Cyclone Metals Ltd (ASX:CLE) has acquired a key tenement at its 100%-owned Nickol River Gold Project, 10 kilometres east of Karratha in the West Pilbara region of Western Australia.
The acquisition of P47/1812 creates a contiguous block of tenements in the central Nickol River Gold Project area, where test pitting has recovered coarse gold.
Nickol River Project, acquisition of central key tenement P47/1812 to consolidate area for proposed drilling program.
CLE will issue 60 million fully paid ordinary shares at $0.002 per share and 30 million unlisted options with an exercise price of $0.003 each expiring two years from the date of issue to Stonefield Developments Pty Ltd.
This is a strategic move by CLE which enables it to consolidate the central drilling target area that includes contiguous tenements M47/401, M47/421 and M47/577.
Notably, the consolidated area covers the original gold mining leases (GMLs) owned by Kerry Harmanis’ Sir Samuel Mines NL, which was later renamed Jubilee Mines NL.
By increasing its targets through the acquisition, CLE can now prepare for a maiden drill program, based on an earlier initiated Sub Audio Magnetics (SAM) geophysical survey.
“It is with great pleasure I confirm that the acquisition of P47/1812 gives Cyclone Metals the opportunity to design a robust drill program over the central portion of the project area utilising the information from the test pit program and the Sub-Audio Magnetics interpretation from Southern Geoscience Consultants and we hope the drills will be turning soon,” Cyclone Metals director Will Scott said.
Pit program highlights first drill target
CLE’s recent pitting program highlighted the first target area for the company’s maiden drill program.
All the test pits were over historically prospected and worked ground, with recovered gold thought to be a small indication of the eluvial gold found over 140 years.
The company was pleased with the extensive reef structures uncovered by the pitting program.
Only a few reef systems are visible from the surface and the company believes that a drilling program utilising information from the SAM survey and the tests pits, can define the primary gold mineralisation.
The proposed drilling program will focus on tenements M47/401, 421, 577 and P47/1812 with the aim of testing the reef system to a depth of a maximum of 100 metres.
A Program of Work (POW) will soon be submitted to DMIRS.