Strategic Elements (ASX: SOR) invests into Australian companies across the rare earths and rare metals mining, processing and materials development sectors.
Strategic Elements is Australia’s only listed Pooled Development Fund actively funding and developing projects in the materials sector.
Strategic Elements (ASX: SOR) is on the hunt for more gold along strike from the prolific Reefton goldfield in New Zealand with the extension of its Reefton South Project.
Indicating the potential of the area, the Reefton goldfield historically produced around 2.1 million ounces of gold.
The area has attracted mining heavyweights like Oceana Gold (TSX: OGC), which is developing the 1.2 million gold ounce Globe Progress open pit and is working to reopen further old mines, including the Blackwater mine.
Strategic has extended its Reefton South application to cover an extensive area of ground south of the Reefton goldfield.
The northern permit boundary is about 5 kilometres south of the historic Blackwater Mine at Waiuta, which was the biggest mine in the Reefton goldfield producing 733,000 ounces from the Birthday Reef from 1905 up to 1951.
A layer of gravel and glacial till covers the prospective gold bearing rocks at Reefton South preventing past miners from exploring beneath the cover.
Importantly, this has left the project area completely unexplored for hard rock gold, despite it being only a few kilometres along strike from the southern end of the Reefton goldfield.
Strategic Elements has the upper hand here with this year marking the very first release of the New Zealand Government’s airborne geophysics data over the Reefton goldfield and the company’s Reefton South project area.
Charles Murphy, managing director, said modern exploration techniques enable exploration of rocks beneath cover and there is a global trend in new gold discoveries being made through these methods.
“It is an exciting thought to consider, that the Reefton South project is a few kilometres along strike from a significant producing goldfield, and modern ‘under cover’ exploration approaches mean its prospectivity is completely wide open.
“We are building a strategic position (over 1,200 square kilometres) across a number of rare (tungsten, rare earths, tin) and precious (gold) metal projects on the South Island of New Zealand.
“In a country such as New Zealand, we believe that new data, combined with a strategic ground holding underpinned by fundamental geological concepts, is the way forward to make new discoveries.”
Reefton is a high grade goldfield. Indicative of this is Oceana Gold’s new drill intercepts at Big River of 3 metres at 18.5 grams per tonne (g/t) and at Blackwater of 1 metre at 23.3g/t.
Further proof is in historical mining, which produced a typical average grade of around 15g/t gold, ranging up to 2 ounces.
Proactive Investors is a market leader in the investment news space, providing ASX “Small and Mid-cap” company news, research reports, StockTube videos and One2One Investor Forums.