Todd River Resources – (ASX: TRT, Share Price: $0.11, Market Cap: $8m, coverage initiated @ $0.115 in Nov 2017)
Key Catalyst
Continuous high-grade base metal mineralisation has now been defined over a down-dip extent of >300m at the Mt Hardy Copper-Zinc Project, with mineralisation remaining open down-dip.
We introduced TRT to our coverage universe during November 2017 at a price around $0.115, with the stock since trading both above and below our initiation price. TRT is a spin-off from TNG Ltd (ASX: TNG) and maintains a portfolio of base metal projects (primarily zinc-lead) at varying levels of exploration advancement. We elected to initiate coverage based on the disparity between TRT’s share price performance when compared with the underlying zinc price. Its primary asset is the Manbarrum zinc-lead project, one of Australia’s largest undeveloped zinc projects where a Conceptual Mining Study is underway to establish the criteria for successful project development. In addition, TRT maintains the Mt Hardy Copper-Zinc Project, where assay results from the recently completed Phase 1 drilling have clearly defined a continuous zone of high-grade mineralisation over a continuous dip extent of over 300m.
Latest Activity
Mt Hardy Exploration Update
As a follow up to our previous coverage of TRT on 2nd August, the company has reported the remaining analytical results from the first phase of diamond drilling at its 100%-owned Mt Hardy Copper-Zinc Project in the Northern Territory.
TRT has received final assay results for two key diamond holes – MHDD0039 and MHDD0040 – at the EM1 Prospect. Encouragingly, both holes intersected zones of high-grade base metal sulphides, with the highlight being an intercept of 7.92m @ 20.16% combined base metals from 179.38m in the upper hole, MHDD0040. This higher grade interval comes from the bottom of a broad zone of mineralisation that extends through multiple sulphide stringers for a total down-hole width of over 55m.
Figure 1: Oblique Cross-Section looking to the north-east showing the extent and continuity of the mineralisation at the EM1 Prospect.
Hole MHDD0040 was drilled steeply to the NNE (refer to graphic above), on a different azimuth to most of the other drilling to deliberately target the upper stringer zone of mineralisation, as well as to test for overall grade continuity through this zone.
Hole MHDD0039 (also refer to graphic above) intersected 9.27m of brecciated massive sulphides with slightly more clast material than seen in other holes. However, the tenor of the sulphides remains extremely high, as evidenced from the intercept of 1.12m @ 2.1% Cu, 14.4% Pb, 27.7% Zn and 473 g/t silver within this zone.
Meanwhile, initial interpretation of recently acquired down-hole Time-Domain Electro-Magnetic (TEM) data has shown evidence to connect the sulphide mineralisation between holes, whilst also highlighting conductive bodies in several areas both along strike and down-dip that will require drill testing.
Interpretation suggests that the mineralisation extends for at least 40 metres down-dip of MHDD0021A (refer to graphic above). A review and interpretation of all the down-hole geophysical data and surface Electro-Magnetic (EM) data is underway with final results expected within the next 1-2 weeks.
Figure 2: Mt Hardy Project showing the location of drill target area EM1.
Technical Significance
TRT now has all assay results to hand from the recently completed Phase 1 drilling, which have clearly define a continuous zone of high-grade mineralisation over a continuous dip extent of over 300m, with exceptionally high grades and tenor of mineralisation persisting to significant depths. Importantly too, the mineralisation remains open – both up and down-dip – providing immediate targets for an intensive phase of follow-up drilling after the completion of the current round of drilling at its McArthur copper-zinc project.
Importantly, the most significant mineralisation encountered in MHDD0040 is located above all previous 2017 and 2018 diamond drilling – and without any clear corresponding EM plate. This opens up the potential for significant near-surface mineralisation, in addition to the spectacular grades of mineralisation encountered at depth.
The next phase of drilling will include a number of holes designed to test for the continuity of shallow mineralisation at EM1 both up-dip from hole MHDD0040 and along strike to the north and south. The appropriate regulatory approvals are currently being sought for this work.
Next Steps
Together with the full review of all geophysical data collected at the project to date and interpretation of the recently acquired down-hole geophysics, a full review of the geochemical data from all drill-holes will be undertaken to understand the mineralisation style and potential vectors to additional mineralisation.
This will assist in enhancing TRT’s understanding of the mineral zonation observed in the drill-core from the analytical results. In addition, preparations are underway to undertake a new high-resolution airborne EM survey, to be flown at an optimum flight line orientation. This survey will also provide high-resolution aeromagnetic data that will assist the company’s geological team in providing a regional and local structural framework. The next drill program at Mount Hardy is expected to commence in September.
Summary
The strong zones of mineralisation encountered in diamond holes MHDDH0039 and MHDDH0040, along with the highly encouraging indications from down-hole geophysics, suggests there is potential for a new high-grade base metal system that warrants a major exploration push by the company. Continuous high-grade base metal mineralisation has now been defined over a down-dip extent of >300m, with the mineralisation remaining open down-dip. Geophysical Interpretation of the recent down-hole electro-magnetic (DHEM) data shows potential continuity of mineralisation further down-dip from the step-out hole MHDD0021A, along with significant additional off-hole targets that will require drilling.
