Latin Gold (ASX: LAT) has undertaken a geological and data review of its Narracoota Project in Western Australia which has highlighted the potential for the project to host gold and/or VMS mineralisation.
The Narracoota Project lies around 75 kilometres southwest of Sandfire Resources’ (ASX: SFR) DeGrussa discovery, which is hosted by rock units of the Narracoota Volcanics.
Latin Gold’s project is interpreted to contain extensive widths of Narracoota Volcanics in at least three structural repetitions as well as a range of stratigraphic units.
The review focused on all historical exploration data as well a re-interpretation of the geological data to better understand the geology and structure within the project area.
Six target areas have been identified that are planned to be tested in the 2013 field season.
The study identified a number of new gold and volcanic massive sulphide target areas, based on both geology and interpreted structure.
Additionally, a number of previously defined but undrilled VTEM anomalies were re-analysed and shown to be valid and high priority massive sulphide drill targets.
A two to three phase drilling program is planned, with the initial phase comprising up to 3,000 metres of aircore drilling penned in for late May.
Latin Gold has allocated an exploration budget of around $1 million for the three phase program.
Aircore drilling will be followed by a reverse circulation program to follow up any drill anomalies generated in the initial phase and test at depth a number of the pre-existing VTEM anomalies.
A third, follow up program of reverse circulation drilling is also planned pending the outcome of the earlier drill programs.
Latin Gold is well funded to continue exploration with just over $3 million at the end of the December quarter 2012 and an approved drilling grant of $65,000 from the Western Australian Government.
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