold Mine (31,900 oz mined). The eastern tenements of the group include rocks of the Sulphur Springs Group, which host the Sulphur Springs VHMS deposit (10mt @ 3.5% Zn and 1.5% Cu), just 8km to the east. Historical information shows the presence of multiple known occurrences of gold, base metals (copper-zinc-lead and silver), nickel and PGE anomalism across the tenements being acquired.
Tenement E45/2404 in the package includes the southern end of the prospective Tabba Tabba Shear Zone currently being explored by Shaw River with exciting new gold results at its Hedland Project. This mineralised greenstone belt hosts base metal, gold and PGE mineralisation.
Shaw River will commence a joint mapping program with Atlas over the Abydos tenements starting in late November 2007. This detailed geological mapping will allow the company’s exploration team to immediately target potential mineralisation by creating an improved and consistent understanding of the geological environment.
Goldsworthy
The Goldsworthy tenement group consists of three tenements and five tenement applications adjacent to Shaw River’s Pardoo and Hedland Projects. The tenements cover an area under shallow cover on the north eastern extension of the mineralised Tabba Tabba and Mallina Shear Zones where they collide and wrap around the south end of the Ord Ridley Greenstone Belt. Previous work by holders Independence Group included shallow RAB drilling and geophysics into the sediments and sheared rocks located in the area. Gold intersections included; 10m at 0.26 g/t Au including 1m at 1.31 g/t Au in GWA, 107, 8m at 0.53 g/t Au including 1m at 2.2g/t Au in GWA117 and 6m at 0.5 g/t Au including 1m at 2.63 g/t Au in GWA 115.
Regional geophysics suggests a complex geological environment with evidence for numerous styles of gold and base metal shear hosted mineralisation.
Shaw River regards this area as highly prospective given results to-date at its adjacent Hedland project. The new tenement acquisition with associated data will improve Shaw River’s geological model and allow Shaw River to extend its programs and opportunities. Work on this area is likely to commence immediately following exploration that is currently underway on Shaw River’s Hedland project.