Cosmo Metals (ASX:CMO) has signed a terms sheet to acquire privately held La Zarza Minerals, which holds tenements comprising the Kanowna Gold Project.
The Kanowna Gold Project is 1km west of Northern Star Resources’ (ASX:NST) ‘world-class’ Kanowna Belle gold operations which has produced more than 5.4 million ounces of gold since 1993.
The 20km-square Kanowna project comprises 12 prospecting licenses 13km by bitumen road east of Kalgoorlie in the Eastern Goldfields of Western Australia.
Cosmo Managing Director James Merrillees says the execution of a terms sheet represents an exciting opportunity for the company.
“The potential at the KGP is compelling with proven gold mineralisation adjacent to the world-class Kanowna Belle deposit including headline drill intercepts of 18m @ 5.3 g/t Au and 10m @ 4.7 g/t Au. The company has identified widespread near-surface gold mineralisation at the KGP associated with NE trending structures analogous to the Fitzroy Fault, which controls mineralisation at Northern Star’s adjacent +7Moz Kanowna Belle gold project.
These NE trends have not been well targeted at the KGP and present exciting new exploration targets to guide future exploration at the KGP. Drill-ready targets have already been identified with this association at Don Álvaro, Laguna Verde and WKL, along with numerous shallow aircore intersections that have never been followed up.
The acquisition of the Kanowna Gold Project will complement the Company’s existing base metals and lithium portfolio at Yamarna and is a low-cost entry into the prolific Eastern Goldfields adjacent to world-class projects with exceptional infrastructure.
I’m also pleased to announce the support of existing major shareholders for a private placement to raise $300,000 to part fund the Kanowna Gold Project acquisition and for working capital purposes.”
The KGP is covered by shallow transported sediments with limited outcrop. The interpreted geology
comprises Archaean sediments interbedded with volcanic-related felsic and porphyritic rocks. In places
quartz-felspar porphyries intrude the sedimentary sequence.
Structurally the Project is intersected by a 6km length of the Reward Shear Zone, a series of parallel shear
zones trending west-northwest to east-southeast, which mirror the Kanowna Shear southwest of Northern Star’s Kanowna Belle gold deposit.
Gold mineralisation at Kanowna Belle is controlled by the Fitzroy Shear Zone, an east-northeast trending
splay off the Kanowna Shear.
Like the Kanowna Shear, several east-northeast trending splays and crosscutting structures have been
identified along the Reward Shear, however these have not been targeted by historical explorers despite
encouraging gold intersections associated with these cross-cutting features.
Write to Adam Orlando at Mining.com.au
Images: Cosmo Metals
