Bardoc Gold Ltd (ASX:BDC) has further strengthened its gold resource and exploration growth pipeline in WA after executing an agreement to acquire the strategic Mayday and North Kanowna Star gold projects immediately east of its flagship 2.6 million gold ounces Bardoc Gold Project.
The acquisition includes three Mining Licences, four Prospecting Licenses and one Miscellaneous Licence covering a total area of 20 square kilometres in the North Kalgoorlie district.
The Mayday North Project is within easy trucking distance about 50 kilometres and the North Kanowna Star Project about 22 kilometres to the east of the Bardoc Project.
The project areas include a combined JORC compliant indicated and inferred resource totalling 111,600 gold ounces, representing an important and low-cost strategic addition to Bardoc’s existing 2.6 million gold ounces resource base in the district.
Mayday North Gold Deposit March 2015 resource estimate (0.5 g/t gold cut-off)
The tenements have had minimal modern exploration and offer numerous exploration opportunities and walk-up drill targets including immediate extensions of the currently defined JORC resources.
North Kanowna Star Gold Deposit March 2015 resource estimate (0.5g/t gold cut-off)
The acquisition is consistent with Bardoc Gold’s strategy of establishing a sizeable gold resource base in the Kalgoorlie district though a combination of strategic exploration and M&A activity.
Bardoc chief executive officer Robert Ryan said the company’s growth strategy in the Kalgoorlie district was rapidly gaining momentum with the acquisition of the Mayday North and North Kanowna Star deposits adding quality ounces and exploration upside to the Bardoc Gold Project.
Record gold price opening up fresh opportunities
Ryan added: “This acquisition is consistent with our corporate strategy, which is to rapidly build a sizeable and high-quality gold resource in the Kalgoorlie region, consolidate gold deposits located within economic haulage distance of a potential centrally located processing facility at the Bardoc Project and expand our strategic exploration footprint and growth pipeline.
“This strategy is currently enjoying the tailwind of a record Australian Dollar gold price which is opening up fresh opportunities across the entire Kalgoorlie district – including overlooked and forgotten deposits that now present as outstanding resource development and exploration opportunities.
Exploration program planned
“The North Kanowna Star Project adds a satellite mining project with a past production history to supplement our proposed cornerstone operations at Aphrodite, Zoroastrian and Excelsior. The project has the potential to expand with no significant drilling below 50m and the tenement package also includes a number of walk-up exploration targets.
“The Mayday North Project is an exciting opportunity with significant scope to extend the current Resource through exploration. Only one drill hole has targeted the resource area in the past 20 years, with the ore zone remaining open both along strike and down-plunge. A high-grade open pit was mined prior to 2000 when the gold price was under $500 per ounce, with the remnant resource amenable to both open pit and underground mining.
“Our geology team will immediately develop an exploration program to extend and upgrade the known mineralisation at both projects.”