Argonaut Resources NL’s (ASX:ARE) drilling has significantly increased the potential for a commercial gold deposit at its Eastern Goldfields joint venture in Higginsville, Western Australia.
Highlights from a program of 19 reverse circulation drill holes at two prospects include:
- Amorphous prospect: 11 metres at 2.76 g/t gold from 77 metres, including 6 metres at 4.62 g/t gold from 81 metres.
- Footes Find prospect: 4 metres at 5.02 g/t gold from 40 metres and 8 metres at 1.68 g/t gold from 30 metres.
Importantly, the drilling has increased the potential for a gold deposit at Amorphous by demonstrating improved continuity of gold grades along strike.
The Amorphous and Footes Find targets are located 5 kilometres along existing roads from an operating mill and presents an excellent opportunity for a meaningful, near-term exploration outcome.
Geologically, Argonaut’s prospect package sits within the Norseman-Wiluna Belt, a belt of ancient rocks endowed with gold and nickel that sits within the broader Yilgarn Craton.
It is worth noting that circa 70% of Australia’s historical gold production has come from the Yilgarn Craton and most of that from the Norseman-Wiluna Belt.
Argonaut’s goals are to explore for near-surface oxide gold in areas with historic shallow drilling results and to target deeper primary gold mineralisation at previously untested depths.
The company is now planning follow-up drilling to define the strike extents of the Amorphous and the Footes Find targets.
Joint venture terms
Argonaut has the right to earn an 80% interest in the Eastern Goldfields earn-in joint venture according to the following terms:
- 51% interest in the tenement package in exchange for completing $500,000 in exploration expenditure within two years of commencement; and
- a further 29% interest, for a total of 80%, for completing an additional $1,500,000 in exploration expenditure within a further three years.