The Kroussou Project
ZINC-LEAD PROJECT, GABON, WEST AFRICA
Kroussou Project Earn-In Agreement
The Kroussou project is subject to a Earn-in Agreement (EIA) with Apollo Minerals Limited (Apollo Minerals, ASX: AON) for Apollo Minerals to earn-in an interest of up to 80% in the Kroussou zinc-lead project (Kroussou Project or Project) in western Gabon.
The EIA provides Trek with flexibility as to whether to maintains a direct interest or convert its residual interest to a royalty. Trek will not incur any further expenditure in relation to the Kroussou Project until Apollo Minerals completes its earn-in obligations when a separate decision will be made by Trek as to whether it participates to maintain a 20% interest, dilutes its interest or converts its interest into a 1% net smelter royalty.
Apollo Minerals is now the Manager of the Project and will determine all exploration programmes and other activities to advance the Project. The key terms of the EIA with Apollo Minerals are described in the ASX Release of 4 September 2019.
The Kroussou Project consists of one Exploration License, G4-569, covering approximately 1,500 square kilometres located in Ngounié Province, western Gabon, 220 kilometres southeast of the capital city of Libreville. The Exploration License was granted for three years and is subject to renewal in July 2018 for an additional three years.
Access into the Kroussou Project area has been greatly improved due to the presence of several logging companies operating in the area. New, high quality bitumen and all-weather unsealed roads lead into and out of the Project from Libreville. A small river port at Yeno, approximately 65 kilometres to the west of the Kroussou Project along a good quality road, is used by the timber and oil industries to barge equipment and product to Gabon’s main commercial shipping base at Port Gentil, approximately two days by river to the northwest of the Kroussou Project. This barge system presents a relatively cheap logistical solution for operations within the Kroussou Project to and from the main export facilities at Port Gentil. Much of the project area has mobile phone coverage. Gabon is a mature mining jurisdiction and as such has a supply of labour that is used to mining operations.
Geology and Mineralization
At the Kroussou Project zinc+lead mineralization is hosted in Cretaceous sediments on the margin of the Cotier Basin within preserved channels onlapping unconformable Archaean and Paleoproterozoic basement rocks. Work carried out by previous operators identified 18 base metal occurrences along an 85 kilometre strike length of the Project within exposed channels that offer very shallow, near surface targets close to the Archaean and Paleoproterozoic basement rocks. Only two of the 18 exposed channels have been drill tested by the Bureau de Recherches Géologiques et Minières (“BRGM”) historically, with both channels containing significant base metal mineralization. Trek believes there is potential for the discovery of further base metal mineralization within the remaining untested 16 channels and also further potential westward within the broader Cotier Basin.
Previous Work Carried Out on The Kroussou Project
Intermittent exploration was carried out on the Kroussou Project between 1962 and 1980, primarily by the BRGM, with latter work in partnership with the Gabonese Government organization known as COMILOG. The BRGM carried out surface geochemistry comprising soil samples (on a grid of 50 metres by 50 metres), rock chip sampling (largely along the drainage network where exposures are most prominent) and minor stream sediment work, focusing largely on regional targets.
Some geophysics, including ground based induced polarization and electromagnetic programs, were completed in order to identify any potential near surface mineralization. As a result of the compilation of the data received from this work, significant near-surface base metal mineralization was identified where drilling was carried out that was limited to a small portion of the target area. Approximately 400 very shallow holes (average depth of 16 metres) were drilled by the BRGM. The majority of the BRGM drilling was carried out on the Dikaki Prospect. Numerous shallow intersections of ore grade and width zinc+lead mineralization were returned. Some of the better intersections reported from the 1979-80 drilling included:
- 3 metres @ 23.3% zinc+lead from 15.9 metres
- 3 metres @ 21.2% zinc+lead from 0.9 metres
- 3 metres @ 7.8% zinc+lead from 13.6 metres
- 5 metres @ 6.2% zinc+lead from 3.9 metres
- 2 metres @ 4.9% zinc+lead from 3.85 metres
- 0 metres @ 8.2% zinc+lead from 9.4 metres
The BRGM drill holes confirmed multiple horizons of flat lying mineralization. Numerous intersections of massive sulphide were reported adding to the potential for significant zinc+lead mineralization at the Kroussou Project.
Historic intersections from 1977/78 drilling by the BRGM at the Niambokamba Prospect included:
- 0 metres @ 7.3% zinc+lead from 2.1 metres (NK82)
- 2 metres @ 4.8% zinc+lead from 9.9 metres (NK63)
- 1 metres @ 3.0% zinc+lead from 6.9 metres (NK74) including 5.6 metres @ 4.6% zinc+lead
Work Carried out by Trek
Trek has expended approximately US$1.2 million at the Kroussou Project on an initial drilling program to confirm historical results, soil surveying, mapping, rock chip sampling and a ground geophysical program consisting of induced polarization and NSAMT (Natural Source Audio Magneto Tellurics) methods. The geophysics targeted near surface open-pit orebodies. To date, the survey has indicated large anomalies corresponding with potential down-dip and along strike positions to known mineralization within the Dikaki Prospect area.
Rock chip sampling commenced in late 2016 and continues as part of a broader mapping program conducted at the Kroussou Project as well as to build on the work completed previously by Battery Minerals. Results have indicated that significant zinc+lead mineralization is present in not only the Dikaki Prospect but also at the Niamadbimbou Prospect located 15 kilometres to the south of Dikaki, at the Niambokamba Prospect located 5.0 kilometres to the north and at the Bimbome Prospect located 1.0 kilometre north of Dikaki. To date, significant rock chip sampling values obtained from these prospects include:
- MKR160B – 29.8% zinc+lead (Dikaki)
- MKR155 – 10.0% zinc+lead (Dikaki)
- MKR154A – 11.3% zinc+lead (Dikaki)
- MKR188 – 9.5% zinc+lead (Dikaki)
- MKR342 – 14.0% zinc+lead (Niamadbimbou)
- MKR356 – 5.5% zinc+lead (Niamadbimbou)
- MKR256A – 7.7% zinc+lead (Bimbone)
- MKR121B – 2.7% zinc+lead (Niambokamba)
In the first half of 2017, Trek carried out a conformational drilling program comprising nine holes totalling 451 metres within the Dikaki Prospect that was designed to confirm the presence of near-surface zinc+lead mineralization originally identified by the BRGM. Assays returned included:
|Drill Hole||From (m)||To (m)||Interval||Zinc+Lead (%)|
Trek completed a first pass and subsequent infill soil geochemistry program in October 2017. The results confirmed the presence of and upgraded the tenor of the soil anomalies from the first pass work completed earlier in 2017. A total of 7,177 samples were collected during the two programs across an area identified as high priority that stretched from the Ofoubou Channel in the south, north along the basin-basement contact for approximately 40 kilometres to the Silongo Channel with the infill completed at 50 metre by 50 metre spacing within anomalous regions. Several highly significant, high-order and large-scale anomalies across the Dikaki, Niambokamba and Bouamba high priority prospect areas were defined with coherent zinc+lead anomalies peaking at 3,156 ppm and 2,410 ppm, respectively, with approximately 13% of the samples assaying >500 ppm zinc+lead, 3.0% assaying >1,000 ppm zinc+lead and 1.0% assaying >2,000 ppm zinc+lead with anomalies forming the basis upon which the resultant surface geophysical program was undertaken. An aggregate total of approximately 20 kilometres of strike of soil anomalies at >500 ppm zinc+lead have been defined.