Cashed up Minotaur Exploration Ltd (ASX:MEP) will look to define a gold resource and test extensive historic gold intercepts from a drill program at the Chameleon gold deposit near Kalgoorlie in Western Australia.
Chameleon was drilled by WMC, Forrestania Gold, Scotia Nickel and Aphrodite Gold (ASX:AQQ) there is a sense the geology and controls on mineralisation may not have been understood fully.
Minotaur will seek to change that with a 12 hole reverse circulation drilling program.
Minotaur has re-compiled all available historic drill information and produced a wireframe of the mineralised envelope.
This shows that significant gaps in historical drilling exist where gold could occur given the coherent nature of the envelope.
Minotaur’s 1300 metre program aims to increase data coverage and extend the known strike of gold mineralisation.
Meanwhile, drilling is underway at the Eloise JV by Minotaur’s farm-in partner OZ Minerals Ltd (ASX:OZL), over Minotaur tenements south-east of Cloncurry, Queensland.
OZ Minerals will sole fund an initial $1.5 million for exploration, with the option to earn a 70% beneficial interest in the tenements by investing a total of $10 million over 6 years.
Minotaur’s share price has increased by about 43% during the last three months.
The company held $4.3 million in cash as at 31 March 2016 and listed investments of $0.9 million.
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