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Sillitoe, 2010 - Avala Resources Ltd.

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Thought on the porphyry poten-al beneath<br />

lithocap at Kuruga<br />

Prepared for <strong>Avala</strong> <strong>Resources</strong> d.o.o<br />

March 5, 2011<br />

Richard M. Tosdal, Ph.D., Pgeo<br />

Picacho Ex L.L.C.


KUDD-­‐<br />

034<br />

KUDD-­‐<br />

005<br />

KUDD-­‐<br />

009<br />

Map courtesy of Ivan Strambanovic, <strong>Avala</strong> <strong>Resources</strong>, March 2011<br />

Geology of the northern end of<br />

the Kuruga lithocap, Timok area,<br />

Serbia<br />

Area is underlain by a series of inferred<br />

supracrustal andesi@c volcanic, volcaniclas@c<br />

and tuffaceous rocks<br />

Extensive advanced argillic altera@on has<br />

converted much of the high topography to a<br />

silica±alunite±pyrophyllite lithocap.<br />

Significant hydrothermal breccia is present<br />

and the surface and in the historical drilling.<br />

3 drill holes were examined; KUDD-­‐005 and<br />

KUDD-­‐009 were drilled on the north into the<br />

mineralized part of a breccia complex;<br />

KUDD-­‐034 explored the poten@al for a deep<br />

porphyry Cu system on the SW corner of the<br />

area.


<strong>Sillitoe</strong>, <strong>2010</strong><br />

What is seen in the Kuruga deep drill hole<br />

(KUDD-­‐034)?<br />

Quartz – pyrophyllite?-­‐kaolinite (supergene)<br />

at 33m<br />

Serici@zed gusano textured<br />

qtz-­‐pyrophyrllite rock @ 57m


<strong>Sillitoe</strong>, <strong>2010</strong><br />

Sericite-­‐chlorite overprint on 2nd Kuruga KUDD-­‐034<br />

bio@te @213m<br />

Sericite-­‐chlorite overprint on pervasive 2 nd<br />

bio@te-­‐magne@te @285m


<strong>Sillitoe</strong>, <strong>2010</strong><br />

Kuruga KUDD-­‐034<br />

Chlorite-­‐sericite pyrite overprint<br />

on 2 nd bio@te-­‐magne@te @288 m<br />

Anhydrite-­‐pyrite vein with bleached<br />

chlorite-­‐bearing selvage @330m


<strong>Sillitoe</strong>, <strong>2010</strong><br />

Kuruga KUDD-­‐034<br />

Groundmass feldspar overprinted by<br />

anhydrite-­‐pyrite-­‐chlorite @428m<br />

Transi@on from pervasive 2 nd bio@te-­‐magne@te to “unaltered” host<br />

hornblende diorite over 5 cm @460m


<strong>Sillitoe</strong>, <strong>2010</strong><br />

KUDD-­‐034<br />

What part of a porphyry system might the deep<br />

Kuruga drill hole KUDD-­‐034 have encountered?<br />

From top to ~462 m depth, the drill hole passed through rocks showing<br />

the typical hydrothermal silicate altera@on assemblage characteris@c of<br />

a porphyry Cu hydrothermal system.<br />

However, there was a remarkable lack of quartz veins as well as Cu-­‐Fe<br />

sulfide minerals. The overall grade is likely low, perhaps in the 0.1+% Cu<br />

from the serici@c zone through the K silicate (potassic) altera@on zone.<br />

Pyrite where present is replacing Fe-­‐bearing minerals (2 nd bio@te and<br />

magne@te) that form a pervasive replacement of mafic phases as well<br />

as veins<br />

Pyrite is also associated with anhydrite.<br />

The transi@on in the drill core from intensely altered to almost<br />

unaltered is very sharp (over 5 cm); sharp lateral gradients are expected<br />

as hydrothermal fluid flow on the margins will be largely ver@cal and in<br />

the case of the drill hole based on grain boundary diffusion due to the<br />

lack of significant veins.<br />

Taking all the observa@ons suggests that the drill hole KUDD-­‐034 may<br />

have just cut the pervasive altera@on that extend outside the Cu shell<br />

(dashed line on cartoon to lej).


KUDD-­‐034<br />

Loca-on of KUDD-­‐034 with<br />

respect to soil Mo geochemistry<br />

Molybdenum forms a low grade shell (9 ppm<br />

Drill hole was collared at the southern end<br />

of the area of anomalous Mo and<br />

oriented easterly (shown approximately in<br />

pale green).<br />

Collec@vely, the soil geochemistry and the<br />

rocks in the drill hole suggest that the<br />

main por@on of a poten@ally mineralized<br />

porphyry may lie to the north of the<br />

KUDD-­‐034.<br />

Map provided by Ivan Strambanovic,<br />

<strong>Avala</strong> <strong>Resources</strong>, 2011


Anatomy of a hydrothermal<br />

breccia<br />

In general, hydrothermal breccia show systema@c facies.<br />

There is a core of highly brecciated material. Where<br />

fluidiza@on has been intense, the matrix consists of rock flour<br />

(finely milled rock) with clasts of varying sizes. In a single<br />

stage breccia, clast sizes increase in size and angularity<br />

toward the margin. Rocks immediately outside of the breccia<br />

are crackled, that is fractured in place and essen@ally can be<br />

fit together as a jig-­‐saw. Inter-­‐clast displacement and<br />

rounding increases toward the breccia.<br />

Mul@-­‐stage breccia have complex overprin@ng facies from the<br />

subsequent events.<br />

Breccia nucleate at depth and propagate upward un@l the<br />

energy is dissipated, thereby forming conical body. The roof<br />

rocks are cut by fingers of crackle breccia to rock flour breccia<br />

which represent the upward propaga@on of the larger body.<br />

Areas of maximum permeability are along breccia margins;<br />

complex when mul@ple breccia bodies present.<br />

Where they breach the surface, they form dis@nc@ve<br />

volcanic-­‐like features (see next slide)


Anatomy of a hydrothermal breccia that vented to the surface<br />

Hydrothermal breccias that breach the<br />

surface some@mes are called diatremes.<br />

However that term is largely reserved to<br />

breccias formed from magma@c or<br />

phreato-­‐magma@c processes whereby<br />

magma expands catastrophically to<br />

excavate a conical crater. In hydrothermal<br />

and magma@c-­‐related breccias, the<br />

excavate cone is filled with material that<br />

was not ejected and that falls back into the<br />

crater.<br />

Breccia facies are similar to those in<br />

hydrothermal breccias but in magma@c<br />

breccias there is juvenile material in the<br />

form of irregular ameboidal shaped clasts.<br />

Permeability will be greatest along the<br />

breccia margins, or where mul@ple<br />

breccia@on events are superposed.<br />

The cri@cal criteria required to dis@nguish<br />

interac@on with magma is the presence of<br />

the juvenile clasts.


KUDD-­‐009<br />

KUDD-­‐<br />

005<br />

Kuruga breccia facies placed in<br />

context of simple hydrothermal<br />

breccia<br />

Clas@c rock with 0.5 ppm Au; KUDD-­‐009<br />

Tuffaceous horizon @32m; KUDD-­‐009


KUDD-­‐009<br />

KUDD-­‐<br />

005<br />

Auriferous crackle brecca forming feeder to<br />

overlying porous sediments; KUDD-­‐009<br />

Low Au grade cap over rock flour matrix<br />

breccia; KUDD-­‐009 @155 m


KUDD-­‐009<br />

KUDD-­‐<br />

005<br />

Marginal crackle breccia; KUDD-­‐005<br />

@ 23m with 1.93 ppm Au<br />

Alunite cemented rock flour<br />

breccia; KUDD-­‐005 @ 195m


KUDD-­‐009<br />

KUDD-­‐<br />

005<br />

Pyprite-­‐enargite cemente breccia margin;<br />

KUDD-­‐005 @ 70 m<br />

Mul@ple rebreccia@on with pyrite<br />

±enargite replacement of youngest rock<br />

flour; KUDD-­‐005 @ 225 m


KUDD-­‐009<br />

KUDD-­‐<br />

005<br />

Host Rocks to breccia<br />

Gusano (worm) texture in host<br />

rock — appears to be similar<br />

to many of the siliceous clasts<br />

in the hydrothermal breccia<br />

Relict igneous texture in rare clast<br />

sugges@ng breccia cuts plagioclase and<br />

hornblende phyric rocks at depth


What type of breccia underlies the northern part of the Kuruga<br />

property?<br />

Insufficient knowledge is available regarding the original style of breccia that forms the northern<br />

part of Kuruga. Drill hole KUDD-­‐009 appears to have drilled into the top of a breccia body,<br />

whereas KUDD-­‐005 was collared within a breccia margin. The laqer drill hole was collared at<br />

higher eleva@ons, and shows evidence of mul@stage breccia@on. An important observa@on is<br />

that the dominant clast in the breccia is silicified rocks, and thus essen@ally country rocks.<br />

Hence, trea@ng the breccia as a series of nested largely hydrothermal breccia lacking obvious<br />

magma@c input seems to be the most reasonable model at this date.<br />

Recognizing the mul@stage<br />

evolu@on of the breccia<br />

poten@ally is important,<br />

and should be clarified as it<br />

may play a role in<br />

mineraliza@on.


Some concluding thoughts<br />

1. Clearly there is evidence for considerable hydrothermal ac@vity at Kuruga. There is a deep porphyry<br />

evident as well as extensive hydrothermal breccia present.<br />

2. Gold in the lithocap is stratabound within a permeable tuffaceous horizon as well as within the<br />

crackle and jigsaw margins of the breccia.<br />

3. Copper in the lithocap is associated with a second (or third?) stage of breccia@on and is associated<br />

with enargite-­‐pyrite cement.<br />

4. No evidence has been seen to date to indicate that the breccias have a magma@c component. If<br />

this is true, then they represent the catastrophic volume expansion of the hydrothermal fluid. If<br />

this is true, there is no need for them to be located over the top of a porphyry-­‐style intrusion.<br />

Instead, they can be lateral to the intrusive center.<br />

5. The evidence for intense and pervasive K-­‐silicate altera@on in the deep drill demands a porphyry<br />

center at depth, as would be expected. What is not know is whether it is mineralized as well. A drill<br />

hole into the main part of the likely porphyry is warranted.<br />

6. Judging from the depth of sulfide in drill core and in the nearby Lipa system, the sulfide in the<br />

porphyry center is likely to begin around depths of 650 m RL, and extend to depth. This depth<br />

approximately corresponds to the depth of extensive and not overprinted K silicate altera@on in<br />

KUDD-­‐034.

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