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Montezuma Mining Company Ltd expands Western Australia gold focus

Published: 10:00 20 Jul 2016 AEST

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Montezuma Mining Company Ltd (ASX:MZM) has added the wholly owned Holleton Gold Project, located 400 kilometres east of Perth, to its gold portfolio.

The project contains multiple soil anomalies providing a pipeline of priority underexplored targets for Montezuma.

The project hosts the Brahma gold prospect, a 2.5 kilometre long gold soil anomaly, which has been historically tested with shallow aircore drilling confirming target potential.

Only three deeper holes over 50 metres deep have been drilled, all of which intersected broad mineralised intervals with grades of up to 7.6 g/t gold.

Montezuma plans to commence exploration at Holleton once the exploration licence application has been granted.


Holleton Gold Project

The Holleton exploration licence covers 115 square kilometres of the Holleton Greenstone Belt located 400 kilometres east of Perth.

The area was previously explored by Independence Group NL (ASX:IGO) who identified numerous gold anomalies through soil sampling.

Follow-up drilling across these anomalies was typically first-pass in nature with many intersections left open.

Anomalies identified include Brahma, Cochin, Barnevelder and Jersey Giant.

The best of the historical results is at Brahma where a 2.5 kilometre long, >50ppb gold in soil anomaly was discovered and drilled.

The best intersections at Brahma include 73 metres at 0.3 g/t gold including 4 metres at 1.6 g/t gold and 1 metre at 7.6 g/t gold.

Numerous other intersection greater than 100ppb gold remain open along the length of the soil anomaly.


Analysis


The addition of this gold project to the company’s exploration portfolio in Western Australia ensures the company will continue to be leveraged to exploration success from multiple projects.

Montezuma has the resources to finance exploration programs at projects such as Holleton with the company last reporting $7.7 million in cash and investments.

News flow is expected regarding the follow-up aircore drilling program which started in late June at the Yarmarna Gold Project in Western Australia.

All prospects at Yamarna lie along strike and within 20 kilometres of the 6.2 million ounce Gruyere gold discovery by Gold Road Resources Ltd (ASX:GOR).

The Yamarna Greenstone Belt is an under explored province, which is geologically similar to the Kalgoorlie Gold Belt.

The company's share register is tightly held with the top 20 owning 71%.

 

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