OD6 Metals targets untapped copper-zinc potential at Gulf Creek with new acquisition

Junior explorer OD6 Metals (ASX: OD6) has made an acquisition bid for the historical high-grade Gulf Creek copper-zinc project in New South Wales.

The volcanogenic massive sulphide (VMS) underground development and the nearby Murchison copper mine are within an exploration licence that covers 23.75 square kilometres along the Peel Fault near the town of Barraba, 550 kilometres north of Sydney.

Gulf Creek was last mined between 1896 and 1912 – returning average copper grades of between 2% and 6.5% from three main lodes – and has seen little modern exploration since two drill holes were completed more than 60 years ago.

Untested targets

The mineralisation is believed to be associated with magnetite and geophysics work has shown repeat structures to the north and west of the historical workings, which will form the basis of OD6’s initial exploration.

A review of data from a 2021 drone magnetic survey across Gulf Creek and Murchison has identified additional magnetic anomalies believed to contain sulphide bodies over 10km of untested magnetic VMS target horizon.

Results from induced polarisation geophysics over a small area surrounding the historic workings aligned with these targets, as well as indicating the potential for a more expansive copper-zinc system.

Private vendor

Under the terms of the proposed acquisition, OD6 will issue Gulf Creek’s private vendor a $200,000 cash payment (inclusive of a non-refundable $50,000 deposit) and 6 million fully paid ordinary OD6 shares.

It will also provide deferred consideration of $200,000 in cash or additional shares upon commencement of a Phase 2 drilling campaign.

OD6 will need to seek shareholder approval for the deferred shares within 60 days of the campaign milestone being reached.

Phase 1 drilling

OD6 will commence Phase 1 drilling at Gulf Creek in early 2025 to test the area around the historical workings.

The company plans to drill 14 holes for up to 3,000m and will explore the use of down-hole geophysics as a suitable targeting technique for mineralisation within 100m of the drill holes.

Historic survey data will be re-processed and re-interpreted using the latest modelling techniques, with a view to conducting a new drone survey across the entire tenement.

Exploration potential

OD6 managing director Brett Hazelden said Phase 1 drilling aims to unlock the project’s greenfields and brownfields exploration potential.

“We intend to apply modern exploration technologies at Gulf Creek and have identified the link between copper and magnetite in the shallow historic workings,” he said.

“Copper is rapidly becoming a critical mineral in Australia [and] we are committed to rapidly advancing this early-stage prospect and exploring the opportunity to build a larger copper-focused portfolio.”