EPM27396 - PALMERVILLE NORTH

Location & Access – EPM 27396

EPM 27396 is located approximately 146 km north of Chillagoe along the Bourke Developmental Road, west–northwest of Cairns (Figure 1). Primary access to the tenement is via Palmerville Road, with additional internal access provided by historical exploration tracks, station roads and established fence-line routes. The tenement lies predominantly across Palmerville Station and Fairlight Station, offering multiple access points through existing pastoral infrastructure.

Vegetation across most of the permit consists of “No Concern” sparse mixed Eucalyptus cullenii woodland on metamorphic hills, along with Melaleuca viridiflora and Eucalyptus leptophleba on floodplains and levees. Around the limestone karst terrain adjacent to Palmerville Road, pockets of “Of Concern” regional ecosystems occur, characterised by Melaleuca-lined stream margins, open forest, vine thickets and stands of Chillagoe Kurrajong associated with carbonate outcrops.

Accommodation, fuel and basic supplies are available in the nearby regional centres of Chillagoe and Laura (population ~250). Access is strongly seasonal: heavy summer rainfall restricts road movement during the wet season, and some prospects—such as the Fairlight area—are further constrained by regular creek and river flooding. As a result, field activities are generally undertaken during the dry season when track access and creek crossings are reliable.

Exploration Rationale – EPM 27396

The Palmerville region is recognised as highly prospective for intrusive-related gold–copper systems, particularly where the Chillagoe Formation, Hodgkinson Formation, and Dargalong Metamorphics converge. These geological settings host the same mineralised corridors responsible for major deposits such as Mungana and Red Dome.

EPM 27396 is the northernmost tenement in the Palmerville Project area. Historical exploration has intermittently targeted copper and gold occurrences, with mixed success. As early as 1907, the Queensland Government Mining Journal reported ore from the Glenroy area assaying between 3%–18.6% Cu and 1.08–23.4 ppm Au at shallow depths—early evidence of a mineralised copper–gold system.

Over the decades, numerous companies have completed geochemical sampling—soil, stream sediments, rock chips—and limited shallow drilling, though very little deep drilling has occurred across the tenement. Key historical programs include:

Early Exploration Programs (1960s–1970s)

• AMAD (A to P 430M, 1969): Completed Cu–Pb–Zn geochemistry from the Palmer River north to Fairlight. Anomalies were identified, but no follow-up work was undertaken.

• Lamadec Exploration (A to P 797M, 1971): Collected 5,682 copper soil samples across a 12 km grid near Glenroy. At the time, the copper grades were deemed uneconomic.

• Aquitaine Australia Minerals (mid-1970s): Investigated lead–zinc and copper mineralisation at Glenroy, Fairlight, Palmer, and Christie’s. Conducted magnetic surveys; excavated and sampled nine costeans, confirming anomalous copper zones associated with albitite dykes and basalt-hosted sulphides.

1980s Exploration – CSR, Tenneco, and ARI

• CSR Limited (early 1980s): Targeted scheelite, gold, and heavy minerals. While scheelite and anomalous heavy minerals were encountered, no significant gold or tungsten was discovered.

• Dump samples at Fairlight returned 3.66% Cu, 17 ppm Ag, 0.1 ppm Au.

• Two shallow air-core holes (15 m and 37 m) intersected malachite and chalcopyrite veining, with a peak grade of 0.16% Cu.

• Tenneco (late 1980s): Completed BLEG and rock chip sampling east of Fairlight; no significant anomalies were recorded.

• Transferred to Stadcill Pty Ltd, later acquired by ARI, who mapped Little Kennedy and identified copper-bearing quartz–siltstone–basalt sequences. ARI relinquished the area, having been focused on gold.

1990s – CRA and Sipos Mining

• CRA (1993): Considered the region prospective for porphyry-style Cu–Au systems but relinquished the tenement after limited fieldwork and no drilling.

• Sipos Mining (late 1990s): Reported rock chips up to 5.26% Cu near Glenroy but failed to delineate a coherent target.

Known Mineralised Systems – Glenroy & Fairlight

The Fairlight prospect contains at least 16 historic shafts (3–27 m depth), exploiting copper mineralisation within vesicular basalts of the Chillagoe Formation. Mineralisation occurs as:

• chalcocite, chalcopyrite, bornite and copper carbonates,

• hosted in limonite, quartz, jasper and altered basalts,

• controlled by contacts between basalt flows, and

• within crosscutting calcite–quartz vein arrays.

Cinnabar (HgS) has been recorded in trenches west of the copper workings, occurring with malachite in bleached and kaolinised basaltic rocks. Costeaning by Aquitaine confirmed copper values up to 372 ppm Cu in weathered basalt flow tops.

The geology is described as an isoclinally folded sequence of basic volcanics interbedded with cherts, rhyolites and limestones, overlain by greywacke, slate, and additional chert horizons. Interbedded cherts are interpreted as volcanic-exhalative in origin, with widespread sericitisation, ferruginisation and bleaching—classic indicators of hydrothermal alteration.

DMR Forward Rationale

Following the acquisition of EPM 27396, Diversified Mining & Resources (DMR) will continue advancing this exploration rationale. The tenement’s long history of copper–gold occurrences, combined with structurally controlled mineralisation and widespread volcanic–sedimentary architectures, provides a strong foundation for systematic modern exploration.

DMR will focus on:

• validating historic copper–gold prospects at Glenroy, Fairlight, Palmer and Christie’s,

• mapping and sampling structural corridors and basalt–chert contacts,

• testing fault junctions and intrusive-related settings not previously drilled,

• integrating radiometric, magnetic and hyperspectral datasets into target modelling, and

• identifying deeper hard-rock mineral systems that earlier programs never had the capacity to test.

DMR’s exploration rationale builds directly on the geological insights gained by previous explorers, applying modern exploration techniques to a highly prospective but historically under-tested part of the Palmerville district. 

Intrusive Units

The intrusive referred to historically as the “Aquitaine Granite” is a chloritised and sericitised biotite adamellite. Smaller, medium-grained granitic bodies also intrude the Chillagoe Formation in the northern part of the tenement. Narrow andesite and diorite dykes have been mapped near the eastern margin of the basic volcanics, indicating multiple intrusive phases and potential structural conduits for mineralising fluids.

Glenroy Area

At Glenroy, the Chillagoe Formation comprises limestones in close association with basalts and basaltic breccias, accompanied by ferruginous cherts and silicified sandstone/siltstone units. Exposure is poor, but mapped mineralisation includes:

• chalcocite,
• copper carbonates,
• chalcopyrite,
• minor pyrite.

These minerals are hosted within weathered or altered basalts, albitite dykes, and quartz veinlets, suggesting structurally controlled hydrothermal pathways.

Palmer Area

In the Palmer prospect area, variably altered basalts and basalt breccias crop out east of a ridge of crushed and silicified siltstone and sandstone. Outcrop is discontinuous, with scattered boulders of fine-grained and vesicular basalt separated by broad rubbly soil zones. Deeper gullies expose intensely fractured and deeply weathered basic volcanics and volcanogenic sediments.

Two alteration styles have been identified:

• purple alteration, and
• quartz–epidote stockwork within basalt.

Both alteration types occur with, but subordinate to, relatively unaltered basalt. Exposure of basalt breccia is generally good, consisting of vesicular basalt fragments within a chloritic matrix or calcite cement. Clasts vary from centimetre-scale angular fragments to rounded pillows up to 40 cm in diameter.

 Current Work Program – Structural & Geophysical Interpretation (DMR Focus)

During 2024, Mitre Geophysics was engaged to complete a comprehensive structural and geophysical interpretation across the northern sector of the Palmerville Project, including the areas surrounding EPM 27396. The study covered the region north of the Mitchell River to the project’s northern boundary and incorporated all publicly available data, historical datasets obtained from NMR, and the high-resolution 2023 airborne magnetic and radiometric survey.

Mitre’s interpretation relied heavily on the magnetic component of the airborne dataset, applying a suite of advanced filters—including RTP variants, first and second derivatives, tilt derivatives, VRMI, and Analytic Signal—to distinguish stratigraphic packages, magnetic units and structural domains. Radiometric imagery was reviewed but did not materially enhance the structural understanding for this tenement.

The resulting interpretation clearly reveals a dominant north–south magnetic grain, intersected by a highly complex network of northeast-, northwest-, and east–west-trending structures. The major Palmerville Fault is well defined, along with multiple cross-cutting structural sets that provide prospective pathways for mineralising fluids. Areas exhibiting reverse remanent magnetisation were also mapped, aiding the identification of concealed or poorly expressed magnetic bodies.

Mitre’s work forms a robust foundation for ongoing exploration, providing a structural framework suitable for conceptual target generation, mapping, and model refinement. While numerous minor magnetic trends are present, the completed interpretation captures the essential geological architecture required for prioritising field programs.

3D Magnetic Inversion Modelling – Glenroy to Fairlight Trend

In addition to the 2D structural work, Mitre Geophysics was tasked with producing 3D magnetic inversion models for the Fairlight–Glenroy corridor—one of the key copper-bearing structural trends historically identified by NMR. This modelling utilised the 2023 airborne magnetic dataset and aimed to visualise the subsurface geometry of magnetic bodies associated with known mineralisation.

The results show a strong, narrow magnetic feature that extends from immediately north of Fairlight through to the Glenroy prospect. This structure correlates closely with the trend of historic copper occurrences and aligns with mapped basalt–dyke contacts and alteration zones.

Depth slices at 100 m, 500 m, 700 m, 1,000 m, and 1,500 m (Figures 5–9) reveal:

• a vertically persistent magnetic body,

• a narrowing of the feature at depth, and

• eventual bifurcation into two steep, parallel north–south–trending bodies.

Figure 10 (plan and isometric views) highlights the steep, elongated geometry of these bodies—consistent with intrusive or structurally hosted mineralising conduits.

DMR Forward Exploration Focus

Following acquisition of the Palmerville Project tenements, Diversified Mining & Resources (DMR) is now integrating these results into its forward work program. DMR’s exploration strategy will:

• Prioritise the Fairlight–Glenroy magnetic corridor as a high-value hard-rock copper–gold target.

• Ground truth structural intersections and magnetic bodies identified in the 3D models.

• Apply modern geochemistry, hyperspectral tools and targeted field mapping to refine drill targets.

• Extend structural interpretation across adjacent tenements to define continuity of magnetic and structural trends.

• Incorporate the magnetic modelling into the broader REE exploration strategy, using radiometric highs and structural traps to guide sampling and anomaly verification.

The modelling results confirm significant, coherent magnetic architecture beneath Fairlight and Glenroy—now positioned as priority targets in DMR’s expanded hard-rock exploration portfolio.

Results & Conclusions 

The structural and geophysical interpretation completed by Mitre Geophysics for the northern Palmerville Project has produced a detailed structural framework for EPM 27396, forming a strong foundation for ongoing exploration (Figure 4). Several priority targets were identified within or adjacent to the tenement, defined by magnetic responses, structural intersections, and known geochemical anomalies. These targets represent key areas for follow-up work.

Priority Targets Identified

NP12_A – Glenroy Prospect

• Located on the western flank of a major NNW magnetic stratigraphic unit
• Hosts a clear geochemical anomaly
• Secondary magnetic feature suggesting possible structural thickening or alteration
• Recommended Work: Induced Polarisation (IP) survey to refine drill targets

NP15_A – Fairlight Prospect

• Contains two major N–S magnetic bodies with cross-cutting fault systems
• Supported by documented geochemical anomalies
• Recommended Work: IP survey to delineate chargeable or sulphide-rich zones

NP13_B – Structural-Magnetic Complexity Zone

• Represents a complex magnetic domain within the main NNW trend
• Multiple cross-cutting faults and possible thickened magnetic units
• Notable strike change to a more northerly orientation
• Recommended Work: Geological mapping, geochemistry, followed by IP

NP20_B – Palmer River Copper Prospect

• Magnetic anomaly where NNW magnetic units terminate against NE & NW faults
• Known copper prospectivity in the vicinity
• Recommended Work: Mapping, geochemical sampling, magnetic modelling (depth & geometry), then IP survey

NP14_C – Isolated Magnetic Anomaly

• Magnetically discrete body of uncertain geometry
• Recommended Work: Magnetic modelling to determine depth and form

NP16_C – Structural Intersection Zone

• Termination of multiple N–S magnetic trends by NE and NW regional faults
• Highly prospective structural setting
• Recommended Work: Mapping and geochemical sampling

NP17_C – Northern Structural Trend

• N–S magnetic unit truncated by minor NE faulting
• Potential structural-fluid trap
• Recommended Work: Mapping and geochemical sampling

NP22_C – Northern Magnetic Termination

• Strong magnetic bodies cross-cut by NE-trending faults at the northern end of the survey
• Recommended Work: Mapping and geochemical sampling

DMR Forward Strategy (2025–2026)

With the acquisition of the Palmerville Project tenements, Diversified Mining & Resources (DMR) has adopted these structural and magnetic targets as the basis for its forward exploration program. During the 2025–2026 field seasons, DMR will:

• Deploy the fieldwork team to map and sample all NP-series targets
• Prioritise IP surveys over Glenroy (NP12_A) and Fairlight (NP15_A) to refine drill-ready conductors
• Conduct magnetic modelling on isolated anomalies (e.g., NP14_C, NP20_B) to assess depth and geometry
• Integrate geochemistry, hyperspectral data and radiometrics to refine both Cu–Au and REE opportunities
• Build a comprehensive multi-commodity exploration strategy across EPM 27396 and adjacent DMR tenements

DMR’s next phase of work will convert these geophysical and structural anomalies into a ranked exploration pipeline, guiding detailed ground programs and future drilling campaigns