Terra Uranium identifies high-grade gold-silver-tin in historical data review of Ottery mine

Prospective new owner Terra Uranium (ASX: T92) has identified high-grade gold, silver and tin intercepts in a review of historical data from the Ottery tin mine in New South Wales.

The review’s analysis of drilling activities between 1983 and 2011 showed that the extent of mineralisation at the hard-rock mine had not been fully tested, particularly in broad low-grade zones between the main high-grade lodes.

Twenty holes drilled between 1994 and 2011 by Electrolytic Zinc – now part of Rio Tinto (ASX: RIO) – showed wide zones of tin mineralisation at the Crystal Tuff target, with a best assay of 203 metres at 0.057% tin from surface including 18m at 0.13% tin from 27m.

Significant results

Six reverse circulation holes drilled in 2007 in the centre of the prospective area returned significant shallow results including 42m at 0.35% tin from 15m, 36m at 0.26% tin from 29m and 42m at 0.38% tin from 31m.

Holes completed in 2007 and 2009 in the same area also returned strong results for gold and silver, with highlights of 24m at 2.01g/t gold from 48m including 3m at 11.25g/t from 48m, 11m at 13.8g/t silver from 130m and 27m at 24.2g/t silver from 28m.

The company believes the mineralised zone at Ottery is 300m long by 30m wide and extends vertically for at least 120m, with frequent intervals of more than 5% sulphides.

Further drilling

Terra executive chair Andrew Vigar said the company would work towards further drilling at the high-grade zones.

“The Ottery mine was not known as a gold or silver producer but our data review has shown notable results in both,” he said.

“Our exploration strategy in Australia has now expanded from just uranium to tin, silver and gold and the evaluation of past work at Ottery has highlighted significant drilling results for all three metals, which we are keen to pursue further.”

LCT Metals acquisition

Terra will conduct an initial exploration program once it completes the proposed acquisition of private company LCT Metals, which owns two exploration licences that house Ottery, the Castle Rag silver project and the Mole River silver-tin project.

Ottery is the largest historic hard-rock tin producer in the New England region, producing around 2,700 tonnes of tin oxide at an average grade of 2% during its lifetime.

Terra announced the acquisition last month and believes it will enable the company to expand its exploration strategy beyond uranium for the first time.

Mr Vigar said the Terra team would compile historical and existing data and plan a drilling program for the second quarter of this year, to be funded by a recent $500,000 share placement.