Walkabout Resources Ltd (ASX:WKT) has strengthened its gold and base metals strategy in the UK with the acquisition of three highly prospective exploration licences in southwest Scotland.
The company has finalised a farm-in agreement with private exploration company JDH Exploration covering the licences.
They cover 746 square kilometres of highly prospective ground for precious and base metals.
Walkabout’s chairman Trevor Benson said, “Walkabout is growing its portfolio of highly prospective exploration licences for gold and base metals within the UK which has seen a significant lack of exploration for decades.
“The introduction of modern exploration technology and strategy to historical mining areas is a key enabler to unlocking further value in areas previously considered closed to further mineral value enhancement.”
Along Southern Uplands fault
The projects are along the Southern Uplands fault, which has a long history of base metals and gold mining and exploration.
They include several historical high-grade lead-zinc and silver mines, and gold and copper targets.
None of the prospective areas has been subjected to modern-day, systematic exploration.
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They lie along a large trend, related to the Caledonian Orogeny, which can be traced from the eastern seaboard of North America, through Northern Ireland and Scotland and into eastern Greenland and parts of western Scandinavia.
Location of the licences in relation to mineral occurrences along the Caledonian Orogeny.
Through the acquisition of British Geological Survey (BGS) datasets and work completed by others, numerous exploration targets have already been identified.
Historical mining area
The area is known for its historical lead-zinc mining and there are several old shafts and adits in the area associated with two large-scale structures.
Although little information is available regarding the historical mining data, records indicate that mining was predominantly done at depths less than 70 metres from surface.
This concentrated primarily on the lead and to a lesser extent silver, such that when zinc-rich areas were encountered, they were left in-situ.
Gold not assayed
Historically, gold was also not assayed in stream sediments and very few areas where gold was identified in stream panning have been followed up.
The targets identified from BGS datasets include:
- Quartz vein-hosted gold occurrences within meta-sediments; - Lead-zinc plus silver plus gold in veins related to intrusions; - Mafic intrusion-related nickel-copper plus silver plus gold plus PGE mineralisation; and - Porphyry copper plus silver plus gold related to intrusions.
Reviewing available data
The company is reviewing all available historical data and ranking targets in terms of priority for exploration.
In addition, the company through the vendor is negotiating with stakeholders with regard to access and local regulations.
A detailed heritage survey is being undertaken in order to identify areas of sensitive historical heritage and to engage with relevant stakeholders in agreeing upon the exploration strategy.
Farm-in terms
Shackleton Resources Ltd, a Walkabout subsidiary, will earn 75% of JDH Exploration by sole funding stages I and II exploration.
Stage I involves a minimum spend of £100,000 on exploration and stage II involves a further £150,000 on exploration on the licences during the 12 months following the end of stage I.
Shackleton has paid JDH £50,000 for compensation of previous expenditure.
If Shackleton proves a JORC-compliant gold inferred resource of a minimum of 500,000 ounces on the licences, it shall pay in cash the amount of £250,000 to the vendor.
Upon Shackleton making a decision to mine in respect of the licences, the purchaser shall pay the amount in cash of £500,000 to the vendor.
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Walkabout’s exploration strategy in this region is to assemble a compelling portfolio of prospective exploration titles over prospective geological trends.
It has acquired property in Northern Ireland and identified multiple targets for drilling at the Tyrone licence from a SkyTEM electromagnetic airborne survey.
These targets fit in well with the company’s volcanogenic massive sulphide (VMS) exploration model supported by soil geochemistry and underlying structures.