Cauldron Energy Ltd’s (ASX:CXU) (OTCMKTS:CAULF) (FRA:UFX) drilling proposal to test high-quality targets at its Blackwood Gold Project has been conditionally approved by Victorian regulators.
Earth Resources Regulation (ERR) and the Department of Environment, Land, Water and Planning (DELWP) has approved the low impact surface drilling proposal, subject to a review of the company’s communication plan and its commitment to further engagement with local community which the company initiated late last year.
Cauldron intends to drill test the highly prospective area around Rogers Big Hill, Eldorado and Homeward Bound which was highlighted following a review of historic exploration data and mining records.
The company also plans to drill test further high priority targets to the north, near Barry’s Reef, to test the down plunge extension of mineralisation from platforms established in the Tyreconnel Adit.
However, because this work is not defined as low impact exploration the regulatory approval process is lengthy and is yet to be finalised.
“First regulatory step”
The company’s exploration plans are geared towards achieving its twin goals of expanding the mineral resource and finding the fastest method to commence underground mine production to generate cashflow.
Cauldron chief executive officer Jess Oram said: “We are pleased to have achieved the first regulatory step and to be moving forward with drill testing this high-grade gold project.
“Cauldron has completed many hours of careful investigative work to develop high quality targets and is eager to get started.”
Mine scale geology and prospect map, significant drilling intercepts with historic mining activity.
Long lode system
The results of a comprehensive project-wide data collation, compilation and re-interpretation process has outlined a long trend of gold lodes as having very high exploration potential.
The targeted long lode system can be broadly subdivided into two areas:
The Central Area, centred on Rogers Big Hill, incorporating Rogers, Eldorado and Homeward Bound which has received approval sufficient to allow the company to plan and finalise the logistics of the drilling program; and
The Northern Area, centred on Barry’s Reef, incorporating the Grace Egerton, Annie Lawrie, Sultan to North Sultan gold bearing lodes and has a planning proposal that is yet to be approved by regulators.
Simultaneous drilling programs
The company is seeking suitable drilling contractors to complete both programs at Barry’s Reef and in the Rogers Big Hill area concurrently.
If the approval for the underground work at Barry’s Reef is not received soon Cauldron will not delay drill-testing of Rogers Big Hill, Eldorado and Homeward Bound.