Stavely Minerals Ltd (ASX:SVY) has been granted the exploration licence covering the high-grade New Golden Gate Gold Mine, part of its Mathinna Gold Project in Tasmania, for an initial four year term.
A review of previous exploration has highlighted shallow, wide and high-grade gold mineralisation which remains open at depth and along strike.
The company has also secured the priority application rights over two additional areas which cover most of the Mathinna-Alberton goldfield.
These two exploration licences are expected to be granted in the coming months.
“Potential to discover additional reefs”
Stavely Minerals executive chairman Chris Cairns said: “The historical production of 254,000 ounces of gold from the New Golden Gate Mine was primarily sourced from four main high-grade ore shoots of around 50,000 ounces each with a vertical extent of between 150 metres and 300 metres.
“The potential to extend the known mineralisation along strike and at depth is considered excellent and, as at least two of the productive reefs had no surface expression, the potential to discover additional reefs is also considered very high.
“We are very excited to be planning our first drill campaign and hope to be drilling next month.”
Four high-grade ore shoots
Highlighted intersections include:
11 metres at 8.6 g/t gold from 59 metres, including 6 metres at 11.5 g/t from 64 metres;
10 metres at 8.8 g/t gold from 45 metres, including 3 metres at 23 g/t from 46 metres;
16 metres at 4.8 g/t from 32 metres, including 8 metres at 8.5 g/t from 40 metres;
7 metres at 10.6 g/t from 110 metres; and
17 metres at 3.7 g/t gold from 14 metres.
Numerous additional 3-4 metre wide intersections of greater than 10 g/t gold were also reported.
With the review of previous exploration nearing completion, Stavely’s focus has moved from data review to preparing ground-based activities.
These include the completion of an environmental baseline study for the project area to determine the extent of historical disturbance and to identify and protect any flora or fauna of significance.