Kalgoorlie Gold Mining has stretched the boundaries of its Pinjin project, 140km east of Kalgoorlie, after securing a new license from the Western Australian Department of Mines, Industry Regulation and Safety.
The company has also lodged applications for two further tenements at the operation where it nailed gold hits last month including multiple intersections running between 10m and 15m wide and grading more than 5 grams per tonne.
KalGold says the new license opens up the Pinjin south area for the exploration of new targets to follow up on shallow intercepts, just off tenure to the east of the operation, that recorded a 22m hit at 5.64g/t gold from 23m and a 6m section grading 3.02g/t gold from just 6m.
Drilling at the new site is expected to kick off before the end of the year to define the strike and orientation of gold mineralisation at the operation.
Kalgoorlie Gold Mining managing director Matthew Painter said: “Gold targets at Wessex, Wessex South and Harbour Lights Extension can now be fully explored without working around gaps in tenure or dealing with third parties. At each of these, we aim to repeat and extend shallow, high-grade gold hits from just off-tenure onto our ground. KalGold is the sole applicant on two other applications at Pinjin. We look forward to their grant soon as we continue to systematically explore the full potential of the Pinjin Project.”
Pinjin covers a substantial portion of the southern part of the highly-prolific Laverton Tectonic Zone that hosts some of the Eastern Goldfields’ biggest gold mines and deposits further to the north.
The Kirgella Gift prospect sits between Hawthorn Resources’ Anglo Saxon open-pit mine about 15km to the north, and Ramelius Resources’ Rebecca gold development project some 21km to the south. Anglo Saxon boasts a probable ore reserve of 730,000 tonnes at 2.66g/t gold for 62,000 ounces, while Rebecca boasts an eye-watering 775,000 gold ounces, of which 550,000 are classified in the indicated category.
The Laverton Tectonic Zone houses a stellar cast of world-class gold deposits, including Gold Fields’ 8.3-million-ounce Granny Smith gold mine and Anglogold Ashanti’s 3.6-million-ounce Sunrise Dam. It has been estimated that the entire zone contains a whopping 30 million ounces of the precious yellow metal.
At Kirgella and Pinjin South, tenure is the subject of a farm-in during the next two years to expand upon known mineralisation. Under the agreement, KalGold can secure its 75 per cent portion by spending at least $1.4 million in drilling and related activities in the first two years.
After a year, the company then has the option to mop up the entire deal for $1.65 million, with 50 per cent to be paid in cash, in addition to the handover of the remaining 50 per cent in shares.
Is your ASX-listed company doing something interesting? Contact: matt.birney@businessnews.com.au
By Michael Philipps
