THE BOURSE WHISPERER: MOD Resources (ASX:MOD) has expanded its New Zealand gold footprint by securing the Barrons Flat exploration permit.
The Barrons Flat permit directly adjoins the 1.024 million ounce Sams Creek gold project in the Golden Bay region of the South Island.
Sams Creek has an existing 1.024 million ounce inferred gold resource (based on 18.65 million tonnes at 1.71 grams per tonne using 0.7 grams per tonne cut-off.
The resource is all contained within an 800 metre section of the Sams Creek dyke within the Main Zone prospect.
The Sams Creek dyke has been traced over six kilometres within the Sams Creek permit.
MOD indicted the newly-granted 31.1 square kilometre Barrons Flat permit contains a one kilometre extension of the Sams Creek dyke.
Barrons Flat and Sams Creek permits, including combined 7km strike
length of Sams Creek dyke and magnetic targets. Source: Company
The Barrons Flat permit was granted to MOD’s wholly-owned New Zealand subsidiary, Sams Creek Gold Limited, by New Zealand Petroleum & Minerals for a five-year period.
MOD is earning up to 80 per cent of the Sams Creek permit from OceanaGold Corporation.
The joint venture has benchmarks for MOD to earn staged interests of 40 per cent, 60 per cent and 80 per cent.
MOD recently announced to the ASX that it had secured 40 per cent of the Sams Creek permit under the OceanaGold joint venture and is working towards the 60 per cent ownership benchmark.
The Barrons Flat permit is 100 per cent-owned by MOD.