Minerals explorer Pursuit Minerals (ASX:PUR) has struck a zone of major zinc and lead mineralisation at their north Queensland Bluebush project, with zinc mineralisation of over 7%.
The discovery, in the fourth drill hole of Pursuit’s drilling program at Bluebush, points to the possibility of a significant zinc resource within the prospect which hosts one of the largest zones of zinc mineralisation in Australia, with 120km2 of confirmed mineralisation.
Pursuit Minerals Managing Director Jeremy Read said this fault zone mineralisation, when taken together with other discoveries at the site, showed characteristics comparable with the super-giant zinc deposits at the nearby Century mine and Macarthur River mine in the Northern Territory.
“The mineralisation in the fault zone in drill hole BB04-17 is zinc dominated with values in excess of 7% zinc,” Mr Read said.
“This represents the most significant mineralisation we have discovered at the site so far.
“We had already identified the potential for a really promising zinc mineralisation in drill hole BB03-17, and now we will look to building on these discoveries as we drill between and around these recent drill holes.”
The Bluebush project is located in the Mt Isa Super Basin, the world’s best base metals province, 72km northeast of the now closed Century mine and its associated infrastructure. The Century mine was, until its recent closure, Australia’s largest open pit zinc mine.
“Having relisted on the ASX just over a month ago, we set out to discover a focal point to the massive zinc mineralisation system at Bluebush, and the latest results from this year’s drilling program mean we have achieved our objective.
“Now that we have identified a focal point of the system, we will continue our drilling program in 2018 to see if we can locate a world-class zinc orebody that we are increasingly confident of finding at Bluebush.”
A recent report from analysts Morningstar indicated that Pursuit Minerals stock may be undervalued at its current price of $0.24 per share, with the report indicating a fair value of $0.38.
“We have brought some really high quality assets into our portfolio, including our Bluebush project,” said Mr Read.
“The market is right for zinc at the moment, which is why we have interests in two zinc projects in the Mt Isa Super Basin.
“We recently commenced drilling at our Paperbark project located just 25km from the Century mine, which also shows signs of a promising copper deposit.
“We’re excited to continue our drilling program on these promising projects.”