In May 2014, Collerina Cobalt Limited entered into an agreement to acquire an 80% interest in four prospective copper and gold tenements in North Sulawesi, known as the Gorontalo properties, from MMG Exploration Pty Ltd ('MMG') following MMG's decision to withdraw from Indonesia due to a change in their global exploration strategy.
This transaction was completed subsequent to the end of the financial year by a total cash payment of $200,000.
Upon completion of a bankable feasibility study on any of the tenements being acquired, MMG must elect to either:
- contribute towards expenditure of the subsidiary company holding title to the relevant tenement in proportion to its remaining 20% interest; or
- convert the remaining interest to a 2% net smelter royalty based on all production from the tenements.
The four Gorontalo properties, Tapadaa, Toluludu, Biyonga and Tahele, are located in northern Sulawesi, near the city of Gorontalo.
During 2016 the Company decided to drop two of the projects, Biyonga and Tahele, with available funding for the Gorontalo properties to be focused on Tapadaa and Toluludu.
The Gorontalo property IUPs (exploration licences) are currently in the exploration phase which expires in 2016 after which the IUPs can be converted to exploitation licences. Each project area contains zones of alteration and mineralisation identified by historic exploration activities and previous workers indicative of copper-gold porphyry and/or related epithermal-type gold and silver and skarn-type mineralisation. However, due to a lengthy forest access permitting process MMG was only able to drill the Tapadaa property and further basic exploration is planned by Collerina Cobalt Limited, including surface mapping, soil/rock sampling, trenching and ground geophysics, to define targets for drill testing.
Previous exploration by PT. Tropic Endeavour Indonesia (1971) identified the 6,450 hectare Tapadaa district through stream sediment sampling. Following limited exploration activities by others, including initial drill testing by BHP-Utah in 1980, in 2010 MMG completed surface exploration and a ground magnetic survey which defined an extensive alteration system mapped over 6.9 kilometres in length and up to 2.6 kilometres wide related to several mineralised zones. MMG completed six widely spaced drill holes to test modelled magnetic anomalies interpreted as porphyry-type deposit targets. Holes from the Lombongo, Lombongo North and Mogiwapo prospect areas returned wide intervals of anomalous (≥ 0.1% copper).
MMG's exploration focus was for large porphyry copper deposits and did not follow up related epithermal type gold targets identified within the licence area. This includes mineralised zones identified by surface rock chip sampling which returned up to 7.79 g/t gold.
There are no forest restrictions on exploration activities within the Tapadaa IUP.
Tapadaa property map from MMG showing mapped alteration zones and MMG drill hole locations with significant intercepts.
Previous exploration in the 5,029 hectare Tololudu property area has been undertaken by PT. Tropic Endeavour Indonesia (1971), BHP-Utah (1980) and Newcrest (1993). In 2011, MMG completed rock/stream sediment sampling which identified three prospect areas identified as Molalahu, Toluludu East and Tiluti representing porphyry-type, epithermal-type and skarn-type mineralisation respectively. Previous mapping at Molalahu defined a 1,400 metre by 860 metre area of exposed stockwork-type quartz veins coincident with potassic-type alteration. This area has not been drill tested, however previous rock chip sampling in the Molalahu area returned up to 0.27 g/t gold, 0.60% copper and 0.50% 4,980 ppm molybdenum.
This area has not been drill tested, however numerous rock chips from the area have returned significantly anomalous results including
- 10.60 g/t gold, 0.56% copper and 33.8 g/t silver.
- 0.27 g/t gold, 1.72% copper and 12.4 g/t silver.
Exploration activities have commenced in the Molalahu prospect area where there are no forestry restrictions.