Alice Queen Ltd (ASX:AQX) has started diamond drilling ahead of schedule at the Horn Island Gold Project Joint Venture (JV) with St Barbara Limited (ASX:SBM) in Torres Strait, Far North Queensland.
The maiden diamond core drill program consists of up to 14 holes for 4,500 metres.
First diamond core program
Alice Queen managing director Andrew Buxton said: “We are very excited to have embarked upon our first diamond core drilling program with our Horn Island joint venture partner, St Barbara Limited.
“The IP anomalies that we are targeting with the drilling are of a significant scale so we are all very optimistic about the potential of this program to expand on the already very exciting Horn Island story."
RC infill program
Meantime, in the area excluded from the JV, phase one of the company’s Horn Island resource reverse circulation (RC) infill drill program of 33 holes for 4,100 metres is expected to start shortly with equipment being mobilised.
This comes after the company completed a resource extension drill program of six holes for 1,440 metres within the excluded areas with all core processed and dispatched for assay.
Horn Island St Barbara Joint Venture and excluded areas illustration.
Horn Island JV
On June 5, 2019, Alice Queen entered a JV with Australian listed mid-tier gold producer, St Barbara Limited.
The key terms of the JV are:
- SBM to spend $4 million over three years to earn 70% of areas outside of the excluded zones – which are the existing inferred resource of about 0.5 million ounces gold and the historic mine infrastructure;
- SBM has an option to purchase all or part of the excluded zones at ‘fair value’ after spending the $4 million and electing to move to 70%;
- AQX, via its subsidiary, Kauraru Gold Pty Ltd, has the right to continue with its 30% share of further expenditure to maintain its equity position through to production.