Breakaway has an acknowledged portfolio of quality mineral exploration projects, strategically located within two of Australia’s premier mineral districts – the Cloncurry District in North West Queensland, and the Leinster District in Western Australia.
While a large number of targets have been identified on all of the projects, Breakaway has adopted a copper – gold focus for its future exploration activities.
Re-commissioning of the Eloise Copper Mine in January 2011 together with a sustained increase in the copper price and robust market outlook provided a strong strategic imperative to ramp up copper exploration at the Eloise Exploration Project.
Accordingly, the Company is focussed on evaluating the potential of the highly copper – gold prospective Eloise Exploration Project, located within the Cloncurry District of North West Queensland - an area we believe offers the best chance for exploration success in the short term.
In recognition of this, the future of the Leinster District nickel projects within the Company’s exploration portfolio is currently being reviewed.
Following an initial major review of historical data for the Project, a host of bedrock copper targets were identified during early 2011 within a 20km radius of the Eloise Copper Mine. These targets are typically characterised by +1 per cent copper intercepts (up to 4 per cent copper), highly anomalous gold results, limited drilling and excellent extensional potential.
None of these targets have received meaningful exploration attention over the past 10-15 years, creating a significant opportunity for Breakaway in the current environment.
Drilling commenced at the Eloise Exploration Project in July 2011, initially with 5,000m of Reverse Circulation drilling being undertaken at four priority targets – Surprise Ridge, Roberts Creek, Sandy Creek and Coral Reef, with significant results received from two prospects, Surprise Ridge and Sandy Creek.
At Surprise Ridge, four holes were drilled to test the target with significant intercepts including:
· 1m @ 31.7g/t gold and 7.10g/t silver from 114 metres; and
· 11.0m @ 3.42%zinc, 0.97% lead and 13.90g/t silver from 188 metres, including 2.0m @ 7.40% zinc, 4.04% lead and 57.40g/t silver from 193 metres.
The mineralisation remains open down-dip and along strike to the north, and warrants follow-up drilling.
Of potentially greater importance, drilling at Sandy Creek has identified a significant new copper system which displays strong geological similarities to the nearby Eloise Copper Mine. Drilling on 50 metre – spaced sections has now intersected mineralisation over a strike length of 600 metres to 120 metres vertical with significant intercepts including:
· 10m @ 2.0% copper and 0.47g/t gold from 121 metres including 3m @ 3.0% copper and 0.92g/t gold from 128 metres;
· 3m @ 2.2% copper and 0.47g/t gold from 146 metres;
· 1m @ 6.23% copper and, 0.52g/t gold, from 65 metres; and
· 3m @ 3.68% copper and 0.57g/t gold from 47 metres.
The mineralisation remains open in all directions and given the prospect’s close proximity to the Eloise Copper Mine, we believe that there is excellent potential to quickly generate an economic resource at Sandy Creek.
This will be a strategic focus for the Company in the coming months and diamond drilling to test the prospect’s depth potential is currently underway.
Following a strategic project review completed last year, a number of assets within our portfolio were identified as requiring either a longer lead time or additional external funding in order to realise value for Breakaway shareholders.
Consistent with the outcomes of this review, we concluded a joint venture with Aphrodite Gold to earn up to an 80% interest in the gold rights of the Scotia Nickel Project.
Aphrodite Gold has since completed out a 3,170 metre RC drilling program at the Chameleon prospect and reported some very encouraging high-grade results.