Lefroy Exploration announces start of massive drill drive by JV partner Gold Fields
Given the excitement around Lefroy Exploration’s 100% owned Burns copper-gold it may have slipped your mind the explorer has global giant Gold Fields on hand to drill out its Western Lefroy tenements.
Lefroy Exploration (ASX:LEX) says JV partner Gold Fields, which owns the 350,000ozpa St Ives gold mine on the western margin of Lefroy’s massive Kalgoorlie land holding, is about to sink 46km of aircore holes into its 372km2 expanse that is due to shortly commence.
The program will be completed over a 400m by 400m spacing with approximately 1318 holes designed to uncover geological and geochemical information that will be combined with geophysical data to deliver specific targets for future aircore, reverse circulation and diamond drilling.
Western Lefroy is 50km southeast of Kalgoorlie, the project is part of a $25 million farm-in and joint venture that commenced in June 2018 with Gold Fields, being undertaken over six years to earn a 70% stake in the ground.
The South African gold major has completed the first stage of the earn-in after making a shortfall payment to Lefroy to take a 51% stake in the JV, which required the completion of $10 million worth of exploration activities.
It elected in July this year to press on with stage 2, where it can earn a further 19 per cent interest by putting $15 million into the ground.
If it finds a major gold deposit it is well-placed to add life and may give Lefroy a slice of the action at the four decades old, multi-million ounce St Ives gold camp.
The aircore program, which follows a similar program in 2019 and an 11,000m RC and diamond drill drive across 2020 and 2021, should deliver its first assay results from January.
While Gold Fields’ geologists and drillers wait on land access permission for the program, close-spaced aircore drilling is under way off the lake at Paddy’s Secret.
Located to the north of Lake Lefroy, Paddy’s Secret was the subject of an alluvial gold find in 2013 and 2014 when a number of gold nuggets greater than 10oz (more than $24,000 each at current prices) were discovered in a 400m by 200m area.
The find was made about 4km to the north west of the historic Hogans Find gold workings. by prospecting with metal detectors to a depth of 1m.
Lefroy said the Full Field Aircore (FFAC) drilling would be aimed at reconnaissance, looking for geochemical anomalies and geological structures from the top of the fresh rock beneath the surface and oxidised rock that make up the regolith.
The beauty of the Gold Fields deal is it allows Lefroy to receive the benefits of drilling across its massive tenement holding while placing more focus on its wholly owned targets, particularly Burns and Lucky Strike.
A 20-hole RC drill program is underway at Burns, located near Silver Lake Resources’ Mt Monger gold project, where Lefroy energised the market earlier this year with a big, intrusive porphyry copper-gold find.
It is a unique find for the Kalgoorlie region, more famed for its quartz-hosted gold veins.
The 4500m program is taking three weeks to complete, with assays due for reporting in December. The first two holes have been completed adjacent to a large magnetic anomaly known as Lovejoy.
Stage 2 drill evaluation of the Kenny’s Dream and Lovejoy magnetic anomalies using a lake walking rig will also start in November.
This article was developed in collaboration with Lefroy Exploration, 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.