Great Southern Mining Ltd (ASX:GSN) has completed a sale and purchase agreement to acquire the historical Cox’s Find Gold Mine and surrounding property about 70 kilometres north of Laverton, WA.
The purchase includes three granted mining leases incorporating the historical mine that produced approximately 77,000 ounces of gold at a grade of around 21 g/t.
This property is within a world-class gold district and in close proximity to multiple gold operations and infrastructure.
As part of the agreed consideration of the acquisition, the company has made a cash payment of $150,000, which is in addition to a cash payment made previously.
“Exceptional opportunity for exploration”
Great Southern Mining’s executive chairman John Terpu said: “The management team has completed the due diligence process and we are very encouraged by the prospectivity and exploration potential of this project.
“The process enabled us to collate more than 80 years of historical production, exploration and technical data which has shed new light on the potential for this project.
“The company views the Cox’s Find as an exceptional opportunity for exploration and resource growth of an old high-grade gold mine with potential near-term production scenarios given its close proximity to several significant processing facilities and infrastructure.”
Terpu added: “In addition to the Mon Ami Gold Project in Laverton, Cox’s Find adds another low-risk brownfields exploration project to the company’s portfolio with the immediate focus on drilling programs targeting resource growth through extensions of the high-grade reefs as well as near-mine targets.”
The company intends to begin exploration immediately following the receipt of all regulatory approvals.
A systematic program will target the definition of the high-grade open-pit gold resources in the near-term.
The first pass exploration program to focus on delineating the ore body close to the surface and chase the down-dip extension with a view to gaining an understanding of the primary structural controls on mineralisation, validating the structural model and identifying additional exploration targets for follow-up.
Exploration potential
Exploration potential includes:
- The potential to extend the mineralised envelope and high-grade shoots throughout the underground workings;
- Known mineralisation has not been mined to date since the conclusion of mining in 1942;
- High-grade gold interceptions noted from drilling undertaken in the 1990s. Additional drilling at close-spaced intervals is warranted; and
- Previous soil samples and exploratory drilling has identified several other prospect areas on the tenements which will be targeted during the coming drilling program.
The area is well serviced by infrastructure and numerous opportunities exist to potentially treat the ore in the district.
Re-sampling and resourcing of the surface stockpiled ore, with a view to treatment of the ore, will also be a priority for the company.