Kalgoorlie Gold Mining (ASX:KAL) is moving quickly to take advantage of new acreage it is acquiring in the Eastern Goldfields of Western Australia.
The Company has entered into a binding option agreement to farm-in to a very strong portfolio of highly prospective gold tenements, including an option to acquire 75% interest in tenure at Kirgella and Pinjin South, at the southern end of the Pinjin goldfield.
In addition, the company will acquire a 100% interest in tenure at Rebecca West (E28/3135-36).
The total tenement package covers ~48.9 sq. km on an immature Archean greenstone belt within a world-class gold precinct which hosts Ramelius Resources’ 1.1 Moz Rebecca Gold Project immediately to the south along strike.
We are extremely excited by this acquisition which could ultimately be a company-maker for KalGold,” Managing Director, Matt Painter, said.
“The potential of this new tenement package, in particular the Kirgella Gift prospect where historic drilling has been very promising, cannot be overstated. It offers an opportunity for a significant discovery in one of the most prolific mineralised structures in the entire Eastern Goldfields.
“This acquisition delivers on our stated aim to assess appropriate projects systematically and continuously in the Goldfields region. We will continue to assess other projects and we have been proactive in applying for complementary ground in the region, submitting applications that will adjoin this tenure and which are currently undergoing an expedited granting process.
“This is a pivotal period for KalGold and we look forward to updating the market as we receive assay results from a recently completed, short confirmatory drill program, and commence the first phase of systematic exploration drilling starting at Kirgella Gift.”
KalGold has recently completed three new RC drill holes in the vicinity of the above historic holes to:
a) Confirm and validate the presence of the historic intercepts.
b) Confirm the geology and alteration styles related to gold mineralisation.
c) Enable direct comparison to historic drill holes that used different assay suites and techniques.
Next Steps
This initial programme will be followed up shortly after confirmation of results with systematic drill coverage of the down-plunge extension of Kirgella Gift, and around the historic Providence intercepts
Details of the programme are being finalised. This is expected to be the first of several programs testing continuity between Kirgella Gift and Providence several hundred metres to the south. KalGold has undertaken a complete reinterpretation of the geology and structure of the entire Pinjin region using publicly available geophysical datasets that have been amalgamated and reprocessed.
The company has identified numerous targets throughout the new tenure area and on existing granted tenure and applications. Interpretation work is ongoing as targets continue to be refined and new targets identified and ranked. Several targets identified on KalGold’s tenure applications throughout the area will also be tested upon granting.