Forrestania Resources (ASX:FRS) is the latest explorer to lock in a ‘drill for equity’ deal, paving the way for maiden drilling to begin at the Bonnie Vale Gold Project in Western Australia.
The company has secured a reverse circulation rig to start a 21-hole, 1,600m drilling program at the Ada Ann Prospect this week.
Topdrill has agreed to take part of its payment in Forrestania shares.
More drilling contractors are agreeing to this type of deal as junior explorers look to make their exploration dollars go further.
Topdrill has done this type of deal with several explorers this year including Aurumin (ASX:AMN), Meeka Metals (ASX:MEK), Torque Metals (ASX:TOR) and Brightstar Resources(ASX:BTR).
Forrestania Chairman John Hannaford says this is the first of several drill programs planned for the Bonnie Vale Project with the “high-grade” Ada Ann prospect the first target area.
“We are pleased to have secured an RC rig from Topdrill, which has continued to support our exploration programs and have agreed to receive shares as part payment for this campaign,” he says.
“We are drill testing several known areas of mineralisation and looking to extend the prospect significantly, as it is open in all directions.”
The program, which will start on October 23, will test extensions north and south of known mineralisation, as well as at depth
It will also assess the potential for an additional zone of mineralisation around an area of historic drill spoils that returned grades of up to 49 grams per tonne gold.
Forrestania is exploring for gold, lithium and copper in the Eastern Goldfields, Forrestania and Southern Cross regions of Western Australia.
The Bonnie Vale Project is located in the Eastern Goldfields region, with the tenements located within the Norseman-Wiluna Greenstone Belt of the Yilgarn Craton.
Forrestania holds 11 exploration licences and has submitted four exploration licence applications covering 1,000km2 in total.
The tenements are predominately non-contiguous and scattered over 300km length, overlying or on the margins of greenstone belts.
Write to Angela East at Mining.com.au
Images: Forrestania Resources
