Octagonal earns 70 per cent in Lucky Bay

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THE DRILL SERGEANT: Octagonal Resources has earned 70 per cent equity in tenements comprising the Lucky Bay South Joint Venture at the Hogan’s project, in Western Australia.

The Hogan’s project is located 70 kilometres southeast of Kalgoorlie and 30 kilometres northeast of the 12 million ounce St Ives Goldfield.
 

The Lucky Bay South Joint Venture comprises two exploration licences covering 38 square kilometres of Archaean greenstone located adjacent to the south of the Salt Creek mine and Lucky Bay prospect, discovered by Integra Mining.

 

Source: Company announcement.

Octagonal has the potential to earn an additional 10 per cent equity in the tenements (increasing its total equity to 80 per cent) by spending an additional $150,000 on exploration.

The company’s JV partner, Gold Attire, will be Free Carried until a Decision to Mine is made after the completion of a Feasibility Study.

A program of aircore drilling was completed at the Burns prospect between May and August 2011, which intersected significant zones of gold anomalism including:

–    12 metres at 0.3 grams per tonne gold from 68 metres to the end of hole;

–    3m at 0.9 g/t gold from 44 metres;

–     23 metres at 0.5 g/t gold from 18 metres to the end of hole;

–    6 metres at 0.6 g/t gold from 78 metres;

–    4 metres at 0.6 g/t gold from 71 metres;

–    6 metres at 0.2 g/t gold from 20 metres;

–    4 metres at 0.4 g/t gold from 42 metres to the end of hole; and

–    8 metres at 0.3 g/t gold from 20 metres.
 
The company said it considers these results define two broad target areas that are not constrained by drilling where they trend under salt lake cover.

“The eastern gold anomaly extends over 300 metres and is associated with variable epidote and biotite altered high-magnesian basaltic rocks,” Octagonal said in its announcement to the ASX.

“The western gold anomaly strikes broadly north-south, extends over greater than 1,000 metres strike length, and is associated with both altered high-magnesian basaltic and intermediate intrusive rocks.”

Octagonal is advancing these exploration target areas in anticipation of bedrock drilling during early 2012.

A 100 hole infill land aircore drilling program, totalling 4,500m, is currently being completed to better define the distribution of gold in regolith anomalism and provide the company with refined targets for reverse circulation or diamond drill testing.