An ancient gold-bearing river at Red Dale could be concealing a major deposit deeper down, LEX says
Link copied to
Special Report: The goal of Lefroy’s new drill campaign at the Red Dale prospect is two-fold – expand the existing ~20,000oz resource while dialling in on the source of this gold in the deeper bedrock.
Red Dale is located within Lefroy’s (ASX:LEX) wholly owned Eastern Lefroy tenement package, part of the greater Lefroy Gold Project (LGP) 50km southeast of Kalgoorlie.
It’s a great spot, nestled up against Silver Lake Resources’ (ASX:SLR) Randalls processing operation and abandoned 224,000oz Salt Creek open pit.
In 2007, gold was identified at Red Dale by Integra Mines — since acquired by Silver Lake – the same year it discovered the Salt Creek deposit, 2.5km to the south.
Drilling between 2007 and 2010 identified a sizeable regolith-hosted gold anomaly about 1.6km long and up to 1km wide.
Regolith is the ‘loose’ oxide dirt which covers the solid fresh bedrock deeper down.
In 2017, Lefroy intersected gold in an ancient river system called a paleochannel within the broader regolith profile. Significant intersections included 9m at 1.69 grams per tonne (g/t) gold within a gravel horizon at the base of the palaeochannel, 41m from surface.
In 2018, the company announced a 19,600oz maiden resource estimate for the gold bearing river gravel at Red Dale.
A new drilling program is underway to extend that resource.
The program will involve ~25 vertical holes for 1500m on nine, 40m spaced drill sections to evaluate 360m of the palaeochannel.
But Lefroy also believes this gold-bearing material hasn’t travelled far – which means a larger bedrock gold source could be somewhere close by.
To dial in on this source, a single angled hole will follow up a prior bedrock gold intersection below the palaeochannel.
The program is expected to be completed this month, Lefroy says, with results anticipated in April.