MRG Resources

Project Summary

The Gill Creek Project is located approximately 35km east of Greenvale in north Queensland and hosts a large-scale, preserved epithermal field that is prospective for Au-Ag-Sb mineralisation. The project consists of 8 subblocks of granted Exploration Permit for Minerals 27774 and application Exploration Permit for Minerals 28869, cumulatively covering c. 350km².

Northeast Queensland is an underexplored terrane hosting >50Moz Au in past production and current resources from numerous deposits, including: Kidston, Red Dome/Mungana, the Charters Towers Field, Pajingo, Mt Leyshon, and the Ravenswood Field.

Exploration at Gill Creek by Liberation has built upon work by historical explorers with extensive new veins and areas of silicification mapped within the hinge zone of the hosting Mossman Orocline. The size of the epithermal field has been significantly expanded by Liberation to cover c. 148km², a size that rivals that of the world-class Pajingo Epithermal System located c. 200km to the southeast.

Figure 1: Project Location.

Figure 2: The Gill Creek Epithermal System is hosted within the
hinge zone of the regional Mossman Orocline.

Gill Creek Epithermal System

Numerous prospects occur within the Gill Creek Epithermal System with the two most advanced being Spencers Ridge and Storm Hill.

While these prospects were considered unrelated by past explorers, mapping by Liberation has shown that Spencers Ridge and Storm Hill form the western half of a >4km long epithermal trend that includes Connection, between Spencers Ridge and Storm Hill, and Storm East. This trend, the Spencers-Storm Trend, bears strong similarity to the well-endowed Vera-Nancy Trend at the Pajingo Epithermal System and represents a high priority exploration focus.

A structural analysis of Gill Creek, undertaken by Liberation in collaboration with The University of Queensland as part of a Broken River Province focussed PhD thesis, indicates that the Spencers-Storm Trend lies within a splay fault immediately adjacent to a regional-scale normal fault within the hinge zone of the hosting Mossman Orocline. This post-oroclinal normal fault network displays pure extensional kinematics and formed a favourable structural architecture for the ingress of hydrothermal fluids that formed the Gill Creek Epithermal System.

Strong geochemistry is reported in 373 historical rock chips at Spencers Ridge and Storm Hill – and confirmed by Liberation sampling – with veins and silicification dominated by high-level, chalcedonic textures. Additional mapping and sampling undertaken by Liberation along the Spencers-Storm Trend, and in other areas away from the trend, has identified numerous new prospects that warrant exploration. Geochemistry of historical rock chips reported from Spencers Ridge and Storm Hill include:

Gold:

Peak result of 3.38g/t Au

61 samples >1g/t Au

261 samples between >0.1 and 1g/t Au

Silver:

Peak result of 81g/t Ag

51 samples >1g/t Ag

Antimony:

Peak result of 15.89% Sb

69 samples >0.1% Sb

131 samples between >100ppm and 0.1% Sb

Mercury:

Peak result of 14ppm Hg

32 samples > 1ppm Hg

Arsenic:

Peak result of 0.24% As

209 samples >100ppm As

Detailed airborne magnetic-radiometric surveying undertaken by Liberation has identified a subtle magnetic signature along the Spencers-Storm Trend that is thought to represent a hydrothermal alteration halo. Encouragingly, several similar linear features are noted nearby that coincide with mapped silicification with elevated Au-Ag-Sb-As geochemistry. Surveying has also identified a series of interpreted Kennedy Igneous Association intrusives occurring below and adjacent to epithermal trends, with these igneous features likely to be causative intrusions.

Figure 3: Widespread Au-Ag-Sb-(As-Hg) enrichment occurs in upper-level epithermal veins along the Spencers-Storm Trend and at nearby, newly identified prospects (note: for simplicity, historical rock chip samples at Spencers Ridge and Storm Hill are not displayed).

Figure 4: Gill Creek strongly conforms to the generic epithermal exploration model in terms of geochemical (Hg, Sb, As, Ag, Au) zonation, system size and geometry, and vein textures suggesting a preserved epithermal system occurs that has been inadequately drill tested for a high-grade boiling zone at depth.

Historical drilling at Gill Creek by past explorers was restricted to 12 holes for 959m, which included six holes at Spencers Ridge for 631m (max depth 154m @ -60°), and six holes at Storm Hill for 328m (max depth 61m @ -60°). All holes intersected quartz veining with highly elevated Au confirming that the strong epithermal surface indications continue with depth and remain open. Notable intersections include:

QGCRC1

6m @ 0.38g/t Au from 135m

QGCRC2

33m @ 0.21g/t Au from 0m

and, 3m @ 0.68g/t Au from 36m

and, 3m @ 0.25g/t Au from 51m

and, 3m @ 0.54g/t Au from 66m

QGCRC3

3m @ 0.14g/t Au from 9m

and, 9m @ 0.12g/t Au from 24m

and, 6m @ 0.35g/t Au from 48m

and, 9m @ 0.24g/t Au from 69m

QGCRC4

9m @ 0.16g/t Au from 6m

and, 3m @ 0.41g/t Au from 21m

and, 3m @ 0.14g/t Au from 48m

and, 3m @ 0.25g/t Au from 93m

QGCRC5

9m @ 0.45g/t Au from 3m

and, 6m @ 0.12g/t Au from 30m

and, 9m @ 0.12g/t Au from 51m

and, 3m @ 0.12g/t Au from 81m

QGCRC6

9m @ 0.19g/t Au from 0m

and, 3m @ 0.11g/t Au from 39m

and, 29m @ 0.18g/t Au from 60m (open)

- incl, 3m @ 0.15g/t Au from 60m

9m @ 0.29g/t Au from 66m

3m @ 0.37g/t Au from 78m

- and, 2m @ 0.20g/t Au from 84m (open)

SH-PDH-1

17m @ 0.23g/t Au from 8m

incl, 4m @ 0.26g/t Au form 12m

and, 7m @ 0.34g/t Au from 18m

SH-PDH-2

21m @ 0.17g/t Au from 21m

8m @ 0.28g/t Au from 24m

SH-PDH-4

13m @ 0.22g/t Au from 5m

and, 5m @ 0.27g/t Au from 23m

and, 1m @ 0.27g/t Au from 32m

The combination of widespread, abundant quartz veins boasting upper-level epithermal textures and geochemistry indicates that a preserved, metal-endowed epithermal system of significant size exists at Gill Creek.

Historical drilling has partially tested this system confirming that veins continue below surface with significant widths of elevated Au intersected. Importantly, given the shallow nature of the drilling, it is unlikely that the Gill Creek epithermal system has been adequately tested for high-grade boiling zones that are, given the observed characteristics of the system, indicated to occur at deeper levels.

Future exploration at Gill Creek is anticipated to include expanded airborne magnetic-radiometric surveying, additional geological mapping, and a phased program of IP/AMT geophysical surveying to advance prospects towards drill readiness, ahead of initial drill testing. At Spencers Ridge and Storm Hill, fast-tracked initial reconnaissance drilling could also be considered.

Liberation is currently assessing commercialisation pathways for Gill Creek to advance exploration towards mineral resource discovery. Expression of interest are welcomed.