Lucas Hill is an untested highly prospective IOCGU target located 420 km NNW of Adelaide, 25km SE of Woomera and 100 km south of Olympic Dam (see map below) in South Australia and is not part of Tasman’s joint venture with Rio Tinto.

The target was identified on the basis of the following parameters:

• A discrete, probably basement-sourced gravity anomaly, apparently larger in area and of comparable strength to the Carrapateena deposit, 48km to the east northeast.

• An associated magnetic anomaly of comparable area to the gravity anomaly.

• A prime regional location – within the highest priority, IOCGU Potential Zone 1 as defined by Geoscience Australia.

• Coincident and aligned along a major west northwest tectonic lineament (Figure 1) as originally defined during WMC’s exploration that led to the discovery of Olympic Dam in 1975.

Geophysical modeling by Adelaide Mining Geophysics Pty Ltd indicates that the source of the gravity and magnetic anomalies at Lucas Hill is likely to be a significant body of quite dense material, becoming more magnetic at depth.

The modeled depth to this body is about 900 to 1000m, and it is undrilled.

Grants for exploration

The Department for Manufacturing, Innovation, Trade, Resources and Energy sought proposals from industry to undertake cooperative exploration drilling projects jointly funded by industry and the government’s PACE 2020 initiative.

The PACE Discovery Drilling 2012 will preferentially fund high quality, technically and economically sound projects that promote greenfield type exploration targets.

Grants are also available for petroleum and geothermal exploration projects.

The proposals will undergo rigorous assessment both internally within the department by a panel of geological survey officers, and externally by highly experienced and independent assessors.