DIATREME RESOURCES LIMITED - ASX: DRX

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Description

Diatreme Resources Limited (ASX code "DRX") is a Brisbane based, highly active and diversified mineral explorer with advanced commodity projects in heavy mineral sands, copper, base metals and gold. The Company has very large exploration ground positions including identified resources, in both heavy mineral sands and copper. At present, the Company's principal focus is on conducting prefeasibility studies over its Cyclone HM Deposit in Western Australia along with exploration over a large porphyry copper/gold mineralised system near Clermont, central Queensland.

Eucla Basin Mineral Sands Project

The Eucla Basin is a large sedimentary basin located in the central part of the southern region of Australia. It extends over a vast area stretching from the southeast coast in Western Australia and from the southwest coast of South Australia northward through to the boundary of the Nullarbor Plain with the Great Victoria Desert. The basin contains continental and marine Cainozoic sediments ranging in age from 140 million years to the near present time. These sediments cover an area is in excess of 400 000 km2, both onshore and offshore beneath the Great Australian Bight of the Southern Ocean.

Arckaringa - Heavy Mineral Sands (South Australia)

Diatreme has a number of exploration licences and applications in the Arckaringa Basin of South Australia. The licences are located in the north-central region of South Australia around the margin of the Basin and approximately 150km north and north-west of Coober Pedy. 15 licences are included within the project, seven of which are granted. Previous exploration within the licence areas is limited to the construction of numerous seismic lines in the mid-eighties by Comalco Ltd and the completion of a regional program of stratigraphic mineral exploration holes (coal as primary target) along the seismic lines around the same time. A number of deeper oil exploration drill holes were completed by Comalco Ltd (around EL4113) in 1984.

The Company has commenced drilling for mineral sands within the tenements following initial reconnaissance. Favourable stratigraphic units for the development of heavy mineral strands have been identified in the western group of tenements. Further work is plannd during 2010.

Clermont Copper Project (Queensland)

The Clermont Gold Project is situated to the south, west and northwest of the town of Clermont in central Queensland. Diatreme is exploring for porhyry and stratabound bulk tonnage copper/gold targets over four exploration permits covering over 860 sq km. The project area covers numerous prospects including the old Peak Downs Copper Mine which is significant for its past copper production.

Bellfield Base Metals Project (Queensland)

Located in north Queensland, the Bellfield Project consisting of two granted tenements and a number of application areas is proving to generate new targets including Meso-proterozoic Iron Oxide-Copper-Gold systems, Broken Hill type Lead-Zinc-Silver systems and younger Permo-carboniferous breccia hosted gold systems. Two locations of primary interest have been identified in reconnaissance field work the Gilbert River Breccia and the Twelve Mile Breccia prospects. These prospects have previously been mapped and sampled, but never drill tested or surveyed with high resolution ground geophysics. The Company will continue to methodically conduct exploration over these Greenfield project areas into 2011.

Casterton Heavy Mineral Sands (Victoria)

The Company is awaiting grant of Exploration Licence No. 5034 prior to being able to undertake ground exploration which will include an initial scout drilling program.

Cape Bedford Heavy Mineral Sands (Queensland)

The Company has applied for Exploration Permit for Minerals (EPM 17795) covering approximately 544 km2 over the Cape Bedford/Cape Flattery area north of Cooktown, north Queensland. The area is dominated by an extensive Quaternary sand sheet which covers an area of over 500km2 and stretches inland from the present coast for approximately 10km and extends 50km from north to south. It is this sand sheet that represent the host for potential heavy mineral sands which have been identified by previous explorers and are present on the modern day beach.

Cape Flattery Silica Mines Pty Ltd runs a very large silica sand mining operation immediately south of Cape Flattery. The exploration permit application surrounds this mining area which has the highest production of silica sand for any mine in the world.

There has been periodic exploration over this area since the 1950's, looking primarily for silica sands, but also testing for other minerals. The majority of exploration to date has been achieved using augers to relatively shallow depths of generally five metres or less. Research into the area describes the general absence of heavy mineral sands from the shallow horizons, which have been the target of silica sands exploration, but heavy minerals have been more commonly located in the deeper horizons including zircon, rutile and ilmenite. These minerals will be the target of exploration once the application is granted.

Mine For

heavy minerals sands, gold, copper, molybdenum, iron ore, zircon, rutile, ilmenite

Location of operation(s)

Western Australia, Queensland, South Australia, Victoria

Australian Basins

Eucla, Arckaringa

Address

Level 2, 87 Wickham Terrace
SPRING HILL, QLD, AUSTRALIA

Phone

(61 7) 3832 5666

Email

Website

http://www.diatreme.com.au/

Last Updated

6/5/2011