Recent times have seen a number of porphyry copper-gold gold discoveries by junior to mid-tier explorers, with the most advanced being Xanadu (ASX: XAM, TSX: XAM) with their Kharmagtai and associated discoveries in Mongolia, and Solgold (LSE: SOLG, TSX: SOLG) with the Cascabel Project in Ecuador. In addition, Sunstone Metals (ASX: STM) has the Bramaderos Project, also in Ecuador, from which trenching has delieneated significant porphyry style mineralisation at surface, however for which drill permitting is awaited.
Entering this group is Gold Mountain, which is actively exploring the Wabag Project in the Central Highlands of PNG, just 75km from the world class 24Moz Porgera operation, and close to transport infrastructure. The Project is located over the fertile rocks of the Maramuni Arc, and on an interpreted NE trending lineament, both considered important controls on a number of the major PNG porphyry and porpyhry related copper and/or gold deposits.
Work at Wabag, which has had only minimal historic exploration, has to date identified three porphyry copper-gold prospects along an interpreted 7km long crosscutting NW trend, with these including Mongae Creek, K-Lam and Sak Creek - these are characterised by small scale artisanal alluvial gold mining and geophysical/geological/geochemical characteristics typical of porphyry mineralisation.
The most advanced is Mongae Creek, with the Company recently completing two diamond drill holes for 877.8m within a 1.6km x 1.2km zone of prospective rocks and geochemical anomalism.
The best intercept was 55m @ 0.11% Cu, with both holes intersecting porphyry style zoned alteration over their entire lengths. In our view the potential of this discovery cannot be understated - although the tenor of mineralisation of holes drilled to date is sub-economic, they provide a vector to higher grade mineralisation; porphyry systems can be very large and commonly the tenor of mineralisation is gradational from the margins to centre of the system.
The earlier stage prospects, which are yet to be drilled, have returned strongly anomalous rock chips and soils, including assays of up to 0.99% Cu and 2.01g/t Au in rocks from K-Lam.
Earlier activities had been focussed on Crown Ridge, with the Company originally looking to the mining of palaeo-placer mineralisation. Work as part of this has identified the epithermal gold potential of this area, with this including the presence of numerous gold/quartz nuggets with epithermal textures in creeks draining the prospect - the angular nature of a number of these also points to only short transport distances. Gold Mountain's activities at Crown Ridge will be to now find the hard rock source.
The Company has a comprehensive exploration programme targetting all key prospects over short to medium term. This includes significant drilling, and hence should result in steady news flow. To read our latest update on Gold Mountain please follow the link.