DiscovEx Resources is set to offload its Newington project in WA’s Goldfields region after entering into an option agreement to sell off the venture to ASX-listed Midas Minerals. According to the company, the venture is prospective for gold and lithium and its sale will provide a cash boost that could be funnelled into its precious and base metal projects across the state.
Newington consists of 10 exploration licences and two mining leases. The project has to-date played second fiddle to the company’s other gold and base metal operations, namely Sylvania in the Pilbara and Edjudina near Laverton.
Midas says it will initially kick off its review of Newington with a detailed assessment of the project’s existing dataset and will also look to get boots on the ground to evaluate the site’s gold and lithium potential.
According to Midas, it is aiming to dive into a work plan at the project to assess the precious metal potential at the Mt Correll/Hawthorn, Newfield and Dawson areas whilst simultaneously reviewing a sector of untested pegmatites in the Newfield and Kawana areas.
Between 2001 and 2005, Newfield churned out around 32,000 ounces of gold at an extraordinarily high grade of 24.5 grams per tonne gold, with 70 per cent of that produced below a sub-horizontal dolerite dyke.
Midas believes numerous other locations across the project area, including Newfield East, Dawson's, Hawthorn and Sweet William, could host similar riches.
A previous probe at Dawson's by DiscovEx delivered a litany of encouraging results including a 4-metre hit going 16.6 g/t gold, 3m at 11.0 g/t gold and a 2m section running 13.0 g/t gold.
Interestingly, all the strikes were delivered beneath the same sub-horizontal dolerite dyke found 700m to the south at Newfield Central.
Midas says through a data review of the Newfield and Kawana areas it also believes the sites could host lithium caesium, tantalum pegmatites.
Under the terms of the agreement, Midas forked out $30,000 to DiscovEx for a 90-day option, starting on April 1. The company says it will use this period to conduct its due diligence en route to a potential acquisition.
A consideration of $70,000 in cash and more than 2 million Midas shares will also be paid to DiscovEx if the option is exercised.
Newington’s main project area covers around 210 square kilometres about 90km north of Southern Cross. The projects tenements stretch across a 33km patch of the region’s Greenstone Belt.
The Southern Cross Greenstone Belt is home to a number of gold resources thought to be promising. The Mt Holland pegmatite-hosted lithium deposit, that is being developed by Wesfarmers and SQM Covalent, is also located in the belt, as are numerous other important nickel resources.
DiscovEx is gearing up to complete further exploration at its Sylvania and Edjudina projects and the potential sale of Newington could help speed up the process.
Elsewhere, DiscovEx Resources claimed another victory in Queensland after its JV partner, Carnaby Resources struck a 24m interval grading 5 per cent copper and 1.3 g/t gold from 313m in its latest probe of the Nil Desperandum prospect, part of the larger Greater Duchess project near Mt Isa.
According to the company, the probe suggests the mineralised system boasts both grade and range given it was sunk over 70m from the initial discovery hole.
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