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Australian Potash Lake Wells Gold JV partner St Barbara confirms potential for large gold deposit

A diamond core drill program is underway, with two holes of a three-hole program completed and assays expected from March 2021.

Australian Potash Ltd - Australian Potash’s Lake Wells Gold joint venture drilling confirms potential for significant gold deposit
Geochemical analysis of samples have confirmed rocks with close affinities to the Kalgoorlie Terrane basalts, including the Lunon Basalt and the Paringa Basalt

Australian Potash Ltd’s (ASX:APC) earn-in joint venture (EIJV) partner St Barbara Ltd (ASX:SBM) has continued to expand the footprint and tenor of gold mineralisation at the Lake Wells Gold Project, with aircore results confirming the strong potential for the project to host a large gold deposit. 

A diamond core drill program is underway, with two holes of a three-hole program completed and assays expected from March 2021. 

A 19-hole, 3,400-metre reverse circulation (RC) drill program is also underway, with assays expected from March 2021. 

Potential to host significant deposit

Australian Potash’s managing director and chief executive officer Matt Shackleton said: “The high-grade aircore results confirm our belief that the Lake Wells Gold Project has the potential to host a significant gold deposit.

“After three years of methodical analysis, the joint venture is now focusing in on targets where we can test the true potential of the area.

”Like our neighbours to the south, diligent and persistent exploration is paying off.

“With the diamond and RC drilling underway, it is an exciting time for us and this emerging mineral province.

“Nearly 60,000 metres of aircore drilling has been completed and we are extremely pleased with the work conducted and results generated by our valued joint venture partner, St Barbara.

“We look forward to advancing this project together.”

Drill results

Gold focused, regional scale, aircore exploration drilling under the EIJV commenced in April 2019 and a 338-hole, 19,853-metre program was completed in the first half of the 2021 financial year.

To date, 1,119 aircore holes have been completed for a total of 58,614 metres.

The mineralised corridor exceeds nine kilometres in length delineated, with the highest grade assay results returning:

➢ 1-metre at 3.88 g/t gold from 47 metres;

➢ 3 metres at 2.03g/t from 62 metres, including 1-metre at 5.53 g/t from 62 metres and 4 metres at 0.33 g/t from 71 metres; and

➢ 3 metres at 0.99 g/t from 53 metres, including 1-metre at 2.46 g/t from 55 metres and 1-metre at 0.111 g/t from 58 metres.

Current work program

RC drilling to broaden the base of exploration and test anomalies at depth is underway.

Initially, 19 holes have been planned to work toward the targeted zones, with most of the RC drill holes being planned in pairs as ‘scissor’ holes so that information on the geology, style and controls of observed mineralisation can be made.

The scale of the RC program is considered appropriate at this phase of exploration and results will be reported as they come to hand through the quarter, expected from March 2021.

So far, nine RC holes have been completed, with 10 holes remaining.

Close affinities to Kalgoorlie Terrane

Geochemical analysis of samples from the EIJV area have confirmed rocks with close affinities to the Kalgoorlie Terrane basalts, including the Lunon Basalt and the Paringa Basalt.

Adjacent tenement holder, Gold Road Resources Ltd (ASX:GOR) (OTCMKTS:ELKMF) (FRA:E6Q), continues to demonstrate the under-explored nature of the Yamarna Belt and the potential to delineate deposits of merit.

With over 1.1 million ounces of gold in resources delineated along the Yamarna Shear Zone within the Golden Highway and related deposits, and the 3.41 million ounces (reserve) Gruyere Mine now operational, the EIJV Southern Yamarna Anomaly Camp (SYAC) is proving to extend this well-established mineralised corridor over 70 kilometres to the NNW.

Mineralisation at Kundana, within the Kalgoorlie Terrane, is characterised by high-grade gold associated with narrow laminated quartz veins hosted within a shear zone.

Recovered gold and remaining resources at Kundana exceed 8 million ounces, making it one of the more significant gold camps in WA.

Quick facts: Australian Potash Ltd

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