THE BOURSE WHISPERER: Perth-based Firestrike Resources has completed negotiations with private Colorado-based company Escalante Star LLC to establish an incorporated joint venture.
The newly-formed JV has been established to explore and develop the Elephant Canyon gold and base metals project, located in Elephant Canyon, Utah.
Source: Company announcement
Firestrike said it is moving ahead with plans to commence RC drilling across a multiple fissure vein system known as the Coronado trend, which the company said is considered to be part of a lager epithermal system associated with porphyry related base metals, and precious metals mineralisation.
“This project is considered to have strong potential for gold, copper plus other base and precious metals,” Firestrike Resources said in its ASX announcement.
“It is geologically similar to the Rio Tinto mine at Salt Lake City (Bingham Canyon/Kenecott) and the closer Tintic mining district where Rio Tinto is also seeking to bring Andover Mining Corp. Big Hill copper gold project into production.”
Firestrike Resources managing director David Holden recently paid a visit to the project area, which the company said had confirmed the presence of historical pits and shafts throughout the property demonstrating significant historical mining.
The visit also confirmed the presence of copper and sulphide mineralisation in outcrop throughout mine waste dumps and exposure of skarn alteration within limestone.
Firestrike indicated its immediate focus is upon the Coronado Trend, which it claimed is traceable for over 1.2 kilometres by approximately 400 metres wide.
The zone has historical mine workings along its strike length and gold in historical rock chip samples collected from the workings from previous explorers in the region.
The company also indicated its intentions to continue developing its Australian projects.
A drilling program at Firestrike’s gold projects at Halls Creek in Western Australia remains scheduled to be undertaken during 2012.
A recently completed infill soil sampling at the company’s project near Ballarat in Victoria has identified a number of follow up gold targets.