ASX Code: AVI

Viscaria D-zone Fe-Cu project, Kiruna, Sweden

Overview 2011
Quentin Masurel & Morvan Derrien
1

Northern Norrbotten: Simplified Geology

Simplified bedrock geology of northern Norrbotten County (Modified from Bergman 2001). KADZ KNDZ NDZ PSZ Karesuando-Arjeplog, Kiruna-Naimakka, Nautanen, Pajala Shear Zone.

Viscaria Regional Geological setting

Host Stratigraphy is part of Kiruna Greenstone Group Karelian age (2.4 1.96Ga) up to 4km thick pile of MORB-type basalt, felsic tuff & graphitic sediments Related to Jatulian (2.2 2.0Ga) rifting event Change from extensional to convergent deformational event, Svecokarelian orogeny (c. 2.0Ga) Late stage deformation confined to deep-seated Shear Zones Magmatic & Tectonic activity local hydrothermal activity as epigenetic mineralisation favourable setting for mineral deposits in shear zones

Avalon: Regional Exploration Targets

 Avalon exploration holding
       720km tenure, 100km of cumulative strike VMS deposits of + 20Mt @ 2% Cu Skarn deposits of +100Mt Fe +/- Cu IOCG deposits of +200Mt Gordon Kitchener
      High grade Cu and Zn, 10km of strike Anomalous Cu and Fe, 20km long target Geologically similar to Viscaria D Zone Numerous historic Cu mines and workings Extensive - 10km by 6km Consistent Cu geochemical anomaly in Till 50km north of Viscaria Large 8km by 9km gabbroic intrusion High amplitude magnetic and gravity anomaly Wide alteration halo of magnetite iron Anomalous Cu geochemistry 5km by 2km Targeted for VMS style copper and base metals

 Targets Criteria:

 Key targets:
Kurravarra Vittangijarvi

Karkejaure
   

Kallojankka
  

D Zone
4

Viscaria: Exploration Targets

Copper, 2010 PFS Resource
Resource Classification Measured Indicated Inferred TOTAL Mt 6.7 4.1 33.9 44.7 Cu % 2.47 1.76 0.83 1.16 Cu Metal ( 000t) 165 73 280 518

Magnetite-Copper, 2010 PFS Resource

Resource Classification Inferred Mt 9.0 Cu % 0.55 Fe % 26.9 Cu Metal ( 000t) 49 Fe Metal ( 000t) 2,415

Suolojoki

TMI image

Kiruna District: Simplified Geology

 Viscaria
 Discovery 4km from then 70yo. mining centre of Kiruna, <2m of moraine cover  Iron Oxide Copper Gold (IOCG) province that hosted the 3Bt magnetite-apatite deposits of Kiruna  15 years of production to 1997 12.5Mt of 2.29% Cu, 2% Zn & 0.5g/t Au 100,000tpa @ 26% Cu conc, (57Mlb pa) Cu metal

Pahtohavare
 7 years of production to 1997 1.68Mt 1.89% Cu & 0.88g/t Au 111,208t @ 25.5% Cu 6.6g/t Au Simplified Geology of the central in conc, 28,358t Cu & 740kg Au (modified from Martinsson 2010).
Kiruna area, with location of the Viscaria and Pahtohavare deposits;

Viscaria deposits consist of 4 stratiform minerals horizon hosted in tuffaceous sediments and foliated basaltic sills
6

Viscaria: Multiple Mineralised Horizons

D Zone

Local geology at Viscaria, with location of the Viscaria A, B, and D-zones to the Viscaria Formation and the Ltjrn horizons to the Peuravaara Formation (from Martinsson 1997). The Kiruna Greenstone Group: Skevaratjah Fm (SF), Adnamvare Fm (AdF) Pikse Fm (PiF), Viscaria Fm (ViF) & Peuravaara Fm (PeF).

Viscaria: Lithostratigraphy

Lithostratigraphy of the Viscaria profile, Kiruna Greenstone Group (from Martinsson, 1997). Kovo Group (KoGp) Skevaratjah (SFm), Adnamvare (AdFm), Pikse (PiFm), Viscaria (ViFm) & Peuravaara (PeFm) Kurravarra Conglomerate (KC).

Viscaria: A & B Zones

A Zone
Two stacked elongate, steep dipping lodes 3700m strike length, 400 600m depth, plunging south Alteration zone of 1.6km2 Semi-massive ore, cp+py+/-mt,po,(bn)+/-(ag) Intercalated with calcareous sediments In situ tonnage of 15.7Mt @ 3.54% Cu

B Zone
Multiple stacked elongate, steep dipping lodes Plunging south, with increase grade & width Veinlet, stringer cp+py+(po)+/-(mt) mineralisation Alkali alteration, sodic depletion & potassic enrichment Felsic (ash) host sediments
9

Viscaria A Zone
 A Zone Open Pit  Above historical Viscaria Copper Mine  2.5mt @ 1.4% Cu Reserve  Quality concentrate 28% Cu, 3% Zn, 45g/t Ag, 3g/t Au  Low contaminants  A Zone Deeps  Historical production of 12.5Mt @ 2.7% Cu  30km of decline and development  Drilled to >600m below surface  High grade lodes extracted  Remnants and lower grade zones 15Mt @ 1.8% Cu Resource

A Zone Longitudinal Section, looking west

10

Viscaria: A Zone VMS Mineralisation Model

Interpreted as syngenetic Copper of exhalative origin Supporting this model:
Extensive FW alteration Blanket shape of ore Layered structure of lodes Strong Cu/Zn zoning; Ore 92Cu:8Zn, Alteration 18Cu:82Zn Common, although variable martite content S isotope -8 to -10.4%; compare B +2.3 to 7.2%, D Zone -2% Europium (REE) normalised positive profile highly saline fluid inclusions

11

Viscaria D Zone
 2011/2012 DFS Drill Program  Wider and higher grade copper intersections than outlined from PFS resource model:  20m @ 1.1% Cu and 21% Fe  28m @ 1.9% Cu and 20% Fe (incl. 18m @ 2.1% Cu)  43m @ 1.4% Cu and 31% Fe  Drill objective that D Zone host significant Cu-Fe resource  Deeper holes completed to assess down plunge

12

Viscaria: D Zone Mt-Cu Ore

Drill coverage:
up to 1997 22 DDs; to 2011 120 extra DHs

Mineralised horizon:
1100m strike, steep dipping, 10-30m width, >230m depth shoots plunging south & widening with depth

Magnetite ore host:

structural corridor of strongly foliated basalts & welded breccia

Transition of ore stratigraphy:

cg massive mt overlying laminated fg mt Overprint with late barren carbonate alteration (depletion) front & crystalline marble veins Late oxidation associated with cross-cutting anastomosing shear
13

Viscaria D-Zone: Stratigraphic Column

Viscaria D-zone stratigraphic column and general log (from Masurel, 2011)

14

Viscaria: D Zone
New Observations
Basaltic sills of Peuravaara Fm Epigenetic style of mineralisation

Stratigraphic Units (younging to top):

Carbonates & marble veining, dissimilar to D1 dolomitic member, not a structural repeat but a separate unit Magnetite mineralisation Multiple Basaltic Sill intrusives, resemble Peuravaara Fm Graphitic Siltstones HW Volcaniclastics correspond to D2 tuffite member FW Basaltic flows (amygdaloidal) & dolerites of Pikse Fm
15

Viscaria D Zone: Lithochemical classification

FW basalts are high-Ti, high-Fe tholeiitic basalts that belong to Pikse Fm HW volcaniclastics correspond to D2 tuffite member (Martinsson,1997) Upper ore zone marble is not a structural repeat of D1 member as different chemical composition Basaltic sills chemical composition resembles basalts from the Peuravaara Fm and tuffs from Linkaluoppal Fm

16

Viscaria: Magmatic Affinity

Magmatic affinity plots of Yb/Th, Yb/La and Y/Zr according to Gifkins et al. (2003). Basalts are tholeiitic in character and volcaniclastic rocks are calc-alkaline. Chlorite-talc schists from the ore zone appear to be calc-alkaline in character and probably represent altered tuffaceous siltstones.

17

Viscaria: Discriminate Lithologies & Alteration

HFSE, Al2O3 and TiO2 ratio plots. Basaltic sills have undergone significant hydrothermal alteration. Tuffaceous siltstones represent variation in the primary composition and reworking. The large vertical spread observed in some plots for the basaltic sills is probably related to relative mobility of one or more of the immobile elements. Chlorite-talc schists cluster with tuffaceous siltstones indicating tuffs are precursor of these altered rocks.

18

Viscaria D Zone: REE analysis

Chondrite-normalized REE-pattern for the least altered volcanic rocks from the Viscaria D-zone. FW basalts exhibit flat REE pattern with slight positive Eu-anomaly as defined by Pikse Fm HW felsic siltstones show significant enrichment in LREE

19

Viscaria D Zone: Ore

REE plot for ore of Viscaria D-zone. The REE patterns are almost unfractionated, slightly enriched in LREE and depleted in HREE. Only negative Euanomalies are observed Compared with A Zone mineralisation: Fractionated, strong enrichment in LREE Distinct positive Eu anomaly

20

Viscaria D Zone: Host Rock assessment

Enrichment-depletion diagrams of ore normalised to least altered composition

21

Viscaria D Zone: Alteration of Host Rocks

To determine best fit of precursor rock unit to altered:
FW Basalt has high variation of TiO2 & Alumina; HW Tuffites would expect higher standard deviation as clastic contribution, but instead plot on the red line; Marble, primary content of immobile elements cannot be represented in a meta-sedimentary carbonate

22

Viscaria: Discriminate Alteration Assemblages

AI-CCPI alteration box plot for representative rocks from Viscaria D-zone. Least altered mafic volcanic rocks have high CCPI values and low to moderate AI because of the high Fe, Mg and Ca contents respectively.

23

Viscaria: Discriminate Alteration Assemblages

Na2O-AI alteration box plot for representative rocks from Viscaria D-zone Evidence of sodic depletion

Most strongly altered Hosts

HW Tuff: chl+py+ser+carb Basaltic Sills: chl+trem+py+carb

Ore
Bio-chl+trem+carb+mt+py+cp

Least Altered Rock Unit

FW Basalts: regional epidote
24

Viscaria D Zone: 18950N Drill Section

Looking grid north

25

Viscaria D Zone: Paragenesis

Simplified paragenetic sequence of the Viscaria D-zone Fe-Cu occurrence. M: massive; D: disseminated; Vl: veinlets; V: vein, P: pervasive; Pa: patchy; Loc: locally occurring;

26

Viscaria D Zone: Altered Basalt

DDH VDD0068 22.8m Sub-facies 1: Chloritic-Kfelspar-hematitic, brecciated amygdaloidal basalt.

DDH VDD0040 27.40m Sub-facies 2: Hematitic-chloritic-sericitic, reddish-brown, poorly sorted, matrixsupported breccia, containing mafic volcanic clasts/microclasts of basaltic origin.

DDH VDD0040 30.05m Sub-facies 3: Sericitic, massive reddish hematitic rock (matrix >80% hematite), altered with amphibole veins, amygdaloidal basalt.

Jigsaw-type texture

DDH VDD0068 33.30m Sub-facies 4: Matrix-supported, poorly sorted basaltic breccia, jigsaw-fit texture, including angular clasts mostly <4cm in size present in a finer-grained carbonaterich matrix.

27

Viscaria D Zone: FW skarn magnetite ore

DDH VDD0042 77m Skarn-altered mt-cp ore (lower contact surface of the marble horizon Dmbl2)

top: DDH VDD0040 128m bottom: DDH VDD0063 158m Top: Upper ore zone skarn-altered mt ore Bottom: Skarn-altered mt-cp ore (lower contact surface of the marble horizon Dmbl2)

28

Viscaria D Zone: Ore Zone altered lithologies

chl-tlc schist chl-tlc schist sill

chl-tlc schist

sill

DDH VDD0038 168m to 172.50m Chlorite-talc schists cut by basaltic sills in the ore zone

left: DDH VDD0040 119m right: DDH VDD0055 137.80m Left: Talc schist interval in the ore zone, weakly mineralized with magnetite Right: Scapolite-chlorite schist in the ore zone

29

Viscaria D Zone: HW skarn ore and marble

DDH VDD0063 95.80m Pure , massive, pinkish, calc-dolomitic marble, altered with epidote veins

DDH VDD0063 97.55m Chaotically banded marble, pinkish, comprising magnetite thin laminas as well as massive lenses of fine-grained magnetite.

DDH VDD0063 98.45m Magnetite-chalcopyrite ore horizon in marble

30

Viscaria D Zone: Andesitic Tuffites

DDH VDD0056 122.40m Strongly sheared andesitic tuffaceous siltstone

DDH VDD0024 121.20m Heavily deformed andesitic tuffaceous siltstone

DDH VDD0042 104.70m Sheared andesitic tuffaceous siltstone

DDH VDD0068 124.10m Sheared andesitic tuffaceous siltstone

31

Viscaria D Zone: Alteration

Chloritic-talc schist, former basalt strongly foliated

Chloritic-talc schist intercalated with mt, altered basalt

Contact of massive magnetite ore (top) & altered basaltic sill (bottom), Zoned alteration

Upper mt ore zone, cp-rich. Carb-trem alteration matrix. Late hydrothermal quartz. CP veinlet (top) cross-cut mt

Upper ore zone mt-poor, cp-rich skarn trem+carb alteration & late stage quartz

Upper mt ore zone, cp-rich skarn . Strongly altered with carb+/-tremolite

32

Viscaria: D Zone Ore

Cp+py veinlets crosscutting massive mt ore Carb+talc fg matrix

Cp+py stringers crosscutting cg mt. Matrix fg talc

Altered basaltic sill, with cg cp+/-py carb vein (left) cross-cutting mt (right)

Mt ore with cp selvage contact Talc+carb matrix

Mt-cp ore, cg & fg magnetite

Mt-cp ore Cp-py & mt appear intergrown

33