for the Three Months Ended 31 March, 1997


High level of exploration activity maintained through internal funding and operating joint ventures - $7 million budget for 1997.




Exploration priority is Proterozoic Copper-Gold Ironstone Breccias.

The Company is maintaining a high level of exploration activity by both funding its own programs and through the careful structuring of joint ventures, mostly operated by Equinox during the exploration phase. As a consequence of this strategy, Equinox’s 1997 budget is for expenditure of about $7 million, including joint venture funds. This is a substantial budget for a company of Equinox’s capitalisation - our objective being to maximise the Equinox shareholder’s exposure to potential exploration success.


The Company is primarily focusing its exploration effort on Proterozoic Copper-Gold Ironstone Breccia mineralisation of the Ernest Henry - Olympic Dam style, in which its team has specific expertise. This style of mineralisation is the target of programs in :

    • Southern Africa (especially Zambia);
    • the Gawler Craton;
    • the Curnamona Craton; and
    • the Cloncurry region.

Equinox intends to continue to expand its exploration effort for Proterozoic Copper-Gold Ironstone Breccia mineralisation, whilst maintaining its exploration activities for structurally controlled gold mineralisation in the Yilgarn of Western Australia.







Zambezi JV :

  • exploring for Ernest Henry style Cu-Au in southern Africa;
  • funded by Anglo American;
  • operated by Equinox;
  • focus is Zambia - outstanding potential.


Zambezi JV has extensive landholdings :

  • 31,500 sq kms; plus
  • 20,000 sq km under application.


Program commenced :

  • flying aeromagnetics;
  • data compilation.



Kitwe / Luanshya South :

  • surrounds operating Copperbelt mines;
  • aeromagnetic data acquisition started
  • interesting prospects identified from previous exploration work.







Lufwanyama :

  • south of the Copperbelt in similar setting;
  • prospective structures identified from aeromagnetic data.



Chongwe :

  • Cu-Au-Fe prospects;
  • aeromagnetic survey completed.



Kafue Park :

  • hematite-magnetite alteration;
  • prospective structures.






Kabompo :

  • extensive property;
  • numerous Cu-Co, U, Fe and Au prospects;
  • aeromagnetic survey completed - traces target sequence.



New Applications :

  • over 20,000 sq kms;
  • Itezhi-Tezhi
  • Kasanka - Serenje




Exploration program :

  • flying of Copperbelt aeromagnetics;
  • interpretation of all airborne data;
  • compile database;
  • field program of geology and geochemistry;
  • SPECTREM surveys over some areas;
  • drilling in 2nd half-1997.




Zambezi JV :

  • extensive tenements
  • in world class province.





ZAMBEZI JOINT VENTURE - Anglo American Corporation

(Equinox 30%)


The Zambezi Joint Venture between Equinox and Anglo American is primarily focusing its efforts on Zambia which is considered to have outstanding potential for copper and copper-gold mineralisation. The Zambian Copperbelt is one of the world’s great copper provinces, however there has been virtually no regional exploration undertaken in Zambia since the early 1970’s. The region’s outstanding exploration potential remains untapped by modern exploration philosophy and techniques.


Equinox has established an extensive land position in Zambia. The Zambezi Joint Venture has been granted 6 exploration tenements covering a total area of approximately 31,500 sq kms and has an additional 20,000 sq kms under application.


Equinox, as operator of the Zambezi Joint Venture has established a base in Kitwe and commenced a regional exploration program in late-1996. To date the program has consisted primarily of aeromagnetic data acquisition and the compilation of a database from previous exploration programs, mostly in the 1960’s and early-1970’s.


Progress on the Zambian projects is summarized as follows :


  • Kitwe / Luanshya South : The Kitwe and Luanshya South tenements surround the mining leases of the operating Zambian Copperbelt mines and cover potential extensions of the mineralised Lower Roan sequence and other prospective structures. Aeromagnetic data from a survey flown by Geodass (500 m line spacing) in 1981, covering the southwestern portion of the area, has been acquired and reprocessed. World Geoscience will commence flying aeromagnetics over the remainder of the area (about 20,000 line kms - 400 m line spacing) for the Zambezi Joint Venture next Quarter.


An interpretation of the aeromagnetic data has commenced and radiometrics, acquired concurrently with the aeromagnetics, has also proved useful in tracing the Lower Roan sequence. An assessment of previous exploration has identified several prospects for testing, particularly along the 50 kms strike length of the Lower Roan sequence on the Kitwe tenement, between Mufulira and Ndola.


  • Lufwanyama : The Lufwanyama tenement covers a poorly exposed basement dome which is flanked by the target Lower Roan sequence, 40 kms south of the Copperbelt. The Geodass aeromagnetic survey referred to above covers most of Lufwanyama. A preliminary interpretation has delineated a series of prospective structures, some of which are associated with mineralisation in tenements adjoining Lufwanyama. Poor outcrop has limited previous exploration of the area, although some geochemical targets have been identified.


  • Chongwe : The Chongwe tenement covers a series of copper, gold and iron occurrences in prospective geology east of Lusaka. An aeromagnetic survey has recently been completed by World Geoscience over Chongwe and preliminary data have been received. An interpretation of the data will commence in April for target definition.


  • Kafue Park : The Kafue Park tenement is located southwest of Lusaka and covers numerous iron occurrences associated with the Hook Granite. Reconnaissance field work by Equinox has identified prospective structures, some of which have associated hematite - magnetite and sulphide alteration. The available wide spaced aeromagnetics (1,000 m line spacing) is inadequate for target definition and more detailed surveys will be conducted. Following the recognition of the potential of Kafue Park, the Zambezi Joint Venture has applied for an additional area to the south at Itezhi-Tezhi.


  • Kabompo : The extensive (12,300 sq km) Kabompo property in northwestern Zambia covers a series of granitic domes flanked by a sequence considered equivalent to the Lower Roan. World Geoscience has flown an aeromagnetic survey (400 m line spacing) over the Kabompo region and preliminary data are now available. Magnetics and radiometrics clearly define the trace of the Lower Roan equivalent, which is the host to numerous copper-cobalt, gold, uranium and iron occurrences. Data from previous exploration of the region are being compiled and the aeromagnetic survey interpreted in preparation for the field evaluation program.


In addition to the above projects a further 20,000 sq kms of tenement applications have been lodged by the Zambezi Joint Venture. Itezhi-Tezhi adjoins Kafue Park to the south and the Kasanka - Serenje tenements cover a number of gold prospects and ironstone occurrences within a major structural zone intruded by granites.


The Zambezi Joint Venture work program for the next Quarter will include :

    • completion of a 20,000 line km aeromagnetic survey at Kitwe, integration of the data with the Geodass survey and follow up interpretation of the Copperbelt region magnetics;
    • interpretation of the 40,000 line km of magnetic data at Kabompo and Chongwe;
    • complete compilation of the database for all previous exploration of all tenement areas; and
    • commence the field program which will initially include geological mapping and geochemistry to evaluate targets delineated by the aeromagnetic program.


The Zambezi Joint Venture will conduct SPECTREM surveys over some of the tenements in mid-1997. SPECTREM is a sophisticated high resolution airborne EM (electro-magnetic) system owned by Anglo American, used to identify sulphide mineralisation. Drilling of priority targets will commence in the second half of 1997.


Equinox is operating a major exploration program for the Zambezi Joint Venture over an extensive tenement package within a world class metallogenic province in Zambia. A series of highly prospective targets are being defined for initial drill evaluation in late-1997.




Gawler Craton - one of Australia’s most exciting exploration provinces.


Equinox is in an outstanding position :

  • extensive landholdings
  • major joint venture
  • highly active.




Equinox was one of the first companies to identify the Gawler Craton as one of the most exciting exploration provinces in Australia and the Company has established a substantial land position controlling a total area of about 16,500 sq kms.


In South Australia the Company is primarily focusing its efforts on the Gawler Craton Joint Venture with Phelps Dodge Australasia Inc. ("Phelps Dodge"), however it has established a substantial ground position outside of this joint venture in other parts of the Gawler Craton. Equinox has also expanded its activities elsewhere in South Australia with a new project in the Curnamona Region in the northeast of the state. South Australia continues to be a priority exploration focus for Equinox.











Equinox focusing on Mount Isa - Cloncurry Region.





Exploration focus on Proterozoic Cu-Au Ironstone Breccia mineralisation.









Fort Constantine South covers targets located only 10 kms S of Ernest Henry.





Drilling of priority targets scheduled for mid-1997.



Other prospective magnetic targets at :

  • Augustus Downs
  • Roxmere
  • Bony Creek; and
  • Mort River.




Base metal joint ventures.



Mt Oscar :

Geochemical - geophysical targets to be drilled by Pasminco in 1997.



Police Creek :

BHP has flown GEOTEM.











Dickson Creek :

  • Kidston style target
  • geochemical and aeromagnetic targets






Pallamana :

  • near Pajingo Mine
  • epithermal gold target
  • joint venture formed with Battle Mountain - PosGold.




Equinox’s Queensland exploration program is focusing on the Mount Isa - Cloncurry Region, although exploration programs have also been conducted in the Georgetown and Charters Towers regions of north Queensland.




The Company’s exploration efforts in the Cloncurry region have concentrated on Proterozoic Copper-Gold Ironstone Breccia deposits of the Ernest Henry type. Stratabound base metal (Zn-Pb-Ag) mineralisation in the Western Succession of the Mount Isa region represents a secondary exploration priority for Equinox and most of these projects have been joint ventured to other parties.


Exploration of the region has been severely constrained since late 1996 as a result of an exceptionally intense wet season, however exploration is now recommencing.


Cloncurry Region : Copper - Gold Exploration

(Equinox 100%)


The Company’s highest priority project in the Cloncurry region is the Fort Constantine South project, located 10 km south of the Ernest Henry Deposit. The property covers the same geological sequence and intrusives associated with Ernest Henry and some of the structures controlling the mineralisation at Ernest Henry can be traced through the Equinox tenement.


Programs conducted by Equinox at Fort Constantine South during 1996 included detailed aeromagnetics, geological mapping, soil geochemistry and reconnaissance RC drilling. These programs identified strongly magnetic, altered felsic volcanics equivalent to the Ernest Henry host rocks and delineated a series of about 20 high priority targets for further evaluation. Equinox will conduct a substantial RC drilling program at Fort Constantine South in mid-1997.


A series of intense magnetic anomalies are the priority targets at the Augustus Downs - Quinjerrie Creek, Roxmere, Bony Creek and Mort River tenements. A coincident geochemical / magnetic anomaly at Roxmere will be drilled in conjunction with Fort Constantine South and programs are being considered for the strong magnetic anomalies at Bony Creek, Augustus Downs and Mort River.


Mount Isa Region : Base Metal Exploration


The Company’s base metal exploration strategy in the Mount Isa Region has been to structure joint ventures with major mining companies, enabling Equinox to concentrate on the Cloncurry region copper-gold program.


At Mount Oscar, 30 kms north of the Century Zinc Deposit, Pasminco Australia Limited is operating an exploration program for the Company. Drilling of significant copper-zinc-arsenic anomalism at the Muswellbrook Prospect is planned by Pasminco following program approvals by the State Government.


BHP Minerals has flown a GEOTEM airborne geophysical survey over the Police Creek Project, 30 kms northeast of Mount Isa. Data is currently being processed for assessment and drill target generation.


The Browns Creek - Mica Creek Project is located 10 kms south of Mount Isa on extensions of the Mount Isa structures and stratigraphy. Equinox is planning further geochemical surveys of the property in mid-1997.






The Dickson Creek project is located 70 kms southwest of Chillagoe in northeast Queensland. The tenement covers a series of intrusives prospective for Kidston style gold mineralisation. The Equinox program in late 1996 delineated a significant geochemical anomaly over an area of 600 m by 900 m, associated with an aeromagnetic anomaly. This anomaly and a number of additional zones will be the target of ongoing exploration in mid-1997. Discussions are underway with parties interested in a joint venture on Dickson Creek.


The Pallamana project is located 3 kms northeast of the Pajingo Mine near Charters Towers in northeast Queensland. The property is prospective for epithermal gold mineralisation of the Pajingo style, the region having been subjected to renewed interest since the Vera - Nancy discovery by Battle Mountain - PosGold Joint Venture (the Pajingo JV). Equinox has formed a joint venture with the Pajingo JV to explore Pallamana under which the Pajingo JV may earn a 70% interest by expending $300,000 over 4 years. Thereafter project funding will be in proportion to equity, with Equinox retaining the right to convert to a 15% interest free carried to completion of feasibility. Exploration activities conducted to date by the joint venture include aerial photography and gradient array resistivity. A program of geological mapping, geochemistry and drilling is planned for mid-1997.





Yilgarn is Equinox focus of Archean gold exploration.









Murrin Murrin :

  • Hunter withdrawn;
  • RAB drilling starting.










Equinox controls 60 kms strike of Westonia Greenstone Belt - comparable to Southern Cross Belt (12 M ozs Au).




Continuing program:

  • targets defined;
  • drilling planned.







Equinox regional generative program continuing in Murchison.


New tenements granted.








Homestake JV :

  • may earn 70% - $1,750,000 / 5 years
  • RAB program commenced.




Archean structurally controlled gold mineralisation in the Yilgarn Craton is Equinox’s continuing focus in Western Australia. The Company is exploring in the Leonora, Murchison-Yalgoo and Southern Cross regions, has commenced programs at Nyabing in the South West Mineral Field and Nabberu in the Jundee Belt and has lodged tenement applications in the Gascoyne and Ashburton regions.




Murrin Murrin

(Equinox 51%, earning to 75%)


Hunter Exploration NL has withdrawn from the Murrin Murrin Joint Venture and Equinox has been reinstated as operator of the joint venture with Samson Exploration NL. A review of exploration by Hunter has been completed and a number of targets proposed for drill testing, including the MiG, Far East, North Star, Sukhoi and Nangaroo prospects. A RAB/aircore drilling program is planned for mid-1997.






(Equinox 51%, earning to 75%)


Equinox controls the majority of the Westonia Greenstone Belt through its joint ventures with Rhodes Mining NL and Cambrian Resources NL, with tenements covering a strike length of about 60 km. The Westonia Greenstone Belt is geologically similar to the Southern Cross Belt, 40 km to the east, which has production and reserves of more than 12 million ounces of gold. However, the extensive surficial cover in the Westonia Belt has limited the effectiveness of previous exploration. Equinox is applying exploration techniques such as aeromagnetics, structural analysis, geochemistry and RAB drilling to define drill targets through this surficial cover.


During the Quarter a substantial geochemical database was compiled from previously unavailable data reported by earlier explorers of the region. This data has been integrated with the Equinox geochemical / aeromagnetic database and has delineated a series of high priority exploration targets. These targets are scheduled for RAB/aircore drill evaluation by mid-1997.




Equinox is continuing its regional program in the Murchison - Yalgoo region and has been granted tenements at Milliwarrie and Little Millie Well which are being targeted for Big Bell style structurally controlled gold mineralisation. At Lakeside, southwest of the Cuddingwarra deposit, the Company has won the title ballot on the adjoining tenement and will commence a program when the tenement is granted. Joint venture discussions are underway with parties interested in farming in to the Lakeside project.


Equinox is operating a joint venture with BHP Minerals at Perenjori and has completed a program of geochemistry, geology and RAB drilling. Data is currently being assessed to plan the next phase of exploration at Perenjori.


At Weebacarry the Company has formed a joint venture with Homestake Gold of Australia Limited (Homestake) under which Homestake may earn a 51% interest by expending $750,000 within 3 years and a further 19% interest by spending an additional $1,000,000 within 5 years of commencement, provided that Equinox and Whim Creek Consolidated (a subsidiary of Plutonic) do not elect to contribute at 49% interest. On completion of Homestake’s earning phase project equities will be Homestake 70%, Plutonic 6.29% and Equinox 23.71%. Homestake has commenced a program of geochemistry and approximately 10,000 m of RAB drilling.







Equinox team expanded :

  • 17 technical staff
  • 4 admin staff






Cash on Hand : $6.88m



Exploration for Quarter : Equinox $0.24m

+ JV funds $0.94m


Annual budget : $2.50m

including JV funds : $7.00m


Equinox is in a sound financial position.





The Company’s high level of exploration activity has necessitated an expansion of the Equinox team. Mike Richards has been appointed Exploration Manager and John Cooke has joined the team to run the WA exploration effort. John Parker will continue to manage SA, Dick Cayzer - Queensland and Barry Van der Stelt - Africa. The Equinox team currently comprises 17 technical staff and 4 administrative personnel.



Equinox remains in a strong financial position with cash on hand at 31 March, 1997 of $6,883,000. During the Quarter the Company received a total of $224,700 from the exercise of employee options.


Equinox exploration expenditure for the March Quarter was $240,000 and expenditure including joint ventures totalled $942,000. This expenditure is lower than normal due to the wet seasons in northern Australia and southern Africa limiting field programs.


Equinox is maintaining a total annual expenditure of approximately $2.5 million, whereas effective annual exploration expenditure on Company projects will be more than $7.0 million through the application of joint venture funds. Most of this expenditure will be on programs operated by Equinox, but funded by joint venture partners.






Equinox is focusing on Ernest Henry style Cu-Au with exploration programs :



  • Zambezi JV in Africa



  • Gawler Craton JV




  • Cloncurry region


    also exploring in WA -Yilgarn region




  • strong financial position
  • $7 m budget for 1997
  • growth through exploration success.


    Equinox is maintaining a high level of exploration activity as a consequence of a carefully structured exploration strategy. The Company is focusing its efforts on exploration for Proterozoic Copper-Gold Ironstone Breccia style mineralisation (Ernest Henry type), in which the Equinox team has specific exploration expertise. For this style of mineralisation Equinox is exploring :


    • In southern Africa through a joint venture funded by Anglo American, with the initial focus being the highly prospective Zambian Copperbelt in which Equinox has established a major land position.

    • The Gawler Craton of South Australia through a joint venture funded by Phelps Dodge where the Company has discovered significant gold mineralisation at Nuckulla Hill. Equinox holds an extensive land position in the Gawler Craton and is one of the most active explorers in the region.

    • The Cloncurry Region of northwest Queensland in which Equinox holds a number of properties, the most prospective being Fort Constantine South, located 10 kms south of Ernest Henry.

    Equinox is also exploring in the Yilgarn region of Western Australia where the Company has a number of quality projects, the most important being the Westonia project near Southern Cross.


    The Company is in a strong financial position and is funding its high level of exploration activity by internal funding and through joint ventures. Equinox’s exploration budget for 1997 is approximately $7 million - a substantial budget for a company of Equinox’s size and market capitalisation. The aggressive exploration programs being undertaken by Equinox are providing the Company with outstanding opportunities for success.


    By order of the Board of Equinox Resources N.L. Equinox Resources N.L.

    Level 1, 681 Murray Street,

    West Perth, WA, 6005, AUSTRALIA

    PO Box 497, West Perth, WA, 6872

    Stephen J. Brown Phone : (09) 322 3318

    Company Secretary Fax : (09) 324 1195

    25 April, 1997 Email : Equinox @ eqr.com.au

    For further information please contact Craig R Williams (Managing Director - Corporate).