Cosmo Metals (ASX:CMO) has begun a 4,000m aircore drilling program at the Kanowna Gold Project in Western Australia, partly designed to follow up on historical intercepts at the Don Alvaro prospect.
The aircore program will run concurrently to a 2,000m reverse circulation drilling program, which is already underway.
In addition to Don Alvaro — which returned 18m @ 5.3 grams per tonne (g/t) gold and 10m @ 4.7g/t gold — drilling will test the Laguna Verde and WKL/Dugite targets, which are thought to be structurally related to the Kanowna Belle Gold Mine less than 5km to the northeast.
Cosmo, which has a market capitalisation of $6.15 million, says the programs are expected to take four to six weeks to be complete, with results to follow shortly thereafter.
CEO James Merrillees says there is an opportunity to uncover economic gold deposits at Kanowna.
“We’re extremely fortunate that any discovery made will lie within one of the world’s premier gold production districts and on the doorstep of several processing operations and a wealth of support expertise,” he says.
“We’re also pleased to have entered into an agreement with respected local contractor Challenge Drilling for part payment of the reverse circulation program to be made in Cosmo shares. This represents prudent allocation of the company’s cash reserves and aligns a key contractor with the interests of all shareholders.”
Under the agreement with Kalgoorlie-based Challenge Drilling, Cosmo can elect to pay 50% of the drilling costs in shares, based on the 20-day volume-weighted average price at the date of invoicing.
Cosmo Metals is a gold and base metals explorer with projects in Western Australia. The company’s projects include Kanowna, Winchester, Wurnda, and Yamarna.
Write to Aaliyah Rogan at Mining.com.au
Images: Cosmo Metals
