logo-loader
viewHexagon Energy Materials Ltd

Hexagon Energy Materials shares rise ahead of gold drilling at Halls Creek Project

Hexagon’s plan is to follow-up on several high-grade gold targets identified from target-generation work undertaken earlier this year.

Hexagon Energy Materials Ltd - Hexagon Energy Materials shares rise ahead of gold drilling at Halls Creek Project
The company’s shares were last trading at 6 cents

Hexagon Energy Materials Ltd (ASX:HXG) shares are trading about 15% higher intra-day after identifying an opportunity to add significant value by testing several high-grade gold targets at its Halls Creek Project in the Kimberley region of WA.

The program will commence in early July and is designed to follow-up on several outstanding high-grade gold targets identified from target-generation work undertaken by Hexagon earlier in the year.

Gold targets to be followed up, include:

  • Lady Helen - historical drill intercept of 4 metres at 22.6 g/t gold and 17.3 g/t silver from surface and a rock chip result of 36 g/t gold;
  • Townsite Prospect - with surface rock chip sample result of 26 g/t gold;
  • Granite Prospect with rock chip result of 11.5 g/t gold; and
  • Bent Ridge Prospect with 1.3 g/t gold from rock chip sample.

Halls Creek Gold Project: schematic geology and target locations

The targeting has been designed to zone-in on geological interpretations refined by the detailed aeromagnetic survey flown by Hexagon late in 2019 to provide high-resolution geological context on these gold targets as well as numerous other targets prospective for gold and polymetallic base metal mineralisation.

A sequential program is planned to comprise:

1. Geochemical - sampling to identify new targets and better define existing targets along the Lady Helen to Bent Ridge gold trend. (mobilise late June, July).

2. Geophysics - a review of historical data and, where relevant, apply new processing techniques or geological models to identify untested targets. (June, July]

3. Geological Mapping - at a detailed prospect-scale along the Lady Helen-Bent Ridge trend and at a broader regional scale to identify structural controls on lode-gold mineralisation, the main regional structural and lithological units as reconciled to the aeromagnetic interpretation and mapping of other anomalies identified from the aeromagnetic and historical data. (July, August)

4. Drilling - a reverse-circulation and diamond core program to test the gold targets defined above. (August-September - subject to approvals and availability of drilling contractors)

Adding significant value in the short term

Hexagon managing director Mike Rosenstreich said: "We are all emerging from the COVID-19 restrictions and it is pleasing and encouraging that several parties are looking to re-engage on our funding discussions.

“There is uncertainty as to how Hexagon gets involved and contributes to the planned offshore REE (rare earth element) business when our borders are closed and indeed, whether we plan to or will be able to exercise the RapidSX Option.

“These issues are weighing on shareholder's minds, though we remain confident we can address them.

“We are working as quickly as we can in co-operation with IMC to undertake our financial modelling and to finalise a strategic REE funding transaction.

“That is our main game, but we also have an opportunity to add significant value in the short term by testing several high-grade gold targets at our Halls Creek Project and this work is due to start in a few weeks.”

Quick facts: Hexagon Energy Materials Ltd

Price: 0.066 AUD

ASX:HXG
Market: ASX
Market Cap: $19.3 m
Follow

Add related topics to MyProactive

Create your account: sign up and get ahead on news and events

NO INVESTMENT ADVICE

The Company is a publisher. You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is...

In exchange for publishing services rendered by the Company on behalf of Hexagon Energy Materials Ltd named herein, including the promotion by the Company of Hexagon Energy Materials Ltd in any Content on the Site,...

FOR OUR FULL DISCLAIMER CLICK HERE

Watch

Hexagon Energy Materials: Takeover of partner is 'strong signal of support'...

Hexagon Energy Materials Limited (ASX:HXG) managing director Mike Rosenstreich discusses with Proactive's Andrew Scott the takeover of its partner IMC and how they're set to benefit from the option to acquire 49% of their RapidSX technology. RapidSX is a unique accelerated form of solvent...

on 1/5/20

3 min read