Montezuma Mining Company (ASX:MZM) is poised to start maiden gold drilling at its wholly-owned Yamarna Project in Western Australia after receiving Aboriginal Heritage clearance.
The Yamarna Belt is geologically similar to the prolific Kalgoorlie Gold Belt and hosts Gold Road Resources’ (ASX:GOR) 5.6 million ounce Gruyere discovery.
Montezuma’s ground is adjacent to and located along strike from Gruyere. It contains multiple undrilled historical geochemical anomalies.
Historic soil sampling by Western Mining Corporation identified a soil anomaly cover about 20 square kilometres as well as two sub parallel linear anomalies of over 5 kilometres in strike length.
Regional gravity data has also mapped a regional scale geological corridor of approximately 20 kilometres in strike while geochemical anomalies are coincident with favourable structural positions.
Phase one aircore drilling of between 8,000 metres and 10,000 metres will begin once the rig and field crews are mobilised to test multiple geochemical and structural targets.
Targets include three priority, regional scale targets over geologically and structurally favourable positions.
These were identified from recent soil sampling that returned peak gold value of up to 20.8ppb gold against a background of about 1ppb gold.
The largest anomaly outlines a target zone over 1 kilometre in strike, coincident with an interpreted shear zone.
Justin Brown, executive director, commented:
“The team are excited that all necessary clearances and approvals are now in place to allow the maiden drilling program to proceed and we are looking forward to releasing the first ever drilling results from this exciting project.”
Recent surface geochemical results highlighted three priority regional scale targets to be tested by the aircore drilling.
Priority Anomaly 1 (1.3 kilometres by 350 metres at >10ppb gold) is associated with a granite/greenstone contact marginal to a regional gravity high.
The geochemical sampling returned a peak value returned of 20.8ppb gold.
Priority Anomaly 2 (over 1 kilometre strike at >5ppb gold) is associated with an interpreted embayment in the granite near the interpreted granite/greenstone contact zone.
This returned a peak value of 13.5ppb gold.
The last Priority Anomaly (over 1.5 kilometres strike at >5ppb gold) is associated with a potential shear zone along the granite/greenstone contact.
The Yamarna Project is located within the Yamarna Greenstone Belt, which is geologically similar to the prolific Kalgoorlie Gold Belt and has been the focus of limited exploration.
Work on the Yamarna Belt, which is over 200 kilometres in strike length and historically unexplored, has so far has yielded in excess of 6 million ounces of gold.
This compares with the 160Moz gold endowment at the Kalgoorlie Belt and 62Moz at Laverton-Leonora, highlighting the potential for further discoveries.
The regionally significant soil anomaly identified from historic soil sampling by Western Mining is coincident with granite/greenstone contact.
Regional gravity data has highlighted a large gravity high of approximately 20 kilometres in strike length.
Geochemical anomalies positioned on the edge of the anomaly shows similarities to the Gruyere discovery.
These are also coincident with an embayment in an interpreted granite body and a regional scale shear zone.
Further assay results are pending from the company’s recent soil sampling program.
Montezuma Mining is on the cusp of starting exploration in the under-explored but highly prospective Yamarna gold province.
The prizes are rich; just take a line through Gold Road's 5.6Moz growing gold discovery, north of Montezuma's ground.
So the stage is close to being set with well funded Montezuma (cash of circa $6.6M at June Quarter end) with these approvals in hand.
There is tantalising upside if results are good, given MZM’s EV of $6.7 million compared to Gold Road’s EV of $204 million.
Montezuma offers investors a low cost entry point into a highly prospective gold project ahead of the company’s exploration program over the next two quarters to test its potential.
Montezuma also has an experienced board including chairman Seamus Cornelius, who also chairs Danakali Limited (ASX:DNK), Buxton Resources (ASX:BUX) and Duketon Mining(ASX:DKM), and executive director Justin Brown.
In addition to Yamarna, the company holds the Butcherbird Manganese and Copper Project, the Green Dam nickel-copper-pge project and the Woodie Woodie West Project.
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