Carawine Resources (ASX:CWX) has launched a drilling program at its Paterson Project in Western Australia, as majority shareholder QGold seeks approval from the Federal Court of Australia to move ahead with its compulsory acquisition of the explorer.
Some 300 aircore and reverse circulation drillholes — totalling between 5,000m and 7,000m — have been planned at the project’s Cable tenement, focusing on the Warroo North, Warroo Northeast, and Warroo Trend prospects. The holes will be drilled roughly 120m apart, on line intervals of between 400m and 800m.
The program, which is expected to take six weeks to complete, will also cover a number of conductive anomalies identified during the interpretation of data from a helicopter-borne electromagnetic survey carried out in April.
Carawine says the survey targeted conductive bedrock anomalies, which may be associated with copper and copper-lead-zinc sulphide deposits within the Warroo Trend and Broadhurst Formation.
Once the drilling is complete, the results will be combined with the survey data to produce a geological and structural model that will guide further exploration activities.
Separately, majority shareholder QGold is seeking approval from the Federal Court of Australia to advance its compulsory acquisition of Carawine.
According to Carawine’s December quarter report, published at the end of January, QGold participated in a fourth-quarter entitlement offer, subscribing for almost all of Carawine’s shares up for grabs. As a result, its stake was boosted to 90.61%.
Then, in March, QGold announced its intention to purchase the remaining shares on issue at $0.11 each. As of 2:00pm today, shares in Carawine were trading at $0.086.
QGold noted at the end of May that a case management hearing in relation to the matter has been set for 18 July in Brisbane.
Write to Oliver Gray at Mining.com.au
Images: Carawine Resources
