NewPeak Metals Ltd (ASX:NPM) has kicked off a maiden drilling program at Cap Burn Gold Project in the Otago district of New Zealand to test a large, mineralised surface anomaly within the project’s East Block.
The diamond drilling is designed to test the gold potential associated with a broad 1,000 by 1,000-metre surface soil gold-arsenic anomaly.
An Alton Drilling track-mounted rig has been mobilised to the site and drilling has commenced.
The company plans to drill five holes this month and operations will break over the Christmas-New Year public holiday period with a restart planned early in January 2021.
Cap Burn transaction documents have been executed and NZ Ministry transfer approval has been submitted for processing.
“Important step forward in gold strategy”
NewPeak managing director David Mason said: “The commencement of our maiden drilling program at the Cap Burn Gold Project is an important step forward in NewPeak’s Gold exploration strategy.
“We are more than pleased to have begun drilling in one of the world’s top gold mining jurisdictions, Otago, New Zealand.”
“The project is early in its exploration process and the focus over the next few months is to test the mineralisation models and to discover and define other mineralised prospects.”
Cap Burn project
NewPeak acquired a large portfolio of gold properties in the Otago region of New Zealand, in its own right and through a joint venture with MRJV.
Cap Burn granted exploration permit EP60300 is part of this Otago gold portfolio and consists of two separate blocks, the East Block and the West Block, with a total area of 19.5 square kilometres.
Drilling program
The maiden drilling program at the project will firstly evaluate the large-mineralised surface anomaly in the East Block.
Three anomalous gold-arsenic targets have been identified within East Block with the planned drilling to test two of these.
By testing these targets at depth, NewPeak aims to gain a more comprehensive understanding of the relationship between the targets and to confirm the major structures along with seeking additional gold targets.
A series of at least 12 shallow and deeper diamond drill holes has been designed for a total of over 1,000 metres.
The program is fully funded and Alton Drilling is contracted to carry out the work utilising a track-mounted drill rig.
Argentine maiden drilling
A drilling program for the Cachi Gold Project in Argentina is now scheduled to start in early January 2021, after being delayed due to a COVID outbreak in Santa Cruz province, and the subsequent impact on drilling contractor mobilisation.
The drilling rig and crew contracted to carry out diamond core drilling for NewPeak, the Perforadora Santacruceña Drilling Company, is based at the Cerro Vanguardia mine.
According to the company, the stringent quarantine requirements in the Santa Cruz province makes finding a replacement for Perforadora Santacruceña unfeasible.