Andromeda Metals (ASX: ADN) has announced high-grade initial drill results from RC drilling undertaken at the Clarke prospect at the Wudinna Gold Project on the Eyre Peninsula of South Australia.
The company said that the initial results received from joint venture partner Cobra Resources’ 2020 RC drilling program have returned a significant gold intercept of 31 metres at 3.06 g/t gold from 69 metres, including 15 metres at 5.35 g/t gold from 83 metres, at the Clarke prospect.
ADN said that the substantial intersection is north of mineralisation previously intersected at Clarke and represents a high priority target for a future joint venture drilling program.
The company said that a total of 41 RC holes for 6,090 metres were drilled from September across several drill prospects of the Wudinna Gold Project, with 80% of the assay results still awaited.
Andromeda said that the final results from this program should add support to Cobra’s stated aspirational aim to build on the current Mineral Resource of 211,000 ounces towards an initial target of 1 million ounces of gold resource across the Project area.
The company said that the JV partner Cobra has provided notice to ADN that they have now met the Stage 1 expenditure commitment which will provide them with a 50% equity interest in the Wudinna Gold Project once confirmed.
The Company said that its focus remains directed towards completion of the Mining Lease submission and Definitive Feasibility Study for the Great White Kaolin Project.
Eyre Peninsula Gold Joint Venture
The Eyre Peninsula Gold Joint Venture with JV partner Cobra Resources PLC comprises a 2,027km2 land holding in the Gawler Craton.
The principal terms of the Wudinna Gold Farm-in and Joint Venture which was executed on 31 October 2017 between ADN and Cobra include:
•Cobra will sole fund $2.1 million within 3 years of execution to earn a 50% equity position (Stage 1 earn-in). Both joint venture partners have agreed to extend this to 31 December 2020.
•At the end of Stage 1, a joint venture can be formed, or alternatively Cobra can spend a further $1.65 million over a further two years (total funding of $3.75 million over 5 years) to earn a 65% equity interest (Stage 2 earn-in).
•At the end of Stage 2, a joint venture can be formed, or alternatively Cobra can spend a further $1.25 million over a further 12 months (total funding of $5.0 million over 6 years) to earn a 75% equity interest (Stage 3 earn-in).
•Once a joint venture is formed, the parties will contribute to further expenditure in accordance with their respective equity, or dilute using a standard dilution procedure.
•Should a party’s equity fall below 5%, its equity will be compulsorily acquired by the other party at a price to be negotiated in good faith, or failing agreement, at a price determined by an independent valuer.
•Cobra must meet the requisite statutory expenditure requirements to keep the project tenements in good standing.
•Cobra will act as manager during the farm-in and thereafter while ever it holds at least 50% equity.
Wudinna gold project
The Wudinna Gold Project is located within the Eyre Peninsula Gold Joint Venture tenement holding and comprises a cluster of gold prospects which includes the Barns, White Tank, and Baggy Green deposits.
Gold mineralisation at the Barns, White Tank, and Baggy Green deposits is hosted by variably deformed granodiorite/gneiss interpreted to belong to the Tunkillia Suite, a group of 1690Ma granitiods that form important host rocks in the Central Gawler Gold Province. The Central Gawler Gold Province is a belt of gold-dominant mineralisation which formed approximately 1590 million years ago during the regionally extensive Hiltaba/GRV tectonothermal event.
The Baggy Green Resource has two areas of mineralisation: within the south the interpreted mineralisation extends over an area of 200 mN by 400 mE and in the north it extends over an area of 150 mN by 300 mE.
The revised Wudinna Gold Camp Mineral Resource is as shown below. This includes the Resource estimates for the Barns, White Tank, and Baggy Deposits.
The Clarke prospect is located approximately 1.75 km north of the inferred Baggy Green Gold Resource which currently stands at 94,000 ounces at 1.4g/t gold
RC drilling at Clarke prospect
ADN’s JV partner Cobra Resources PLC had recently undertaken RC drilling at the Clarke prospect at the Wudinna Gold Project on the Eyre Peninsula of South Australia.
ADN said that three reverse circulation (RC) holes totalling 409 metres were drilled approximately 60 metres north of the existing mineralisation and drilled back to the south to test and define the continuity and orientation of the mineralisation.
The company said that a significant gold result was returned in hole CBRC009 of 31 metres at 3.06 g/t gold from 69 metres, including a high-grade intercept of 15 metres at 5.25 g/t gold from 83 metres. Summary Intercepts of results greater than 1 g/t gold is as below.
Andromeda said that these three holes’ assays were prioritised due to significant intercepts of quartz and sulphides.
Stage 1 of the JV agreement completed
ADN said that Cobra has provided notice to the Company that, with the completion of the recent RC drilling program, it has now met the Stage 1 expenditure commitment under the Wudinna Gold Project Joint Venture.
Andromeda said that following formal confirmation and receipt and assessment of final assays, a decision will be made by Cobra on whether they elect to proceed to Stage 2 of the Farm-in and Joint Venture agreement.
The company reported that infill and extensional drilling aimed at growing the resource and converting Inferred resources to Indicated resources is planned.