EXPLORATION OPPORTUNITIES

EAST PROJECT

Toole Creek Volcanics

OVERVIEW

The Toole Creek tenements include Exploration Permits for Minerals (EPMs) with a combined total area of 333kmÇ centred approximately 32km south‐east of Cloncurry. The project area can be accessed from Cloncurry by sealed roads and the Townville‐Mt Isa railway line runs through the project area.

GEOLOGY

This highly prospective package of tenements is mainly located east of the Cloncurry Fault and north of the Selwyn‐Mount Dore corridor, which contains many IOCG deposits within a highly prospective belt that is bounded on the south by the Canteen “IOCG” Prospect, and on the east by the Eloise Deposit within the Soldiers Cap Group.

Mineralisation in the area is hosted by two major sequences of sedimentary and bimodal volcanic rocks viz., the Staveley Formation and Soldiers Cap Group.

These lithological packages were deposited during two periods of rifting. An earlier period between ~1770 and 1710 Ma, and a later period between ~1690 and 1650 Ma, (Page and Sun, 1998; Giles and Nutman, 2003). The earlier period of rifting (back‐arc extension?) overlaps the age of the intraplate “Argylla” volcanics that underlie Transitions tenements in the Mitakoodi domain. This indicates that back‐arc rifting and by association the effect of plume magmatism was regionally pervasive.

The Staveley Formation comprises intercalated calcareous metasiltstone and metasandstone and metabasalt (Beardsmore et al., 1988). As the Staveley Formation contains calcareous lithologies, these have been correlated with post‐rift carbonate‐bearing units (e.g., Overhang Jaspillite and Doherty and Corella formations) that crop out elsewhere in the Eastern Succession.

A number of IOCG deposits in the Eastern Fold Belt (e.g., Eloise and Osborne), are also hosted by the regionally extensive Soliders Cap Group. This sequence (Llewellyn Creek Volcanics and Mount Norna Quartzite) comprises a lower unit of rift‐related turbidite sequence comprising metapelites and quartzites as well as units of metabasalt that accumulated between 1693 ± 5 Ma and 1654 ± 4 Ma (Page, 1997; Page and Sun, 1998; Giles and Nutman, 2002).

The upper unit of the Soldiers Cap Group (Toole Creek Volcanics) has a maximum depositional age of 1657 ± 8 Ma; Page, 1997). Although dominated by meta‐basalt flows, it also contains a finingupward sequence siltstone, mudstone, and black shale that was deposited during late‐stage rifting.

HISTORY

The tenements are characterised by numerous small‐scale copper and gold mines that were predominately mined prior to 1960, at a time when lack of infrastructure and transport of ore by bullock or camel train, dictated that only high‐grade ore was mined and shipped. Historical mines were generally identified by surface mineral exposures and only sporadic deep exploration activity was rarely undertaken in the area.

ADJACENT EXPLORATION BY OTHERS

Exploration adjacent to the Transition EPMs continues east of Cloncurry where a focus on gold and copper is meeting with some success adjacent to Transition’s EPM26357, where detailed exploration is planned during 2020.

Ausmex (ASX:AMG)

Ausmex are in JV with Round Oak Minerals Limited, which is a 100% subsidiary of $6.7B Washington H. Soul Pattinson (ASX:SOL). Results adjacent to Transition’s EPM26357 include (from the AMG ASX announcement – 29 November 2018):

“Little Duke drill hole LD18RC006 located within the “Golden Mile” that intersected a 70 m continuous graphitic black shale shear zone with up to 50% visible sulphides has returned the following significant gold and copper assay results:

  • Sulphide Zone mineralisation (graphitic black shale)
    • 59 m @ 1.25 g/t Au and 0.43% Cu (73 m-132 m)
    • drill hole finished in mineralisation at 132 m with the last 5 m averaging 1.42 g/t gold.
  • Oxide Zone mineralisation
    • 8 m @ 1.93 g/t Au and 0.72% Cu (49 m-57 m) within,
    • 25 m @ 0.51% Cu (32 m-57 m)
  • Total combined gold and copper down hole mineralisation
    • 67 m @ 1.33 g/t Au and 0.47% Cu”

Ausmex intersected wide zones of gold mineralisation (2 zones) in a new area at their Golden Mile Project, which is immediately adjacent to Transition’s EPM26357.

Minotaur (ASX: MEP)

The Eloise project, 55km south-east of Cloncurry, is a joint venture between Minotaur and OZ Minerals Ltd (ASX: OZL). OZ Minerals are sole funding up to $10 million over six years to earn a 70% interest, which is expected to be achieved in 2020; 3-years earlier than planned.

The Minotaur-OZ Minerals JV (“Minotaur JV”) has identified a large-scale iron sulphide copper gold (ISCG) mineralised system parallel to and offset (east) of the Eloise mine.

Mineralisation being targeted is sulphide rich and characterised by the presence of pyrrhotite (conductive and magnetic),providing options for geophysics-based targeting using Electro Magnetics (EM).

The Minotaur JV are extending their EM survey northwards along a prospective corridor that rings a large granite intrusion (MalakoffGranite), in search of similar occurrences under geological cover; including adjacent to the eastern boundary of Transition’s EPM26350 (see Figure 07 and Minotaur ASX release 18/12/18).

(image from Minotaur ASX release -18-12-18): Regional magnetics, with gridded Ground EM survey data (X-component, channel 30). Transition Resources EPM26350 has been added to the image with Transition’s regional magnetics showing subtle (deep?) magnetic anomalies that have been identified within an interpreted prospective corridor recently confirmed as host to a large mineralised system by the Minotaur JV.

Transition has identified at least two magnetic anomalies beneath cover within its EPM26350; interpreted to be deep, subtle magnetic anomalies that are typical of lower-order magnetic bodies, such as might be expected from a pyrrhotite rich, magnetite-poor, sulphide system.

Transition plans to drill several deep diamond holes into these targets, possibly with the assistance of the Collaborative Exploration Initiative (CEI), a government initiative designed to encourage drilling and exploration of projects in under-explored areas in north-west Queensland. A submission is planned later in the year.

The Minotaur JV have agreed to an intensified drilling program from April 2020, with the initial phase to comprise around 23,000m of drilling with two rigs drilling continuously.