Cauldron Energy Ltd (ASX:CXU) is in the process of implementing final underground infrastructure and ground support for its upcoming drilling campaign targeting high-grade gold mineralisation at its Blackwood Gold Project in Victoria.
The company has established operations in the Eastern reef area of Blackwood, encompassing the Annie Laurie and Grace Edgerton reef systems, where Cauldron is pursuing a potential high-grade zone in the hanging wall of the reef. CXU expects ground support works to be completed within the next four weeks.
Cauldron has moved to continue exploration of this high potential zone with the application for a Prospector’s Licence. This application has now been accepted and progressed through the grant process by the Earth Resources Regulation division of the Department of Jobs, Precincts and Regions.
Preparation for drilling has continued unabated despite high rainfall, a localised earthquake and COVID-19 lockdowns, but lack of access to consumable materials and experienced personnel has hindered ground support operations.
Safe access secured
Two diamond drill cores have already been drilled targeting a potential high-grade zone in the hanging wall of the reef. The intended targets could not be reached before both holes intersected the Annie Laurie void, necessitating a redesign of the first phase of the program.
Ironically, the Annie Laurie void is a promising indicator that confirms initial interpretations of historic high-grade zone locations were accurate. Interpretation of this new target area results from a comprehensive technical review of all available historical reports.
The company moved to secure safe access between the Annie Laurie reef and the Tyrconnel Adit by stabilising the intervening area, allowing Cauldron to approach the drill targets from the western and hanging wall sides of the reef.
While these stabilising efforts were always intended, CXU was forced to move them forward in the drill program plan when the team’s drilling efforts were frustrated by the Annie Laurie void, formed by complete extraction by historic miners.
“Unique launching pad”
“The confidence we are gaining in stabilising this sedimentary package of rocks, historically known to host the high-grade gold mineralisation, frees up the safe use of this access infrastructure, becoming as useful for Cauldron as it was for the miners in the 1860s,” Cauldron executive chairperson Simon Youds said.
“Delays suffered in obtaining consumables and equipment are temporary, however, the experience gained in safely securing the access across the eastern reef system will stand the operational team well for the planned future work as we access the drill platforms to test the unmined sections of the western reef system below 100 metres depth.
“The Tyrconnel Adit, at nearly 100 metres below the surface, leading to the network of western reef workings is a unique launching pad to explore and test this area which has had such a prolific gold production history.
“In parallel with this work, the team at Blackwood have continued to develop innovative sustainability projects with a unique holistic circular economy approach. These projects lay the foundations to ensure that surface features remain protected and sustainability goals are achieved for the underground operations.
“This approach means that Cauldron’s work will continue to go unnoticed by environment and residents, as it has to date, and potentially enhance it in the future as the community and government perceive its potential value for the state of Victoria.”
The stabilisation of the Tyrconnel-Annie Laurie intersection will finally allow the team closer access with the diamond drill to test this prospective area. As per the initial planned strategy, the Tyrconnel access will provide a platform for short and, if successful, multiple intersection points into the first of what the company believes to be many similar areas of interest.
While securing the reef junction has occurred earlier than planned, the company believes taking the action now will stabilise key access infrastructure serving the operation well for the future work.
Large-scale remediation projects
Cauldron has pursued green energy and environmental initiatives for its projects, including its latest soil remediation and mine water treatment projects at Blackwood. Partnering with local groups, Cauldron intends to use waste rock from the historical mines on-site to improve soil that has been degraded over time in various parts of the state.
The company says these efforts will also assist in improving sub-soil drainage in parallel with soil improvement techniques.
A sediment dam system historically established to allow the drainage of water from the Tyrconnel Adit has been independently shown to be working as designed. The Cauldron team has improved existing overflow systems with timely maintenance and committed to continue this in line with its work approval and environmental bond submitted to Melbourne Water.
In conjunction, Cauldron has engaged with a local business entity to use algae in the cleaning and treatment of the natural, arsenic-rich groundwater. This is a tried-and-tested method used globally to treat wastewater for various agricultural, industrial, and commercial purposes.
The resulting clean water will be used to restock local river systems, provide a consistent source of water for all fauna, create a form of ‘wetlands’ in the local area and contribute to the long-term mitigation of climate change in terms of drought and bush.
About Cauldron and Blackwood
Cauldron is an exploration and development company with focus on a green future. Its core gold project is centred on the Blackwood Goldfield of Victoria where the company intends to pursue historically identified mineralisation across the highly prospective area around Rogers Big Hill, Eldorado and Homeward Bound.
Cauldron also plans to acquire a sand project comprising a number of river sand leases at the mouths of the Carnarvon, Onslow and Derby rivers in Western Australia.
The Victorian Goldfields is one of the world’s most prolific gold provinces accounting historically for more than 2% of world gold production and 30% of Australian gold production since 1850. From 1864 to 1980 the Blackwood Goldfield produced about 218,000 ounces of gold but has seen no systematic or significant exploration activity until now.