Twenty Seven Co Ltd (ASX:TSC) has revealed several areas worthy of follow-up exploration during its due diligence work on potential new projects in WA's Goldfields with the Mt Dimer Gold Project proving particularly encouraging.
The company is progressing with due diligence following the signing of a Binding Term Sheet which provides an exclusive 60-day option period to acquire Oz Gold Group Pty Ltd.
Oz Gold holds the rights over Mt Dimer and the newly named Yarbu Gold Project in the WA Goldfields as well as Trident Gold-Copper Project in NSW - all of which are in well-established mining districts, close to critical supportive infrastructure and readily apparent routes to key ports.
TSC has identified several areas for follow-up exploration at Mt Dimer and Yarbu.
TSC chief executive offier Ian Warland said: “TSC’s geology team have made excellent progress with due diligence, especially on the Mt Dimer mining lease.
“Notably, a closer review of historic drilling indicated the potential for a south plunging gold shoot under the historic pit, which provides an area for priority follow-up drill-testing.
“Furthermore, previous exploration at the newly named Yarbu project, which is 80 kilometres to the northwest of Mt Dimer, indicates anomalous gold in soils and RAB drilling associated with a major regional structure.
“Clearly, the initial due diligence on Mt Dimer and Yarbu gold projects is pointing towards enhanced exploration potential.
“Moving forward, we look forward to updating shareholders as due diligence nears its conclusion and results from the Rover Project drilling campaign materialise.”
Gold potential at Mt Dimer
A closer review of historic drill results from the Mt Dimer mining lease, around 200 kilometres north of Southern Cross, has verified the existence of several significant gold intercepts outside of the historic open pit, including:
- 19 metres at 3.38 g/t from 76 metres;
- 13 metres at 4.75 g/t from 53 metres;
- 11 metres at 5.29 g/t from 81 metres;
- 8 metres at 4.71 g/t from 72 metres;
- 7 metres at 3.97 g/t from 84 metres;
- 6 metres at 13.32 g/t from 99 metres;
- 5 metres at 10.64 g/t from 78 metres; and
- 5 metres at 15.4 g/t from 100 metres.
New drilling is required to confirm the old drill intercepts and whether there is potential to extend the mineralisation at depth.
Mt Dimer, Yarbu and Rover Projects in WA.
In 2017, an RC drilling campaign of around 800 metres by Cadre Resources Pty Ltd delivered encouraging results that illustrated lode continuity at depth, with the key intercepts:
- 4 metres at 4.91 g/t from 150 metres; and
- 3 metres at 2.25 g/t from 166 metres.
A review of the 2017 drilling indicates the drill holes may have missed the down plunge extension of mineralisation to the south and that follow-up drilling should be focused on the interpreted down plunge direction.
The Yarbu Project
The Yarbu Project is adjacent to Ramelius Resources’ (ASX:RMS) Marda Gold Project which contains a JORC 2012-compliant resource of 280,000 ounces gold in nine separate deposits.
Yarbu has known historical gold anomalies that provide strong areas of focus along the major regional Clampton Fault zone.
TSC’s geology team are systematically progressing the due diligence and, based on work undertaken to date, expect to complete the task and provide a recommendation to the board shortly.
Next steps for the company include:
- Completion of due diligence investigations for the Mt Dimer and Trident Gold-Copper Projects and, subject to a successful recommendation and to other relevant conditions being satisfied, exercise of the company’s option to acquire OzGold; and
- Ongoing targeted drilling campaign at the Rover Project in WA.