THE DRILL SERGEANT: Cygnus Gold (ASX: CY5) has been kept busy of late at the company’s Joint Ventures with Gold Road Projects, a wholly-owned subsidiary of gold producer Gold Road Resources (ASX: GOR).
The Cygnus Gold – Gold Road JVs include the Lake Grace JV and the Wadderin and Yandina JVs covering an area of more than 5,000 square kilometres in the Wheatbelt region of Western Australia along the Yandina Shear, a largely unexplored regional structure interpreted to control the location of gold deposits such as Tampia, Griffin’s Find and Lake Magenta.
The current focus on the Lake Grace JV is the Hammerhead prospect, a target identified from regional aircore drilling of a zone of surface gold anomalism coincident with the prospective Yandina Shear Zone.
Recent aircore drilling at the Hammerhead prospect returned additional widespread, anomalous gold including:
3 metres at 0.35 grams per tonne gold from 52m; and
6m at 0.28g/t gold from 56m to end of hole.
Cygnus explained these intersections are associated with widespread anomalous gold pathfinder elements such as arsenic, copper, and molybdenum, and are in addition to the results reported in earlier announcements.
Anomalous gold and pathfinder anomalism have now been returned from four of eight broad spaced drill lines through transported cover over nearly 15km strike length of interpreted greenstone rocks at Hammerhead.
Work being carried out at the Wadderin and Yandina JVs is also targeting gold mineralisation associated with the regional Yandina Shear.
Due to the sparse outcrop in these large tenement packages exploration has been driven by detailed geological interpretation of geophysical datasets to map out the geology and structures thought to control gold mineralisation.
In addition to ongoing targeting at Hammerhead, recent exploration activity has included regional targeting on the Wadderin and Yandina JVs, which has identified a number of high priority targets for drill testing.
Cygnus indicated it is now planning a program to extend and infill the AC drill coverage at Hammerhead as well as deeper reverse circulation (RC) drilling under the best results to date.
The AC program will include first pass traverses across the higher priority Wadderin and Yandina targets.
These programs are planned to commence immediately post-harvest in late Q4.
“Even though early stage, the Hammerhead prospect is now a focus area on the Lake Grace JV where drilling programs are planned to commence over the coming months,” Cygnus Gold managing director James Merrillees said in the company’s announcement to the Australian Securities Exchange.
“Other targets on the Wadderin and Yandina JVs fill a pipeline of Joint Venture funded projects to be tested over the coming 6 to 12 months.
“I’d like to thank our partners Gold Road and acknowledge their support as we aim to emulate their success at Yamarna in the Southwest, an equally underexplored area within the prolific Yilgarn Craton.”
Gold Road has now reached the expenditure required to earn 51 per cent of the Lake Grace Earn-in project, and has elected to form a JV to earn an additional 24 per cent interest (75% in total) in the project by spending a further $500,000 within 18 months.
On the Wadderin Earn-in project, Cygnus and Gold Road have agreed to extend the minimum expenditure time required to achieve the $900,000 until December 31 2019 and extend the earn in period to 31 December 2020 where Gold Road is required to spend $1.6 million on exploration expenditure to earn 51 per cent.
All other terms remain unchanged.
The Hyden group of tenements were granted during September and these will be added to the existing Yandina JV.