Historic Drill Cores Reveal 14m at 1.12g/t Gold and 1.58% Copper in Capricorn Project
Lithium Energy Limited has identified promising Mt Morgan-style gold-copper mineralisation within its Capricorn Gold-Copper Belt Project in Central Queensland, supported by re-assayed historic drill cores. The company plans to fast-track exploration with advanced geophysical surveys and drilling.
- Identification of Mt Morgan-style hybrid gold-copper mineralisation
- Significant gold, copper, zinc, silver, and molybdenum intercepts from historic core re-assays
- Six priority exploration areas along a 30km strike of the Mt Morgan Intrusive Complex
- Plans for accelerated exploration including geochemical sampling, geophysical surveys, and 3D modelling
- Lithium Energy holds 51% interest with option to acquire remaining 49% by April 2027
Historic Legacy Meets Modern Exploration
Lithium Energy Limited (ASX, LEL) has announced a significant breakthrough in its Capricorn Gold-Copper Belt Project, located in Central Queensland. The company’s recent work has identified mineralisation styles analogous to the historic Mt Morgan Gold-Copper Mine, one of Australia's most prolific gold producers. This discovery is underpinned by a detailed reinterpretation and re-assay of historic drill cores dating back to 1980, which revealed substantial gold, copper, zinc, silver, and molybdenum grades.
A Hybrid Mineralisation Model
The Mt Morgan deposit is understood to be a hybrid system, where an intrusive gold-copper dominant phase overprinted an original volcanic massive sulphide (VMS) deposit formed on the ancient sea floor. Lithium Energy’s geological model supports this two-stage epigenetic process, offering a compelling framework to explore for repeats of this mineralisation style across the Capricorn Project’s extensive 30-kilometre strike length of the Mt Morgan Intrusive Complex.
Encouraging Drill Core Results
Re-assaying of two historic drill holes from the Upper Nine Mile Creek Prospect within the Capricorn Project has yielded encouraging intercepts. Notably, hole DDH77-07 returned 14.1 metres grading 1.12 grams per tonne gold, 0.12% copper, 1.45% zinc, 69.2 grams per tonne silver, and 20.5 grams per tonne gallium starting at 153.9 metres depth. Hole DDH77-15 delivered 6.2 metres at 1.58% copper, 5.41% zinc, and 65.9 parts per million molybdenum from 191 metres. These results reinforce the presence of a mineral system with characteristics similar to Mt Morgan’s historic orebody.
Multiple Priority Targets Identified
Lithium Energy has pinpointed six priority areas within the Capricorn Project that exhibit geological signatures consistent with Mt Morgan-style mineralisation. These prospects lie along the Dee Range VMS Zn-Cu-Au-Ag Belt and include the Upper Nine Mile Creek, Mt Alexander, Fab, Ajax/Lux, Fern Hills, and Upper Don prospects. The company’s strategy involves integrating modern geophysical techniques, including 2D and 3D modelling, with surface geochemical sampling to refine target zones ahead of drilling.
Strategic Positioning and Next Steps
Lithium Energy currently holds a 51% stake in the Capricorn Project, with contractual rights to acquire the remaining 49% by April 2027. The company plans to accelerate exploration activities, focusing on stakeholder engagement, ground reconnaissance, geophysical surveys, and staged drilling programs to test for large-scale gold, copper, molybdenum, and zinc mineralised systems. This approach leverages decades of historical data combined with modern exploration technologies to unlock the project's full potential.
Executive Chairman William Johnson expressed optimism about the findings, highlighting the potential for extensive mineralisation repeats that could rival the historic Mt Morgan Mine. The company’s consolidation of the tenement package and systematic exploration program position it well to advance this promising district-scale project.
Bottom Line?
Lithium Energy’s discovery of Mt Morgan-style mineralisation sets the stage for a potentially transformative exploration campaign in Central Queensland.
Questions in the middle?
- How will Lithium Energy’s upcoming drilling programs validate the hybrid mineralisation model?
- What are the timelines and capital requirements for acquiring the remaining 49% interest in the Capricorn Project?
- Could the identified priority targets lead to a resource estimate comparable to the historic Mt Morgan Mine?
