Cauldron Energy Limited (ASX:CXU) (OTCMKTS:CAULF) (FRA:UFX) has made progress in identifying prospects of high value with significant potential to expand the existing mineral resource at its Blackwood Goldfield project in Central Victoria.
Results of a project-wide and comprehensive data collation, compilation and interpretation of historical data have highlighted the potential of Rogers Big Hill.
More than 250 underground workings
The largely forgotten Blackwood Goldfield has been inactive since the late 1980s, but contains more than 250 underground workings, predominantly mined during the Victorian gold rush of the 1850s.
Many of the mines were significant operations venturing up to 100 metres below surface.
The most significant operation, Sultan mine, was worked to an estimated depth of 230 metres before water ingress halted mining.
New exploration model
Areas having historically significant production of gold are being reassessed and incorporated into a new exploration model.
This will help Cauldron achieve its twin goals of expanding the mineral resource and finding the fastest method to commence underground mine production to generate cashflow.
Bonanza grade gold mineralisation
Cauldron said it had found, in the historic record, near-surface bonanza-grade gold mineralisation occurring at Rogers Big Hill and projecting to depth.
The prospects in the north of the area near Homeward Bound are likely to project south and add to the stack of lodes identified at Rogers Big Hill.
Next steps
Cauldron will seek approval to drill high-priority targets in the Central area, defined by the newly compiled exploration model.
The existing model provides the opportunity to expand the mineral resource in the Victorian-style of narrow high-grade gold mineralisation by applying contemporary understanding of controls of gold mineralisation to the entire Blackwood Goldfield.
It will also work with residents to minimise the impact locally, highlighting many benefits.
The Central area is referred to as Rogers Big Hill and comprises three historical mining zones namely Rogers Big Hill, Eldorado and Homeward Bound.
Rogers Big Hill prospectivity
Potential exists to increase the mineral resource at Rogers Big Hill as it shows a geological pattern like the Sultan Mine, where multiple parallel lodes trend in a corridor toward the north and south, reminiscent of those found elsewhere in the Victorian Goldfields.
Given the evidence, the linear trend of these lodes can be interpreted to continue within 100 metres west of the Rogers Big Hill lodes.
This exploration target stands alongside the potential provided by the Sultan mine lines-of-lode to the north and Simmons lines-of-lode to the south.
Blackwood Goldfield
The Central tenement area shows a multitude of lines-of-lode having two west dipping reefs and a smaller lower-grade east dipping spur system.
The Rogers Big Hill Prospect appears to be defined by two vertical to steep west dipping reef systems, namely the Western and Main reefs.
Western Reef appears to be under-exploited at surface where pit exposures contain veins as wide as 0.6 metres averaging 351 g/t gold in assays.
This reef is interpreted to continue with high-grades and similar width as that intersected with BWD7.
The Main Reef appears to have a similar attitude to the Western Reef but is thicker.
The prospect is 750 metres long and remains open down-plunge and along-strike.
Cauldron will minimise surface disturbance and utilise traditional underground mining methods and wherever possible, use underground exploration methods.