Caspin Resources to earn 80pc of large-scale NSW gold play

• CPN to earn in up to 80% of Weethalle gold project in NSW
• Project could host large-scale intrusive related gold discovery
• Company planning initial 1200m RC drilling program in coming weeks

Special Report: Caspin Resources has signed an option agreement to earn into 80% of the Weethalle gold project in NSW, just 30kms from its Bygoo tin project.

Weethalle contains many historical gold workings, dating back to the 1930s, the most significant production being from the Euratha mine. 

Despite being a short distance from significant historical gold production at West Wyalong and very large gold endowment at the Lake Cowal gold mine, the project has not received any meaningful exploration for decades, until recent soil sampling and IP surveying.

For just $50,000 and $1m CPN shares, Caspin Resources (ASX:CPN) will gain exposure to potentially significant gold exploration success in the short term, with the 310km2 project comprising a compelling large-scale intrusive related gold (IRG) target.

IRG systems have yielded some of the largest gold discoveries over the past 20-30 years like the ~10Moz Fort Knox project in the USA, the ~5Moz Kidston project in Qld, and the recent 8Moz Valley discovery in the Yukon.

With historical mining reporting grades up to 5oz/t gold plus silver, rock chips up to 64.5 g/t gold and a newly defined, undrilled, 2,000m-long IP geophysical target, the company says the project is a natural fit, complementing its expertise in intrusive mineralised systems, discovery-stage exploration and operational capability in the region.

Listen: Greg Miles chats with Barry FitzGerald

In a previous instlament of the Explorers Podcast, host Barry FitzGerald is joined by Caspin Resources managing director Greg Miles after the New South Wales tin explorer unveiled a maiden resource at its Bygoo project.

Compelling greenfields gold play

Caspin is confident it could be on the doorstep of a large-scale opportunity, and is preparing to test the coincident IP and geochemical anomalies as soon as possible, with the first round of drilling planned to comprise a 1200m RC program.  

“We are delighted to have secured an option to earn into the Weethalle gold project, which in our opinion, is one of the most exciting greenfield gold projects in the country,” managing director Greg Miles said.

“There is compelling evidence across multiple data sets that Weethalle could host a large intrusive-related gold deposit. 

“The prize is big. This type of system hosts some of the world’s largest gold deposits.”

Miles said that whilst the company’s priority focus remains on Bygoo, where a maiden, high-grade tin resource and exploration target has been established, the addition of the Weethalle project provides shareholders with immediate exposure to record-high gold prices. 

“The company will be drilling the compelling Weethalle gold targets in the coming weeks, followed soon after by resource expansion drilling at the Kelpie tin deposit,” he said.

Interestingly, there are several alluvial tin occurrences surrounding the Weethalle Granite and the company will also review the project for potential tin mineralisation.

This article was developed in collaboration with Caspin Resources, a Stockhead advertiser at the time of publishing. 

This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.