Far East Gold Ltd (ASX:FEG, OTC:FEGDF) has passed a milestone by satisfying the earn-in expenditure obligations to acquire and retain a 90% interest in three projects in the Mount Coolon and Nebo areas in Central Queensland.
The three projects are Hill 212 Gold Project, Bluegrass Creek Gold Project and Mount Clark West Copper-Gold Project.
Additionally, FEG has entered into a new earn-in agreement and has fully acquired a 90% interest in the Reedy Creek project which directly adjoins the company’s Hill 212 and Bluegrass Creek tenements in the Mount Coolon area.
The Reedy Creek Project covers ~3,840 hectares which includes the interpreted structural corridor linking the company’s three projects in this location, creating a large highly prospective exploration project of about 8,000 hectares.
Securing the ‘missing link’
FEG CEO Shane Menere said: “It was a strategic decision by Far East Gold to acquire the Reedy Creek tenement and now join Hill 212 and Bluegrass Creek into a large single project by securing the ‘missing link’ that covers the identified structural corridor between these projects.
“We are excited by the current neighbouring exploration underway by Newmont for them to earn into the Mount Coolon area, reinforcing the remarkable prospectivity of our projects.
“Additionally, the revised commercial arrangements for our entire Australian portfolio mean we have realized the value we have created in these projects without any further expenditure.
“This puts us in very good standing to attract the right partners to progress these projects.”
Reedy Creek Project
The Reedy Creek Project area is along strike of several interpreted structural corridors that appear to control defined alteration and mineralisation within the adjacent Mount Coolon Project’s tenement areas.
Recent spectral mapping has identified zones of alteration similar to those associated with the Mount Coolon Project’s reported gold deposit areas.
The Mount Coolon Project’s epithermal gold mineralisation at the Glen Eva, Eugenia, Sullivans and Verbena prospects and the historical Koala Mine appear to be controlled by several interpreted northwest-southeast trending structural corridors.
Using the distinctive alteration signatures for the Mount Coolon Project’s prospect areas, FEG commissioned an Aster and Landsat satellite imagery evaluation of the Hill 212, Bluegrass Creek and Reedy Creek project areas.
General geology map for the Hill 212, Bluegrass Creek and Reedy Creek projects’ tenements. Geology is dominated by rhyolite and dacitic volcanics over most of the project area with the Bluegrass granite in the northeast portion of the project area.
Using the Mount Coolon Project’s Verbena prospect area as a type section to calibrate their remote sensing algorithms, Earthscan was able to define similar alteration signatures within the project area including the newly acquired Reedy Creek tenement.
The survey identified 18 spectral anomalies with signatures similar to those marking the Mount Coolon Project’s gold deposit areas. The remote sensing interpretation is corroborated by regional airborne magnetic data which infers continuation of interpreted structural corridors across all three tenements.
Image shows interpreted ASTER spectral anomalies occurring within Hill 212 and the adjoining Blue Grass Creek tenements.
FEG intends to conduct a program of detailed surface mapping to verify the Aster and Landsat interpretation within the Hill 212, Bluegrass Creek and Reedy Creek project areas with the objective of defining drill targets.