Transol Corporation (ASX: TNC) has delivered highly promising results from metallurgical testwork that show gold recoveries of up to 90% from its Johnnies Reward Gold Project in the Northern Territory.
The results confirm that the mineralisation at the project is amenable to processing utilising conventional carbon-in-pulp technologies.
Transol plans to pursue expanded exploration programs at Johnnies Reward in 2013.
Johnnies Reward is a major iron oxide copper gold system containing over 20 square kilometres of high grade copper and gold copper mineralisation.
The project is located 75 kilometres northeast of Alice Springs within the Strangways Metamorphic Complex of the Proterozoic Arunta Block and has a 50 year history of small scale copper mining and sporadic periods of exploration.
Significant gold mineralisation was identified by Alcoa during a six hole diamond drilling program in 1984 which targeted mineralisation extending below the Johnnies Reward gossan containing anomalous values of gold and copper.
Drilling by Transol has since confirmed high grade gold mineralisation extending for 200 metres down plunge from surface.
The Johnnies Reward Project, which was previously known as the Southern Cross Bore Project, is the subject of a joint venture with Sturt Resources.
Transol has acquired an immediate 51% interest in the project through the issue of 60 million shares to Sturt.
Transol and Sturt will fund $350,000 respectively in their proportionate interests (Transol 51% and Sturt 49%) on the planned work program.
Upon completion of the work program, Transol will have the right to acquire Sturt’s interest to move to 100% ownership of the Johnnie’s Reward Project.
Proactive Investors Australia is the market leader in producing news, articles and research reports on ASX “Small and Mid-cap” stocks with distribution in Australia, UK, North America and Hong Kong / China.