Degrmen Gold-Copper Porphyry Project
Location: Serbia
• The Degrmen porphyry represents a typical calc-alkaline gold-copper porphyry style of deposit, with a subvertical pipe-like geometry, intruded into an andesitic volcanic and volcaniclastic sedimentary sequence.
• The mineralized porphyry system is associated with a series of hornblende-phyric diorite porphyry stocks and dykes.
• Gold and copper in outcrop and diamond core is associated with potassic alteration which is centered on the diorite porphyry stocks. Better grades are associated with denser quartz-magnetite-chalcopyrite vein networks or with hydrothermal breccia together with the introduction of hydrothermal K-feldspar.
• A sequence of mineralized stocks have been identified with the oldest carrying the better grade and younger stocks successively less mineralized.
• Intense phyllic alteration lies at higher elevation and surrounds the mineralized rocks. Local areas of enhanced gold but low copper are present within the phyllic halo close to the potassic zones.
• The Degrmen gold-copper porphyry measures some 1,000 meters by 350 meters, where it is exposed at surface, and has been traced to a vertical depth of approximately 400 meters to date and remains open at depth.
• The Degrmen Porphyry Project is located in southern Serbia, approximately 220 km from Belgrade and 96 km by road from the regional centre of Nis.
Access to the area is excellent, via sealed roads, together with a well-developed secondary road network within the project area. The rail line is located approximately 3 km west (down gradient) from the project area; reticulated power and water, similarly, pass close to the project area. See Figure 3 for an overview of the well-established infrastructure setting at Degrmen.
• The Degrmen Porphyry Project area lies within the Lece Volcanic Complex of southern Serbia; the second largest magmatic complex in Serbia after the Timok Magmatic Complex. The Degrmen licence area has been previously mapped by the Serbian State and this work also included limited exploration diamond drilling. In total, twelve vertical diamond drillholes, ranging from 125 meters to 205 meters depth (average hole depth of 194 meters), were completed at Degrmen between 1984 and 1987.
• Historic exploration outlined a large 3km by 2km hydrothermal alteration within the Degrmen exploration license area. Dunav has confirmed the size of the alteration system with ground magnetic, soil geochemical, trenching and geological mapping programs. Importantly, Dunav has now defined, with diamond drilling, a zone of potassic alteration associated with quartz-magnetite-chalcopyrite stockwork veining that extends over a currently defined area of 1,000 meters by 350 meters.
• For comparative purposes it should be noted that the Kiseljak copper-gold porphyry deposit (located 20 km southeast of Degrmen) was initially outlined at surface by trenching and soil geochemical programs together with geological mapping, over an area of 800 meters by 300 meters. The initial Kiseljak copper-gold mineral resource, part of the Tulare Porphyry Project, which was prepared by AMC Consultants Limited (UK), an independent mining consulting firm has been estimated at 300,500,000 tonnes grading an average of 0.27% copper and 0.26 g/t gold in the inferred resource category for 1.8 billion pounds of copper and 2.5 million ounces of gold, using a 0.25% copper equivalent cut-off.
• Dunav has selected two, large, representative, composite samples from its diamond core material from the Degrmen Porphyry Project for initial metallurgical characterization test work focusing on flotation. The composite samples have now been dispatched and received by SGS Cornwall. Final test work results are expected during Q4 2013.
