THE BOURSE WHISPERER: Orion Gold (ASX: ORN) has lodged an application for exploration tenure with the Queensland Department of Environment and Resource Management.
The application is located north-west of Rockhampton and covers 80 sub-blocks over approximately 254 square kilometres.
Regional location of application. Source: Company announcement
It is situated along strike to the north of a tenement containing the Mount Mackenzie copper-gold project of Metalbank (ASX: MBK).
Orion said this project is known to include both low sulfidation and high sulfidation epithermal style gold mineralisation.
Orion considers the area of application and the district in general to be prospective for epithermal gold deposits.
The company indicated the prospects to have been interpreted as low sulfidation epithermal style systems represent probable gold exploration targets; on the basis they are associated with a large, magmatic hydrothermal system (Mt Mackenzie).
“The hydrothermal system is located within a geological and structural setting which is very similar to other significant epithermal gold systems in Queensland such as Cracow and Mt Carlton and is of the same broad age (Permo-Carboniferous) as many other intrusion-related gold systems in Queensland,” Orion Gold said in its ASX announcement.
“Geological and geochemical characteristics suggest that the prospect may be shallowly eroded, implying potential for higher gold grades at depth.”
Once the application has been granted, and associated regulatory approvals have been received, Orion said it will seek to define and drill test targets at the earliest opportunity.
Orion also provided an update on the progress it is making defining targets for drilling and access approvals within its Walhalla Goldfield tenements in Victoria.
The company completed a regional structural reinterpretation of the Cohen’s Trend late last year, which highlighted the prospectivity of a relatively restricted strip of stratigraphy trending for over 35 kilometres north of Walhalla through the Orion tenements.
Ongoing discussions with the Victorian Department of Primary Industries have opened the way for the company to seek reductions in the size of some areas it has now interpreted to be of lower prospectivity.
Orion considers this will allow it to concentrate on high-priority trends and prospects and more effectively manage its tenements and program.
A re-evaluation of the Tubal Cain gold resource has commenced based upon re-logging available diamond core to more fully evaluate the exploration and resource potential.
In addition to the planned drilling at Walhalla, Orion also has a number of new project areas under review for possible acquisition, ranging from exploration projects in prospective terrains (including Queensland) to more advanced projects.
These new project areas, if acquired, will provide medium to long-term development opportunities in addition to the company’s current exposure and commitment to the Walhalla – Woods Point Gold Field.