Temora / Barellan JV Project

Carpentaria is advancing its Barellan (EL 7896) and Combaning (EL 6901) NSW gold projects under a JV agreement with Cape Clear (Lachlan) Pty Ltd (refer ASX announcement 27 January 2016).

Under the agreement:

• Carpentaria currently holds a 10% interest in the both projects, with Cape Clear holding the remaining 90%;
• Once either company dilutes to less than 10% the diluting company automatically converts its interest to a Net Smelter Return (NSR) of 1%.

Commenting on the agreement, Carpentaria’s Managing Director, Quentin Hill said: “Confirmation of this agreement with Cape Clear is a win-win for both parties. Highly prospective targets will be tested by Cape Clear this year, giving our shareholders the opportunity to benefit from any discovery at no cost. Importantly, it also allows Carpentaria to continue the focus on our highest value project, our flagship Hawsons Iron Project near Broken Hill.”

The Barellan licence area is located within the Wagga-Omeo segment of the Lachlan Fold Belt and within NSW, extending south-southeast for some 600km from north of Cobar to Albury. It hosts historically important intrusion related tin-tungsten mineralisation centred on Ardlethan and Gibsonvale. This segment is underexplored, and highly prospective for intrusion related gold systems (IRGS).

The Barellan prospect is a surface rock gold-antimony-arsenic anomaly that contains hairline quartz-sulfide vein stock-work hosted by phyllite, interpreted to be situated in the roof-zone of buried granite with potential for stock-work, replacement or other structurally (fault, shear) controlled intrusion related gold mineralisation.

The Combaning licence area includes Macquarie Arc Volcanics and the Gilmore Suture Zone, a major regional scale structural zone that is thought to control mineralisation at Gidginbung (700 Koz) and Cowal (3 Moz) and a number of other smaller epithermal gold deposits. Carpentaria’s priority target has been the Mother Shipton Prospect with over 30,000 oz of historical production, located in and around a mafic intrusion within sediments and volcanics with abundant quartz veining and silica-sercite-pyrite alteration.

Highlights

• At Barellan, a historical drainage channel result of 60m at 1.5 g/t gold – including 10m at 4.5g/t of which remains untested and, when combined with the geological setting, highlights the potential for large-scale intrusion related gold mineralisation;
• Historical precussion driling of the drainage anomaly returned 12m at 0.43 g/t gold, however failed to test the high grade channel intersection;
• Carpentaria’s follow up drainage returned 32m at 0.5 g/t gold – including 12m at 1.5 g/t gold and best rock chip 8.8 g/t gold;
• At Mother Shipton, a best intersection of 4m at 3.95g/t gold has highlighted the project’s bulk tonnage gold-copper porphyry and epithermal potential. The main magnetic anomaly under the Mother Shipton mining area is still untested at depth with Surface Disturbance Notices (SDN’s) approved and ready for drilling.

Key targets for EL 7896

Key targets for EL 6901