Forrestania Resources (ASX:FRS) is pursuing fieldwork and historic database compilation ahead of a maiden drilling program at the Ada Ann prospect after sampling delivered high grades of up to 49 grams per tonne.
The news sent shares up as much as 157% on Wednesday to an intra-day peak of $0.036.
Maiden drilling has been planned to test the extension and depth potential at Ada Ann, as well as a new zone of gold mineralisation, as soon as possible.
Ada Ann sits only 8km from Evolution Mining’s (ASX:EVN) 5.3 million ounce Mungari Operation and forms part of Forrestania’s Bonnie Vale Project in the Eastern Goldfields of Western Australia.
Forrestania, which has a $2.26 million market capitalisation, says fieldworks have been designed following recent site visits which returned sample results of 49 grams per tonne gold from unrecorded, historic drill spoils.
The company believes these results suggest potential for another zone of mineralisation in close proximity to known areas of historically drilled gold, possibly suggesting a parallel mineralised structure with mineralisation close to surface.
According to Forrestania, the results, coupled with a thorough database and Western Australian Mineral Exploration (WAMEX) review, have grown the exploration potential of Ada Ann and have flagged first-pass drill targets.
“The company is very encouraged by these highly significant gold results after a more thorough review of previous work at Ada Ann and follow up site visits, confirming a second prospective zone with high-grade grab samples from historic drilling spoils,” Chairman John Hannaford says.
“The developing gold story at this project can be quickly advanced to a potentially valuable asset for the company given the very favourable location nearby of several active mills and excellent logistics, with a haul road immediately adjacent to the project area.”
Meanwhile, planned lithium drilling at the Breakaway Dam asset has been postponed due to recent rainfall events. Drilling will go ahead once access to the site is achievable and the working areas are deemed safe.
Forrestania Resources is a lithium, gold, and nickel explorer in the Forrestania, Southern Cross, and Eastern Goldfields regions of Western Australia. The company is also exploring for lithium in the James Bay region of Quebec, Canada.
Write to Adam Drought at Mining.com.au
Images: Forrestania Resources
