Cauldron Energy Ltd (ASX:CXU) (OTCMKTS:CAULF) (FRA:UFX) has welcomed approval from the Victorian Earth Resource Regulation (ERR) department for its program of work at Blackwood Gold Project.
Cauldron aims to re-establish access to more than 1.5 kilometres of existing underground tunnels crosscutting its major northern reef systems to target the down plunge extensions of the numerous gold reefs identified historically.
For the first time, the whole field can be viewed in a single licence with improved geological understanding of gold distribution which may include some of the bonanza areas that have been missed in the upper levels beneath the current shafts.
The company can now mobilise equipment and experienced personnel to re-establish access to the network of tunnels.
Tyreconnel adit access
Cauldron plans to target modelled high-grade plunges below the Sultana, Sultan and North Sultan shafts, with no impact on the surface.
The walk-in tunnel system can also be used to structurally map and sample the multiple reef structures identified from historical activities.
The drive crosses at right angles across the Eastern lodes including Annie Laurie and Grace Edgerton systems into and across the Western lode system, hosting the Pioneer, Mounters and Sultan shafts.
It also allows physical access to the key northern shaft areas of Pioneer and Mounters which were stopped by lack of pumping technology.
Accessing these areas for sampling grows the geological understanding but may also open up the area for potential production without significant time or cost.
Potential for multiple drill targets
The Blackwood Gold Project previously produced about 220,000 ounces of gold, grading between 16-23 g/t, with reported production of 73,313 ounces at 28 g/t from the Sultan shaft alone.
This historic infrastructure, worth many millions if it were constructed today, provides multiple well-positioned drill platforms which will enable the company to target the down plunge projection for the multiple reefs in the northern and central areas.
Historical reports indicate that lack of water pumping technology stopped continued down plunge mining of the high-grade shoots – not a lack of gold – and the company confidently expects to pursue multiple drill targets.
The company believes there is reasonable potential that some of the bonanza gold mined in the 1860s will remain unmined and accessible with some structural support work above the Tyreconnel level.