Stavely Minerals identifies new gold prospect

THE DRILL SERGEANT: Stavely Minerals (ASX: SVY) has identified a new gold prospect at the company’s 100 per cent-owned Ararat project in western Victoria.

The identification of the new prospect has come after the company received encouraging results from recent soil geochemical sampling and rock-chip sampling at the CathcartHill prospect.

Stavely said its field personnel conducted the soil geochemical sampling program for primary analysis using a Niton® portable XRF analyser with check analysis conducted through ALS Laboratories in Brisbane.

The company did concede Niton® XRF units cannot be used reliably for analysis of gold in an exploration context unless in extremely high abundances.

However, it also stressed the units have previously proven to be effective for analysis of ‘indicator’ elements.

The company said its Niton results show a coincident arsenic and chromium soil sample anomaly confirmed by duplicate analysis by aqua-regia digestion and ICPMS determination which also returned coincident gold anomalism.

This anomaly extends over 800 metres in strike and remains open to the north and south.

Stavely indicated it will be extending the current soil sample grid in both directions, while a traverse of RC drilling is currently being planned.

“Collectively, we believe this exciting new prospect could be the weathered surface expression of a possible ‘Stawell-style’ gold system,” Stavely Minerals managing director Chris Cairns said in the company’s announcement to the Australian Securities Exchange.

“This anomaly is in the southern portion of the Cathcart Goldfield which had very significant historic alluvial and ‘deep lead’ gold production in the 1850s and 1860s but was not associated with any known hard-rock source, making it a very promising new exploration opportunity for us.”