Introducing new concepts in the global search for extensions of major land-based mineral domains beneath shallow water. Spencer Metals initiates tenement coverage over large unexplored and highly prospective area of Gawler Craton for Iron-Oxide-Copper-Gold deposits.

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Figure 1

» Figure 1. Spencer Metals’ copper-gold project, South Australia.
Black dots are areas of interest/prospective areas identified for follow up. Green bubbles are proportional to contained copper in known deposits.

» Figure 2. Copper belts and size of deposits.
Note the very large “gap” in South Australia between largest and next biggest copper deposit. Larger deposits remain to be found in South Australia. (as at June 2014)

» Jack-Up Rig
(not Spencer Metals asset)

New frontier domains for metals

In the continued search for metals, global mining companies are accelerating the search for new domains hosting iron oxide-copper-gold deposits. Exploration is now being directed to extensions of major land-based mineral domains beneath shallow water. Spencer Metals has identified potential in the Spencer Gulf for Iron-Oxide-Copper-Gold (IOCG) deposits in the highly prospective Gawler Craton. The target areas are located under the relatively shallow waters (5-30 metres) of the Spencer Gulf with expected minimal regolith or barren rock cover. As this is an unexplored and unappreciated part of a premier IOCG belt, the opportunity for a major discovery is considered to be good.

Iron-oxide-copper-gold deposits

Iron-oxide-copper-gold deposits ("IOCG") are a well-recognized class of mineral deposit. Much of the exploration for this class is focused in South Australia's Gawler Craton, the planet's premier and most fertile IOCG belt – a belt that includes the giant Olympic Dam copper-gold-uranium deposit, the major copper-gold Prominent Hill deposit, the Carrapateena copper-gold discovery and the exciting new copper-gold discovery at Hillside on the Yorke Peninsula. All the majors hold strong ground positions; and BHP Billiton in particular is aggressively strengthening its ground position by acquiring exploration licences from juniors.

To date, with the exception of exploration by BHP (one drill hole in 2001) and Phelps Dodge (five drill holes in mid 1990s) in the Spencer Gulf, exploration for IOCG deposits in South Australia has focused exclusively on land.  Spencer Metals has assembled a strategic and contiguous package of 14 tenement applications covering 9,800 square kilometres in the Spencer Gulf. Spencer Metals will become the major landholder in the Olympic Dam copper-gold province when the tenements are granted, which is expected shortly.

Strategic technical links, concept mining and infrastructure

Following the initial concept identified by Spencer Metals, a world-leading expert and proven 'Tier One' IOCG ore finder was commissioned to assess the prospectivity of the geology below the Spencer Gulf. He subsequently identified 12 target areas. Spencer Metals also has links to the world's best research institutions, and a Technical Advisory Panel of world-leading geologists, biologists, geophysicists and marine engineers. The project area is ideally located close to Australia's mining and smelting infrastructure, thus offering significant commercial advantage. It is located outside the Woomera Prohibitive Area. The Company commissioned an international mining consultancy company to undertake a desk-top conceptual mining study. The study concluded… "it is likely to be practical to mine a large copper-gold orebody by underground methods beneath the seafloor".

This project is about the discovery of the next "Nation building" ore deposit in Australia. It's time for one!