Prospectivity

Previous Exploration

The Koa tenement remains largely unexplored due to the Karoo sediment cover. A better understanding of VMS formation, the favourable geological environment and major advances in airborne electromagnetic technology, make the covered Areachap Terrane a prime target for new discoveries.

Lukin Resources completed the first phase of an airborne magnetic and electromagnetic (AEM) survey at Koa in March 2021 (Figure 21 & Figure 22). The survey targeted a 29 km strike of the southern extension of the Areachap stratigraphic horizon (paleo seafloor) that hosts the Prieska VMS deposit. A total of 1,423-line km of flight lines covering 254 km2 or approximately 25% of the Prospecting Right area was completed.

Planned Exploration

Lukin Resources plans to execute a two-year exploration program targeting:

• Blind VMS deposits within the Areachap Terrane underlying the western part of the project area; and
• Epithermal/hydrothermal gold and copper deposits within the Kaaien sequence (that includes the Marydale greenstone sequence) underlying the eastern part of the project area. Several copper occurrences associated with the Kaaien inliers would be priority targets for follow-up.

After processing the Phase 1 airborne geophysical data, AEM anomalies that may represent sulphide mineralisation will be identified and prioritised for follow-up. The following exploration activities will be completed over the next two years:

• Follow up of first order EM anomalies with ground-based high-powered fixed loop electromagnetic (FLEM) surveys; and

Reconnaissance drilling of first order EM conductors to confirm the nature of the conductors. The proposed exploration programme is estimated to cost AUD 940,300 to be expended over a 2-year period.

The work program will translate into an exploration expenditure of AUD 940,300 at Koa over the next two years.