The well-funded Stratum Metals (ASX: SXT) has hit the exploration ground running after the company commenced trading on the ASX yesterday.
The company will commence a 17 hole program to around 150 metres in depth at the Gidgee Gold project, which will test in proximity to previously identified gold mineralisation.
Drilling is targeting three prospects identified from the work carried out in the mid-1990’s by Goldfields Exploration Pty Ltd, with the aim of confirming and expanding on these historic indications of gold mineralisation.
Samples from the drilling program will then be sent to ALS Minerals Laboratory in Perth for analysis.
The project is located 640 kilometres northeast of Perth, and is within an established mining region with a long history of gold production.
The project consists of E53/1440 at Gidgee South covering 7,500 metres of strike line on the Tokay Shear, and is 8,000 metres north of Panoramic Resources (ASX: PAN) Gidgee Gold Project, which has a mining camp and process plant with a capacity of 600,000 tonnes per year of ore.
Stratum's plan is to fast track development of gold resources at Gidgee North and most likely strike a deal to utilise a nearby plant for ore processing.
With first drilling program already underway, and a second campaign to start in December - there exists potential for earlier low cost production given a nearby gold treatment plant.