Perth-based resources company Montezuma Mining (ASX: MZM) has been granted an exploration licence covering approximately 111km2 of tenure at Peak Hill.
The additional ground covers significant areas of gold mineralisation potential, as well as areas containing the Narracoota Formation rocks, which hosts Sandfire Resources’ recent copper discovery at its De Grussa Project.
Managing director Justin Brown said the approval paved the way for Montezuma to kick off exploration at Peak Hill.
“The grant of these licences opens the way for Montezuma to commence exploration over the new ground with the aim of extending the existing gold Resources at Peak Hill as well as assessing the potential for analogues to the recent copper discoveries along strike to the east,” Mr Brown said.
News of the company’s progress push shares up 2c, or 8.7 per cent, to 25c yesterday.
The new tenure contains high grade gold drilling intersections ready for follow up, as well as a number of regional targets comprising geochemical, rock chip and drilling anomalies.
The area also covers structural positions with significant potential to host extensions and/or repetitions of mineralisation near the known major gold mineralisation areas at Peak Hill.
Previous drilling highlights include 6m @ 21.2 g/t from 51m,4m @ 11.0 g/t from 27m, 2m @ 25.7 g/t from 52m and 8m @ 5.7 g/t from 10m.