tommy
07-05-2008, 04:43 PM
Okay, you all know I am crazy about fertilizers (potash and phosphate) at the moment.
Here is another one, Krucible Metals (KRB). Will this be the next MAK, RWD and MNM? Keep an eye on this, it is still under the radar :-)
Market cap: about 22 million?
Cash: 5+ million
Unlisted options: 3,100,000
Shares total: 52,959,100
Current share price: 40c
Chart:
http://bigcharts.marketwatch.com/interchart/interchart.asp?symb=AU%3Akrb&draw.x=54&draw.y=17
______________________
QUARTERLY ACTIVITIES REPORT - MARCH 2008
HIGHLIGHTS
EXPLORATION
* Phosphate prospects‐ Krucible has made considerable progress during the quarter in advancing the phosphate potential on its 100% owned ground in the Georgina East Sub Basin. This ground is located close to the Incitec Pivot Limited owner‐operated mine at Phosphate Hill, NW Queensland, which is a leading producer of high‐grade processed phosphate for fertilisers. Historical drilling in and around Krucible tenements produced phosphate intersections comparable to the mined grades at Phosphate Hill. Also limited
surface sampling by Krucible produced anomalous phosphate assays up to 5% P2O5. Drilling of phosphate target areas is planned for the next quarter, subject to site clearances.
* Mt Isa style basemetals prospect‐ RC percussion drilling is planned in May‐June 2008 at the Ardmore North prospect where anomalous values in silver, copper, lead & zinc have been returned from highly ferruginous rocks, similar to the sedimentary package hosting the world class Mount Isa mines.
* Iron formation‐hosted copper‐gold prospects ‐ Anomalous rock chip values up to 10.6 grams per tonne gold and 13.2% copper have been returned from the Merlin Tank EPM in an area of poor outcrop, located about 16km west of the Starra and Swan copper/gold deposits held by Ivanhoe Mines. Systematic soil and lag sampling is planned to define possible drill targets for copper / gold mineralisation at this prospect
* Iron oxide copper‐ gold [IOCG] prospects ‐ The Company has applied for Queensland Government financial assistance, under the "Collaborative Drilling Initiative" designed to encourage drilling of new targets in under explored areas. If successful Krucible could receive up to $150,000 to defray direct drilling costs for the Kamaran Downs IOCG Project in the frontier Diamantina region of west Queensland
* Frontier Exploration prospects‐ Ten new EPMs have been applied for covering newly defined gravity and magnetic anomalies along the Diamantina Orogen Fault Zone and the Diamantina Hinge Zone. The Company values these tenements as having significant copper gold potential in a relatively unexplored region of Australia.
*Krucible is negotiating drilling contracts for both shallow prospect definition and deeper targets for commencement as soon as rigs are available.
* Krucible holds 14 EPM’s and 15 EPMA’s for approximately 12,000 km2. The Company owns all these tenements forming the Krucible portfolio 100%.
CORPORATE
* Krucible had cash resources of $5,471,000 at the end of the quarter
* Shares and options owned by the directors of Krucible in the Company are unencumbered and not subject to any loan obligations
Project Activities Report
1. PHOSPHATE POTENTIAL (GEORGINA EAST SUB BASIN)
Background
Due to sharply increasing market value of phosphate for ammonium phosphate fertiliser over the last 12 months, Krucible is actively investigating the potential for economic phosphate (P2O5) deposits within its wholly owned tenements, Corella Bore ‐ EPM15572 and Merlin Tank EPM 15811.
One of the western world's largest producers, Incitec Pivot Limited, mines phosphate rock in the range of 15‐25% P2O5 at the world class Phosphate Hill mine [PHM] near Duchess and 150 km SSE of Mt Isa. Krucible’s tenements, especially the Corella Bore tenement is known to have Cambrian age phosphate rich rocks in similar setting to Phosphate Hill geology. (see Figures 2 & 3).
The phosphate rich rock is within sedimentary units that are beneath shallow cover and will require drill testing to determine their extent and P2O5 grade
The Company plans to carry out a series of work programs, including drilling, in the next 6 months to determine the possibility of an economic resource being discovered in the Corella Bore and Merlin Tank EPMs.
Following is a summary of results of research on previous work as well as results from limited follow up field investigation carried out by Krucible thus far.
Previous Phosphate Exploration
A number of companies explored for phosphate in the Mt Isa‐NW Queensland region during the 1960's and 1970's.
In addition geological mapping programs were carried out by the Queensland and Australian Government to better determine the conditions for phosphate deposition and enrichment and therefore the likely sites for ore grade phosphate.
Mines Exploration Pty Ltd, in 1966‐68, detailed a number of P2O5 occurrences that are located within or close to Krucible's Corella Bore EPM15572. At the D10 Prospect, channel sampling of surface outcrop returned 23metres @ 12.5% P2O5, including 2m @ 26%. This D10 Prospect is within EPM15572 and located 11.5km north of PHM. In addition drilling by Mines Exploration at Phosphate South returned intersections up to 7m @ 26% P2O5 ‐ this is
about 500m from the boundary of Corella Bore EPM 15572.
Mapping by the Geoscience Australia (de Keyser, BMR Bulletin 1968/67), located a phosphorite occurrence on the east side of the Cambrian Georgina East Sub Basin at Pomegranate Creek (see Figure 3). This is close to the northern boundary of Krucible's Merlin Tank EPM 15811.
Newmont Proprietary Limited drilled 14 shallow wide spaced holes with average depth 30 metres, south of Pomegranate Creek in 1975. Sub economic phosphate was intersected in a number of holes within the phosphatic Beetle Creek Fm., with intersections up to 2m @ 11.5% P2O5 (see Figure 3).
Sons of Gwalia Ltd (SOG) also drilled in the Merlin Tank area searching for copper& gold mineralisation in the Proterozoic basement. Although they only analysed 10 of about 80 holes for phosphorous, these returned up to 5%
P2O5 from the Cambrian sediments in the prospective corridor (see Figure3). Field investigation by Krucible has shown that drill chips remain around most of the SOG holes and a total of 49 old holes have recently been sampled by Krucible and submitted for phosphate analyses. The analytical results are expected in 3‐4 weeks.
It is important to note that very little exploration for phosphate, outside of the PHM Mining Leases, has taken place in this region over the last 30 years to 2007, due to the prevailing poor economics of phosphate mining and lack of availability of acid and nitrate gas for enrichment for fertiliser use.
This has now changed with the infrastructure for PHM integrated phosphate fertiliser manufacturing facility.
Krucible’s Phosphate Sampling
Some limited follow up field sampling has taken place and results of this are considered to be very encouraging.
4.79% P2O5 was returned from shale thought to be close to the D10 Prospect locality north of PHM and 5.16% P2O5 was returned from water bore (?) chips at PHM South, close to the abutting ground of the Corella Bore EPM 15572 and the Phosphate Hill Mining Lease. Details of the sampling are shown in the Table 1 below.
Table 1
CORELLA BORE ANOMALOUS PHOSPHATE SAMPLES
Sample Location / AGD 66
Anomalous Phosphate
Samples Comments
East North P P205
20863 394359 7591881 2.09% 4.79% Near D10 location 12km N of PHM
20873 394250 7594300 2.26% 5.16% Water Bore chips 2km S of PHM
Future Phosphate Work by Krucible
Compilation and interpretation of previous and current work will be carried out on the prospective corridors outlined on Figures 3 & 4. This will be followed by lag and rock chip sampling as well as mapping over target areas.
When all results have been collated, drilling will be carried out to better define possible zones of phosphate enrichment.
Before drilling commences native title clearance will need to be carried out by the traditional landowners‐ this is scheduled to take place in the next 3‐5 weeks and it is hoped that drill testing will commence in June 2008.
Should the Krucible exploration be successful this region is ideally situated for development because of the existing power grid, gas pipelines and the operating Queensland Government railway link to Mount Isa.
2. COPPPER GOLD EXPLORATION MERLIN TANK EPM 15811
The NE portion of this tenement is considered to be prospective for copper & gold mineralisation associated with demagnetised zones along major structures at Mistake Creek (see Figures 2 & 3). The Mistake Creek Prospect is located about 17km WSW of the large Swan copper/gold resource currently being drilled by Ivanhoe Mines Ltd. Recent Krucible rock chip sampling has returned maximum values (ppm) of 10.6 Au, 51.3Ag, 1110Co & 13.2%Cu.
Details of the anomalous results are shown on the Table 2 below.
Table 2
MERLIN TANK ANOMALOUS SAMPLES Mistake Creek Prospect
Sample Location / AGD 66 Anomalous Results (ppm) Comments
East North Au Ag Cu Co
50801 430100 7600800 10.6 5.7 862 Ironstone Outcrop 2m wide
50802 429450 7601005 527 1110 Manganese breccia 5m wide
50808 430920 7600554 51.3 13.20% Boulder float, Ironstone
visible secondary Cu close to EPM boundary
The results of sampling to date at Merlin Tank are considered to be very encouraging given the poor outcrop in the area and the limited drilling carried out to date. Most of the drilling carried out by SOG was further to the west, targeting magnetic anomalies in Proterozoic basement beneath Cambrian sediments.
Future work proposed for this area in the May‐July 2008 period includes soil & lag sampling followed by air core & percussion drilling.
3. MT ISA STYLE BASE METAL EXPLORATION ARDMORE EPM 15487
As reported previously, gossanous rock chips assayed up to 5830ppm lead from interpreted Mount Isa Sequence ferruginous sediments were located at Ardmore North located about 100km S of Mount Isa. These are close to previous shallow (9metres) RAB holes drilled by Getty Oil Ltd in 1984, which assayed up to 3550 ppm lead.
No known RC or diamond drilling has been carried out in this area.
Progress on the results of soil/termite nest sampling at Ardmore North was outlined in the Krucible ASX announcement on 18 March2008 (see Figure 5). Some follow up surface sampling has since been carried out as well as preparation for drilling that is scheduled for May/June 2008.
Anomalous results were returned from the rock chips with maximum values (ppm) of 4.7 silver, 1390 copper, 1080 lead & 1270 zinc ‐ see Table 3 below for details of the sampling. The strongly ferruginous sediments (after sulphides?), sampled at Ardmore North vary in width from 10 to 20 metres. This sedimentary package is considered to be similar stratigraphy to the rocks hosting world‐class basemetal mines at Mount Isa.
Table 3
ARDMORE NORTH ANOMALOUS ROCK CHIP SAMPLES
Sample Location / AGD 66 Anomalous Results (ppm) Comments
East North Cu Pb Zn Ag
11858 338904 7599213 556 1010 Ironstone; 10m wide
11859 339100 7598615 1080 Termite Nest Sample
11860 338986 7598973 502 768 Ironstone; 20m wide
11861 339054 7598613 564 1270 Ironstone; 15m wide
11862 338912 7599091 1050 Ironstone; 10m wide
11863 339098 7598466 1390 835 770 4.7 Ironstone; 10m wide
An RC drilling program, comprising 6 to 8 holes for 1100 ‐ 1500 metres, is planned to test 700 metres strike length of the iron rich sediments for copper, lead, zinc, silver sulphide mineralisation, commencing in late May 2008.
4. IRON OXIDE COPPER GOLD EXPLORATION KAMARAN DOWNS EPM 15389
Kamaran Downs EPM 15389 is located about 400km S of Mount Isa. The ground was acquired because of the proximity to the major NW trending Toomba Thrust Fault and because it is near the intersection with the WNE trending Arunta Fault at the "Diamantina Hinge Zone" (see Figures 6 & 7).
The targets are discrete magnetic anomalies close to the Toomba Fault and co‐incident magnetic / gravity anomalies that are considered to be prospective for large scale Iron Oxide Copper Gold (IOCG) mineralisation such as Olympic Dam. The Proterozoic basement IOCG targets are interpreted to be beneath 350‐450 metres of younger sedimentary
cover. No previous drilling, apart from Government water bore drilling (which intersected basement), has been carried out in this region.
Krucible will carry out ground magnetic traverses over the magnetic anomalies, followed by geophysical interpretation, to assist in positioning of the drill the holes. The Queensland Government undertook extensive magnetic and gravity surveys over this region in 2007
Krucible has recently submitted an application to the Queensland Department for Mines & Energy for a rebate on drilling offered by the Government as part of the "Collaborative Drilling Initiative". This is designed to encourage drilling of new potential targets in remote areas where little previous exploration has been carried out. The Company plans to drill 4 rotary / diamond holes to depths of 500‐600 metres. If the application is successful, Krucible will be eligible to receive up to $150,000 as a part re‐imbursement of direct drilling costs. Results of the tender process are expected to be released in June 2008.
Drill rigs are currently being sourced for this important program and it is hoped to commence the drilling before October 2008.
5. DIAMANTINA OROGEN NEW KRUCIBLE EPM APPLICATIONS
The Company applied for 10 new EPMs in March 2008 covering about 4500 sq.km. (see Figure 7). This was previously announced on the ASX on 18 March 2008.
These tenements are not expected to be granted for 12‐18 months but are considered to be an important future acquisition for Krucible since they cover a number of co‐incident magnetic/ gravity anomalies along the NE "Diamantina Orogen" trend. The geophysical anomalies have been outlined from the recently released Queensland Government regional surveys. Structural zones of strong dislocation and uplift are interpreted and this is
encouraging for high heat flow fault zones, which may focus mineralised fluids into structural traps.
Krucible considers that this ground offers a unique opportunity to explore for large scale IOCG Olympic Dam & Ernest Henry style ore bodies in Proterozoic basement beneath cover sediments as well as for uranium / vanadium and lead/zinc deposits in younger Palaeozoic sediments.
Research, modelling & interpretation of geophysical data will be undertaken in the next year to assist in defining target areas.
6. OTHER EXPLORATION AREAS
The Company continues to explore its granted tenements with field campaigns aimed at generating a pipeline of prospects. At this stage there are no additional significant results to report on those EPMs referred to in previous ASX reports and updates.
Here is another one, Krucible Metals (KRB). Will this be the next MAK, RWD and MNM? Keep an eye on this, it is still under the radar :-)
Market cap: about 22 million?
Cash: 5+ million
Unlisted options: 3,100,000
Shares total: 52,959,100
Current share price: 40c
Chart:
http://bigcharts.marketwatch.com/interchart/interchart.asp?symb=AU%3Akrb&draw.x=54&draw.y=17
______________________
QUARTERLY ACTIVITIES REPORT - MARCH 2008
HIGHLIGHTS
EXPLORATION
* Phosphate prospects‐ Krucible has made considerable progress during the quarter in advancing the phosphate potential on its 100% owned ground in the Georgina East Sub Basin. This ground is located close to the Incitec Pivot Limited owner‐operated mine at Phosphate Hill, NW Queensland, which is a leading producer of high‐grade processed phosphate for fertilisers. Historical drilling in and around Krucible tenements produced phosphate intersections comparable to the mined grades at Phosphate Hill. Also limited
surface sampling by Krucible produced anomalous phosphate assays up to 5% P2O5. Drilling of phosphate target areas is planned for the next quarter, subject to site clearances.
* Mt Isa style basemetals prospect‐ RC percussion drilling is planned in May‐June 2008 at the Ardmore North prospect where anomalous values in silver, copper, lead & zinc have been returned from highly ferruginous rocks, similar to the sedimentary package hosting the world class Mount Isa mines.
* Iron formation‐hosted copper‐gold prospects ‐ Anomalous rock chip values up to 10.6 grams per tonne gold and 13.2% copper have been returned from the Merlin Tank EPM in an area of poor outcrop, located about 16km west of the Starra and Swan copper/gold deposits held by Ivanhoe Mines. Systematic soil and lag sampling is planned to define possible drill targets for copper / gold mineralisation at this prospect
* Iron oxide copper‐ gold [IOCG] prospects ‐ The Company has applied for Queensland Government financial assistance, under the "Collaborative Drilling Initiative" designed to encourage drilling of new targets in under explored areas. If successful Krucible could receive up to $150,000 to defray direct drilling costs for the Kamaran Downs IOCG Project in the frontier Diamantina region of west Queensland
* Frontier Exploration prospects‐ Ten new EPMs have been applied for covering newly defined gravity and magnetic anomalies along the Diamantina Orogen Fault Zone and the Diamantina Hinge Zone. The Company values these tenements as having significant copper gold potential in a relatively unexplored region of Australia.
*Krucible is negotiating drilling contracts for both shallow prospect definition and deeper targets for commencement as soon as rigs are available.
* Krucible holds 14 EPM’s and 15 EPMA’s for approximately 12,000 km2. The Company owns all these tenements forming the Krucible portfolio 100%.
CORPORATE
* Krucible had cash resources of $5,471,000 at the end of the quarter
* Shares and options owned by the directors of Krucible in the Company are unencumbered and not subject to any loan obligations
Project Activities Report
1. PHOSPHATE POTENTIAL (GEORGINA EAST SUB BASIN)
Background
Due to sharply increasing market value of phosphate for ammonium phosphate fertiliser over the last 12 months, Krucible is actively investigating the potential for economic phosphate (P2O5) deposits within its wholly owned tenements, Corella Bore ‐ EPM15572 and Merlin Tank EPM 15811.
One of the western world's largest producers, Incitec Pivot Limited, mines phosphate rock in the range of 15‐25% P2O5 at the world class Phosphate Hill mine [PHM] near Duchess and 150 km SSE of Mt Isa. Krucible’s tenements, especially the Corella Bore tenement is known to have Cambrian age phosphate rich rocks in similar setting to Phosphate Hill geology. (see Figures 2 & 3).
The phosphate rich rock is within sedimentary units that are beneath shallow cover and will require drill testing to determine their extent and P2O5 grade
The Company plans to carry out a series of work programs, including drilling, in the next 6 months to determine the possibility of an economic resource being discovered in the Corella Bore and Merlin Tank EPMs.
Following is a summary of results of research on previous work as well as results from limited follow up field investigation carried out by Krucible thus far.
Previous Phosphate Exploration
A number of companies explored for phosphate in the Mt Isa‐NW Queensland region during the 1960's and 1970's.
In addition geological mapping programs were carried out by the Queensland and Australian Government to better determine the conditions for phosphate deposition and enrichment and therefore the likely sites for ore grade phosphate.
Mines Exploration Pty Ltd, in 1966‐68, detailed a number of P2O5 occurrences that are located within or close to Krucible's Corella Bore EPM15572. At the D10 Prospect, channel sampling of surface outcrop returned 23metres @ 12.5% P2O5, including 2m @ 26%. This D10 Prospect is within EPM15572 and located 11.5km north of PHM. In addition drilling by Mines Exploration at Phosphate South returned intersections up to 7m @ 26% P2O5 ‐ this is
about 500m from the boundary of Corella Bore EPM 15572.
Mapping by the Geoscience Australia (de Keyser, BMR Bulletin 1968/67), located a phosphorite occurrence on the east side of the Cambrian Georgina East Sub Basin at Pomegranate Creek (see Figure 3). This is close to the northern boundary of Krucible's Merlin Tank EPM 15811.
Newmont Proprietary Limited drilled 14 shallow wide spaced holes with average depth 30 metres, south of Pomegranate Creek in 1975. Sub economic phosphate was intersected in a number of holes within the phosphatic Beetle Creek Fm., with intersections up to 2m @ 11.5% P2O5 (see Figure 3).
Sons of Gwalia Ltd (SOG) also drilled in the Merlin Tank area searching for copper& gold mineralisation in the Proterozoic basement. Although they only analysed 10 of about 80 holes for phosphorous, these returned up to 5%
P2O5 from the Cambrian sediments in the prospective corridor (see Figure3). Field investigation by Krucible has shown that drill chips remain around most of the SOG holes and a total of 49 old holes have recently been sampled by Krucible and submitted for phosphate analyses. The analytical results are expected in 3‐4 weeks.
It is important to note that very little exploration for phosphate, outside of the PHM Mining Leases, has taken place in this region over the last 30 years to 2007, due to the prevailing poor economics of phosphate mining and lack of availability of acid and nitrate gas for enrichment for fertiliser use.
This has now changed with the infrastructure for PHM integrated phosphate fertiliser manufacturing facility.
Krucible’s Phosphate Sampling
Some limited follow up field sampling has taken place and results of this are considered to be very encouraging.
4.79% P2O5 was returned from shale thought to be close to the D10 Prospect locality north of PHM and 5.16% P2O5 was returned from water bore (?) chips at PHM South, close to the abutting ground of the Corella Bore EPM 15572 and the Phosphate Hill Mining Lease. Details of the sampling are shown in the Table 1 below.
Table 1
CORELLA BORE ANOMALOUS PHOSPHATE SAMPLES
Sample Location / AGD 66
Anomalous Phosphate
Samples Comments
East North P P205
20863 394359 7591881 2.09% 4.79% Near D10 location 12km N of PHM
20873 394250 7594300 2.26% 5.16% Water Bore chips 2km S of PHM
Future Phosphate Work by Krucible
Compilation and interpretation of previous and current work will be carried out on the prospective corridors outlined on Figures 3 & 4. This will be followed by lag and rock chip sampling as well as mapping over target areas.
When all results have been collated, drilling will be carried out to better define possible zones of phosphate enrichment.
Before drilling commences native title clearance will need to be carried out by the traditional landowners‐ this is scheduled to take place in the next 3‐5 weeks and it is hoped that drill testing will commence in June 2008.
Should the Krucible exploration be successful this region is ideally situated for development because of the existing power grid, gas pipelines and the operating Queensland Government railway link to Mount Isa.
2. COPPPER GOLD EXPLORATION MERLIN TANK EPM 15811
The NE portion of this tenement is considered to be prospective for copper & gold mineralisation associated with demagnetised zones along major structures at Mistake Creek (see Figures 2 & 3). The Mistake Creek Prospect is located about 17km WSW of the large Swan copper/gold resource currently being drilled by Ivanhoe Mines Ltd. Recent Krucible rock chip sampling has returned maximum values (ppm) of 10.6 Au, 51.3Ag, 1110Co & 13.2%Cu.
Details of the anomalous results are shown on the Table 2 below.
Table 2
MERLIN TANK ANOMALOUS SAMPLES Mistake Creek Prospect
Sample Location / AGD 66 Anomalous Results (ppm) Comments
East North Au Ag Cu Co
50801 430100 7600800 10.6 5.7 862 Ironstone Outcrop 2m wide
50802 429450 7601005 527 1110 Manganese breccia 5m wide
50808 430920 7600554 51.3 13.20% Boulder float, Ironstone
visible secondary Cu close to EPM boundary
The results of sampling to date at Merlin Tank are considered to be very encouraging given the poor outcrop in the area and the limited drilling carried out to date. Most of the drilling carried out by SOG was further to the west, targeting magnetic anomalies in Proterozoic basement beneath Cambrian sediments.
Future work proposed for this area in the May‐July 2008 period includes soil & lag sampling followed by air core & percussion drilling.
3. MT ISA STYLE BASE METAL EXPLORATION ARDMORE EPM 15487
As reported previously, gossanous rock chips assayed up to 5830ppm lead from interpreted Mount Isa Sequence ferruginous sediments were located at Ardmore North located about 100km S of Mount Isa. These are close to previous shallow (9metres) RAB holes drilled by Getty Oil Ltd in 1984, which assayed up to 3550 ppm lead.
No known RC or diamond drilling has been carried out in this area.
Progress on the results of soil/termite nest sampling at Ardmore North was outlined in the Krucible ASX announcement on 18 March2008 (see Figure 5). Some follow up surface sampling has since been carried out as well as preparation for drilling that is scheduled for May/June 2008.
Anomalous results were returned from the rock chips with maximum values (ppm) of 4.7 silver, 1390 copper, 1080 lead & 1270 zinc ‐ see Table 3 below for details of the sampling. The strongly ferruginous sediments (after sulphides?), sampled at Ardmore North vary in width from 10 to 20 metres. This sedimentary package is considered to be similar stratigraphy to the rocks hosting world‐class basemetal mines at Mount Isa.
Table 3
ARDMORE NORTH ANOMALOUS ROCK CHIP SAMPLES
Sample Location / AGD 66 Anomalous Results (ppm) Comments
East North Cu Pb Zn Ag
11858 338904 7599213 556 1010 Ironstone; 10m wide
11859 339100 7598615 1080 Termite Nest Sample
11860 338986 7598973 502 768 Ironstone; 20m wide
11861 339054 7598613 564 1270 Ironstone; 15m wide
11862 338912 7599091 1050 Ironstone; 10m wide
11863 339098 7598466 1390 835 770 4.7 Ironstone; 10m wide
An RC drilling program, comprising 6 to 8 holes for 1100 ‐ 1500 metres, is planned to test 700 metres strike length of the iron rich sediments for copper, lead, zinc, silver sulphide mineralisation, commencing in late May 2008.
4. IRON OXIDE COPPER GOLD EXPLORATION KAMARAN DOWNS EPM 15389
Kamaran Downs EPM 15389 is located about 400km S of Mount Isa. The ground was acquired because of the proximity to the major NW trending Toomba Thrust Fault and because it is near the intersection with the WNE trending Arunta Fault at the "Diamantina Hinge Zone" (see Figures 6 & 7).
The targets are discrete magnetic anomalies close to the Toomba Fault and co‐incident magnetic / gravity anomalies that are considered to be prospective for large scale Iron Oxide Copper Gold (IOCG) mineralisation such as Olympic Dam. The Proterozoic basement IOCG targets are interpreted to be beneath 350‐450 metres of younger sedimentary
cover. No previous drilling, apart from Government water bore drilling (which intersected basement), has been carried out in this region.
Krucible will carry out ground magnetic traverses over the magnetic anomalies, followed by geophysical interpretation, to assist in positioning of the drill the holes. The Queensland Government undertook extensive magnetic and gravity surveys over this region in 2007
Krucible has recently submitted an application to the Queensland Department for Mines & Energy for a rebate on drilling offered by the Government as part of the "Collaborative Drilling Initiative". This is designed to encourage drilling of new potential targets in remote areas where little previous exploration has been carried out. The Company plans to drill 4 rotary / diamond holes to depths of 500‐600 metres. If the application is successful, Krucible will be eligible to receive up to $150,000 as a part re‐imbursement of direct drilling costs. Results of the tender process are expected to be released in June 2008.
Drill rigs are currently being sourced for this important program and it is hoped to commence the drilling before October 2008.
5. DIAMANTINA OROGEN NEW KRUCIBLE EPM APPLICATIONS
The Company applied for 10 new EPMs in March 2008 covering about 4500 sq.km. (see Figure 7). This was previously announced on the ASX on 18 March 2008.
These tenements are not expected to be granted for 12‐18 months but are considered to be an important future acquisition for Krucible since they cover a number of co‐incident magnetic/ gravity anomalies along the NE "Diamantina Orogen" trend. The geophysical anomalies have been outlined from the recently released Queensland Government regional surveys. Structural zones of strong dislocation and uplift are interpreted and this is
encouraging for high heat flow fault zones, which may focus mineralised fluids into structural traps.
Krucible considers that this ground offers a unique opportunity to explore for large scale IOCG Olympic Dam & Ernest Henry style ore bodies in Proterozoic basement beneath cover sediments as well as for uranium / vanadium and lead/zinc deposits in younger Palaeozoic sediments.
Research, modelling & interpretation of geophysical data will be undertaken in the next year to assist in defining target areas.
6. OTHER EXPLORATION AREAS
The Company continues to explore its granted tenements with field campaigns aimed at generating a pipeline of prospects. At this stage there are no additional significant results to report on those EPMs referred to in previous ASX reports and updates.