Kingstone Resources (ASX: KSN) has been readmitted to the ASX after raising $2.06 million to fund exploration of its iron oxide, copper and gold prospective tenements in the Gawler Craton area of South Australia.
The company has already booked a 1,573 kilometre HeliTem survey to define anomalies for drill targets at its Cultana joint venture project.
This will begin on 23 April 2013 and will be carried out over all seven defined IOCG gravity targets to detect electro magnetically anomalous Cultana subsuite rocks in outcrop or under shallow cover.
Kingstone has a 25% interest in Cultana while Strategic Energy Resources (ASX: SER) holds the remaining 75%.
The two companies are also equal joint partners at the Myall Creek Project.
Both projects are at an advanced stage of targeting and are ready for drill testing for IOCG deposits.
The presence of old copper mines, previous drilling, rock chip sampling and geophysical surveys in the area confirm the prospectivity.
Cultana
The Cultana Lease, EL 5010, covers an area of 321 square kilometres within the Cultana Army Training Area south of Port Augusta in South Australia.
Past exploration in the Cultana area has been limited, due to restricted access by Defence.
Serem Australia explored for copper in 1971 and drilled three shallow holes, all of which reached crystalline basement rocks while in 2004, a Falcon gravity survey defined targets of potential Olympic Dam style (IOCG type) mineralisation.
Inversion gravity modelling suggests high density material consistent with the gravity signitures of IOCG style deposits north of the Cultana lease along the eastern margin of the Gawler Craton, notably Olympic Dam, Prominent Hill and Carrapateena.
Myall Creek
The Myall Creek Copper Project (EL5011) covers an area of 381 square kilometres and is located on the southern Stuart Shelf between Whyalla and Port Augusta, a highly prospective part of the eastern margin of the Gawler Craton.
It includes a 15 kilometre belt with drill intersections above 1% copper with potentially higher-grade ready to drill prospects.
The licence area is immediately west of the Torrens Hinge Zone and close to the sites of the Hiltaba granites. Copper and base metal mineralisation has been delineated over a wide area and in a range of the Proterozoic host rocks in this region.
Kingstone holds interests in eight exploration licences – including Cultana and Myall Creek – in the Olympic Arc corridor, the most prospective zone for IOCG deposits in the Gawler Craton.
It has 82.35 million shares on issue of which a total of 35.6 million shares are quoted and the balance remain as restricted securities.
The company currently has $2 million in cash at hand.
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