Great Northern Minerals is on a quest to unearth the next Fosterville gold mine
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Special Report: ~$15m market cap explorer Great Northern Minerals (ASX:GNM) is about to follow up on historic drilling intersections like 12m at 8.4g/t gold at Camel Creek — a large gold system which has never been drilled at depth.
Great Northern Minerals wants to develop a new multi-million ounce gold camp in North Queensland.
Its flagship assets – acquired last year — include the mothballed Golden Cup, Camel Creek and Big Rush gold mines, which produced a combined +160,000oz at an average grade of 1.9g/t in the 90’s.
Great Northern Minerals believes there is a lot more gold where that came from.
These shallow, open cut mines (12m to 30m deep) were all ‘in mineralisation’ when mining stopped.
The gold price was below $US400/oz at the time; today, the gold price is +$US1,800 and marching higher.
For early cashflow, Great Northern is looking at the viability of processing 2 million tonnes of previously mined material on existing heap leach pads. There are also third-party toll treatment facilities at Thalanga, Charters Towers and Mt Garnet — all within potential trucking distance.
But the main game is deeper down. And there’s certainly no shortage of juicy drill targets, with all known mineralisation shows signs of continuation to greater depths.
There’s even strong, early stage geological analogies with the world class Fosterville mine in Victoria, Great Northern says.
Owned by Canada’s Kirkland Lake (ASX:KLA), Fosterville has emerged in the last couple of years as one of the world’s best deposits.
But it was only deeper drilling in 2015 that helped unlock its full potential.
Great Northern says the company has a unique opportunity to systematically assess three large but under explored projects for the first time in decades via deeper drill testing.
The explorer has already established shallow maiden gold resources for Golden Cup (30,000oz) and Big Rush (47,000oz) in December and February, respectively.
Now it’s all about Camel Creek, the largest gold system controlled by Great Northern, where the current drilling program will commence. .
Historic mining saw ~60,000oz pulled out of about 30 small pits over 4km stretch.
Drilling starts later this month to follow up historic drilling intersections included 12m at 8.4g/t gold from surface, and 9m grading 10.4g/t from 6m.
That’s the trifecta: thick, shallow and high grade.
Access to planned drilling sites has been cleared and the maiden RC drilling campaign at the Camel Creek gold project will kick off as planned on 27 July, the company says.
The company has also released a new video, Spotlight on Camel Creek, with new footage of the project and a fly through of the historic drilling and the proposed program.
The video can be found on the GNM Investor Dashboard: http://www.greatnorthernminerals.com.au/index.php/investor_dash/
This story was developed in collaboration with Great Northern Minerals, a Stockhead advertiser at the time of publishing.
This story does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.