Source : THE AGE NEWS
By Craig Nolan
Aureka Limited has potentially unearthed a new gold zone from first drilling at the previously untested western flank of its flagship Irvine project, in the gold-rich Stawell region in Victoria, about 240km west-northwest of Melbourne.
All previous mineralisation at Irvine has been discovered at the eastern flank of the Irvine Basalt zone, where a mineral resource of 304,000 ounces of gold grading at 2.4 grams per tonne (g/t) has been defined at the Resolution lode, running from shallow depths to as deep as 400 metres.
Aureka Limited’s drill core showing pyrrhotite development around quartz veining within Irvine basalt from drilling at the company’s Irvine project in Stawell, Victoria.
Initial assay results from drilling the first hole at the company’s Resolution lode on the western flank of the Irvine Basalt dome returned several promising gold hits, including 0.32m at 4.72g/t from 159.4m and 1.55m going 0.62g/t from 211.3m.
Intriguingly, with the new discovery of gold outside the known mineralised zone, it presents an opportunity for Aureka to expand the project’s size, in addition to going full bore in pursuit of its lofty exploration target at Irvine, which is the company’s most advanced gold project.
The target comprises between 3.4 million tonnes and 5.2Mt at its Resolution and Adventure lodes, for 280,000 ounces to 420,000 ounces of gold grading at 2-3 grams per tonne (g/t).
Aureka Ltd managing director James Gurry said: “This new mineralisation, outside the known areas, validates Irvine as one of Victoria’s most substantial undeveloped gold projects.”
Irvine’s targets remain open along strike and at depth, with previous stellar gold hits of a 5m slice at 10g/t, 9.4m going 5.3g/t and a 10.8m hit running at 4.5g/t.
Irvine sits 20km from the impressive Stawell gold mine’s 5m-ounce operation.
The company says several small historical gold prospects have been identified on the western side of the Irvine Basalt dome, near the contact of the basalt and adjoining western Albion Formation sediments. However, limited follow-up drilling has been conducted at the prospects until now.
Further follow-up exploration is planned for the western flank, with the latest drilling highlighting the area between the Resolution and Adventure lodes as a new zone of interest.
Drilling in the main exploration target zone returned sulphide-bearing samples which have been submitted to the lab and are awaiting assay results.
‘… validates Irvine as one of Victoria’s most substantial undeveloped gold projects.’
Aureka Ltd managing director James Gurry
In somewhat of a coup for the company, management revealed last week that Jozef Story, exploration manager for the past four years with giant Barrick Gold and responsible for their entire large Tanzanian exploration portfolio, has joined Aureka to lead its geology team.
Story brings 25 years field experience including more than 12 years working on similar Victorian gold projects, such as early-stage exploration at the renowned Fosterville operation. His appointment is expected to add significantly to the technical team’s project assessment, exploration, planning and execution experience.
Along with his work at Fosterville, Story was the project geologist for former ASX-listed Castlemaine Goldfields, garnering experience across multiple locations in the Victorian goldfields. With Aureka’s wide-range of projects in the historic gold-endowed Victorian regions of Stawell, Bendigo and St Arnaud, the experience gained working in the gold-producing state should prove invaluable.
Gurry said the inclusion a seasoned and senior exploration manager with such relevant experience recognises the significance of the company’s existing portfolio and potential for future discoveries, in addition to ensuring it has the best opportunity for success and growth with its projects.
To illustrate the significance of the Irvine project to Aureka, it recently secured an additional 97 hectares surrounding the project. The purchase for $2.2 million provides Aureka unfettered site access and provides scope for potential infrastructure optionality.
Management says the mortgageable land was purchased at market value and will not greatly affect Aureka’s cash balance which was sitting at a healthy $4m at the end of March.
Accessing land containing valuable designated resources can be difficult in Victoria, given the need for exploration companies to negotiate access with local farmers and small landowners.
The process can cost a company significant time and money in access payments if it wishes to conduct an extensive drilling campaign.
Aureka’s purchase overcomes the hurdle by offering permanent access as well as options for future mining infrastructure operations.
Aureka also holds the Tandarra project, which is part of Victoria’s Bendigo gold zone, in a joint venture with ASX-listed Catalyst Metals. Catalyst owns 51 per cent of the project and manages it.
Tandarra includes the promising Lawry and Upton Road prospects. The joint venture project sits along the Whitelaw gold corridor and the Tandarra fault, extending for 13km along the two faults. The Whitelaw corridor is considered a major structural control of gold mineralisation north of Bendigo.
Tandarra also sits 50km northwest of Agnico Eagle’s globally significant Fosterville gold operation and 40km north of the 22m-ounce Bendigo goldfields.
Catalyst has recently completed a seven-hole diamond drilling program at the project and the samples are being prepared for assaying. The drilling included 1000m of diamond holes at the Lawry prospect to increase the project’s mineralised footprint.
Previous gold results at the site certainly caught the eye, with 12.9m grading 33.1g/t from 66.4m, including 0.5m at a massive grade of 831g/t, and a 9m section running at 14.8g/t gold.
Tandarra has three main prospects – Tomorrow, Macnaughton and Lawry with Tomorrow being regarded as the most advanced prospect.
Notably, the Tandarra ground is adjacent to Catalyst’s Four Eagles gold project, which it holds in partnership with a subsidiary of Gina Rinehart’s Hancock Prospecting.
The gold grades at Four Eagles are also impressive. It has a 163,000-ounce resource at 7.7g/t and 70,000 ounces at a high-grade 26.2g/t.
Aureka management is obviously chuffed with the new gold zone at Irvine’s western flank. And its smile will broaden even more if the sulphide-bearing samples awaiting assays point to a promising kick-start in meeting its exploration target.
Is your ASX-listed company doing something interesting? Contact: mattbirney@bullsnbears.com.au
