The project is located just 4km from the company’s partially completed base metals concentrator at Chillagoe in North Queensland.
The intersections vindicate Mungana’s strategy to carry out further exploration at Red Cap to assess whether the deposit could provide a second source of ore feed in addition to the proposed King Vol zinc project, located 25km to the north-west of Red Cap. The King Vol project comprises 2.99Mt at 11.9% zinc, 0.8% copper, 0.6% lead and 29.9gpt silver.
Red Cap currently has Inferred Mineral Resources totalling 3.8 million tonnes at 4.8% zinc and 0.7% copper. This resource estimate does not include Red Cap’s Victoria deposit, from which five of the assayed intercepts are derived, or other potential deposits such as Cambourne, Belgravia and Tarantula.
Mungana managing director Tony James said the new Red Cap results confirm its potential to become Mungana’s second high-grade zinc project, located in close proximity to the base metal concentrate plant which requires completion.
"These assays support our view that there is potential for a high-grade strategy at Red Cap to complement the King Vol project," Mr James said.
"This view is strengthened by what we are seeing within the geology of the individual deposits at Red Cap, representing both the existing defined Mineral Resources and the significant exploration potential."
