THE BOURSE WHISPERER: Empire Resources (ASX: ERL) has more than doubled the size of its exploration acreage in the newly-discovered Point Kidman gold domain, located 40 kilometres east of Laverton in Western Australia.
The increase takes Empire’s Point Kidman acreage to a total of 780 square kilometres.
Source: Company announcement
Empire took the decision to apply for additional tenements on the back of new structural studies over the area following the recent discovery of surface gold nuggets spread over a 2.5km long zone.
Empire has applied for four new exploration licences covering an area of approximately 310sqkm.
“The acquisition of the four additional Point Kidman ELs further adds to Empire’s significant suite of copper-gold and gold projects located throughout Western Australia including our advanced high grade Yuinmery copper-gold and Penny’s Find gold projects,” Empire Resources managing director David Sargeant said in the company’s announcement to the Australian Securities Exchange.
“Our enlarged exploration footprint at Point Kidman, including the newly discovered 2.5 kilometre long nugget zone, overlies possible granite hosted gold mineralisation – a style similar to the Laverton Belt’s Granny Smith gold mine, a large gold deposit partially located within granite, 50 kilometres to the southwest of Point Kidman.
“The surface nuggets were located on an extensional fault line where dolerite dykes have also been intruded and the pattern of faults closely matches the classic Reidal model used to predict favourable structural locations for finding gold deposits.
“Importantly, the surface gold nuggets were both numerous and spread over a very large 2.5 kilometre long zone exhibiting extensive quartz vein swarms and stockworks hosted by leached and weathered granite – with many of the veins showing limonitegoethite staining after sulphides.
“In addition, extensive soil sampling undertaken by the tenement holders around the area of the nugget discoveries has outlined a number of other gold and supporting pathfinder metal anomalies in the immediate vicinity.
“Significantly from Empire’s point of view, this new gold zone is in an area where there are no historical gold workings or previous exploration drilling although the Laverton region is one of the best gold endowed areas within the Yilgarn Craton.”
The new ELs are contiguous with Empire’s original six exploration licences at Point Kidman, an area the company considers to be structurally favourable for hosting large gold deposits, which it said was demonstrated by the association of surface nuggets with major fault structures in the area.
Empire acquired an initial 80 per cent interest in the Point Kidman gold project in September.
The company is currently planning a detailed aeromagnetic and structural study to be undertaken over the New Year on its Point Kidman acreage prior to confirming an initial drilling schedule.