Hexagon Energy Materials Ltd (ASX:HXG) has completed a large-scale aero magnetics survey over its Halls Creek Project in the East Kimberley, Western Australia, which confirmed a number of high-priority gold targets.
The company is confident that this work enhances the prospectivity of the project, which may result in keen interest from potential joint venture partners.
Attractiveness is boosted by a strong gold price at about A$2,300 per ounce and increased activity in the region.
The 100-metre spaced airborne magnetic and radiometric data survey has generated significant gold targets over the company’s 13 tenements spanning 657 square kilometres.
Six high-priority gold and base metal targets have been confirmed - Lady Helen, Bent Ridge, Granite, Townsite, Arial and Tiger - as well as multiple ‘walk-up’ drill targets.
“Gold and base metal targets”
Hexagon managing director Mike Rosenstreich said: “We are very excited by the potential and advanced targets that have emerged through this work.
“For example, the Bent Ridge target data tying together the rocks, structure and alteration is a big system we consider prospective for gold and copper yet has never been drilled.
“The new aeromag data has reinforced and provided strong geological context to this target and several other high-priority gold and base metal targets.
“This work has added value and highlights our Halls Creek Project as seriously underrated and underexplored.”
Unique JV opportunity
Rosenstreich said: “Hexagon is focusing on the rare earth joint venture and our preference is to seek opportunities to commercialise the value of the Halls Creek Project through either joint venture or spin-out, preserving upside exposure for our shareholders.
“This region is getting increased exploration attention and with a $2,300/ounce gold price this is a unique opportunity for such a prospective, well located and sizeable project.”
The company has noted a renewed exploration interest in the region following success by regional mine operators such as Pantoro Ltd (ASX:PNR) (gold), Panoramic Resources Ltd (ASX:PAN) (nickel) and Northern Minerals Ltd (ASX:NTU) (rare earth), as well as explorers Buxton Resources Limited (ASX:BUX) (nickel-copper-cobalt), Chalice Gold Mines Limited (ASX:CHN) and pegging activity by IGO Ltd (ASX:IGO) subsidiary Independence Newsearch Pty Ltd.
Surface mineralisation samples
Historical rock chip sample grades of surface mineralisation at the drill targets include 56 g/t gold from trench sample and:
- 36.5 g/t gold from Lady Helen
- 26.1 g/t gold from Townsite
- 11.5 g/t gold from Granite
- 1.38 g/t gold from Bent Ridge
- 10.7% copper from Arial
- 1.16% copper and 8.61% lead from Tiger
Next steps for Halls Creek
The attractive historical surface sampling results in combination with the recently completed 1:25,000 scale geological interpretation and detailed geophysics have laid the foundation for a reconnaissance drill program.
This drill program would ideally be preceded by prospect-scale geological mapping to define exact drill hole locations within the areas of interest.
There is also potential to target magmatic-hosted nickel, copper and platinum group elements (PGE) mineralisation within the tenements, which has been ignored by previous explorers.
The project is considered drill ready for the upcoming field season between March and August.