Korab Resources climbs 25pc on Pilbara gold buy
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Korab Resources is the latest junior to jump on the Pilbara gold bandwagon, snapping up seven exploration licence applications prospective for — you guessed it — Witwatersrand-style conglomerate gold.
Witwatersrand refers to the Witwatersrand Basin in South Africa — a geological formation that houses the world’s biggest known gold reserves, producing 2 billion ounces or about half of gold ever mined.
Korab (ASX:KOR) had a good day on the bourse yesterday, jumping as much as 43 per cent to an intraday high of 4c before cooling to 3.5c — still up 25 per cent for the day.
The exploration applications cover 210 sq km with three of the licences near Karratha in the West Pilbara and remaining four licences located near Nullagine and Marble Bar in East Pilbara.
Mapping conducted by Geological Survey of Western Australia identified prospective conglomerate horizons and basalt with potential for Witwatersrand-style conglomerate gold over the licences.
“This is an opportunistic acquisition,” Korab’s chairman Andre Karpinski said.
“The Pilbara East and Pilbara West projects are our initial gold interests in the area. This acquisition is based on sound geological examination of government and historical prospecting and exploration data.”
Mr Karpinski added the projects could significantly contribute to Korab.
“They fit-in very well with our other interests at Mt Elephant in WA and at Batchelor in the northern Territory, where Korab is currently undertaking a multistage drilling program for cobalt, gold, silver, copper and other minerals.”
Korab has a market cap of $7.5 million.