A new exploration target lays the groundwork for Iltani Resources to prove Orient West in Queensland could host Australia’s largest silver-indium deposit
Infill drilling to start this quarter with maiden resource due by the end of 2024
Exploration target to grow with additional drilling at Orient East and Deadman Creek
Special Report: As silver prices follow gold’s bull run to decade long highs, Iltani Resources has revealed an exploration target that if realised could see it hold the largest silver-indium resource in Australia.
The new exploration target for the Iltani Resources (ASX:ILT) owned Orient West prospect in Queensland includes 74-100Mt at 55-65g/t on a silver equivalent basis.
That includes a high-grade core at an 80g/t AgEq cut-off of 20-24Mt at 110-120AgEq.
Infill drilling will begin in the third quarter of 2024 at Orient West, with an initial mineral resource estimate due by the end of the calendar year.
Orient West is the first exploration target to be defined at the broader Orient project, but that should grow further once enough drilling has been done to define targets for Orient East and Deadman Creek.
“We are pleased to announce the Orient West Exploration Target and believe that this is a very strong indication that the Orient Deposit, comprising the Orient West, Orient East and Deadman Creek prospects, will be Australia’s largest silver-indium deposit,” Iltani MD Donald Garner said.
“Our Orient West Exploration Target of 74 to 100 million tonnes at 55 to 65 g/t Ag Eq. is based on 22 holes drilled to date at the prospect, which have also demonstrated a high-grade core at Orient West, reflected in an inclusive Exploration Target of 20 to 24Mt at 110 to 120 g/t Ag Eq. for the high-grade core.
“This Exploration Target is the first defined for the Orient Project, as Orient West is the most advanced of the three prospects. We expect to define an Exploration Target for Orient East and potentially Deadman Creek once further drilling is complete.”
Looking at these hits, ILT has serious potential at its Orient silver-indium project in Queensland. Pic: ILT
Upside in market and drill hits
The price of silver has lifted by around 30% this year to almost US$31/oz as demand for the metal as a safe haven commodity and in solar panels – silver demand is now around 50% industrial – has led traders to bet on the commodity.
Meanwhile indium, normally a by-product of zinc production, is also used in silver cells, LCDs and touch screens and is heavily supplied by China.
Orient is being effectively rediscovered by Iltani, having been first identified by old timers in 1886 and mined until 1924, 2km apart at both Orient West and East.
Queensland’s mining history books show it delivered 6600t of ore at 46oz/t silver and 40% lead. You’d be hard-pressed to find those grades now, but modern techniques make much smaller concentrations far more economic.
Met testwork has already shown Orient can produce a lead-silver concentrate of 48% Pb and 2250g/t Ag, and a zinc-indium concentrate of 47-48% Zn, 2000g/t In and 200g/t Ag.
Orient West is just the tip of the iceberg, with Orient East and Deadman Creek also ripe for exploration targets in future updates. Pic: ILT
So far the Orient West target has been identified through 22 reverse circulation drillholes over 4406m, 2773 assay results and both surface geological mapping and wireframing and 3D block modelling of its mineralised veins.
Diamond drilling was last completed in the 1970s by Great Northern Mining Corporation, data that was not used to estimate the exploration target.
That means there is plenty of opportunity for Iltani to find a substantial new bounty of the metals.
With Orient East only seeing 10 drill holes for ~1100m and hits like 38m at 190.4g/t AgEq and 41m at 107.7g/t AgEq, don’t be surprised if the exploration target gets a whole lot more substantial.
This article was developed in collaboration with Iltani Resources, a Stockhead advertiser at the time of publishing.
This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.
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