New Age completes acquisition of Pilbara gold tenements
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New Age has completed the acquisition of highly-prospective gold tenements in Western Australia’s Pilbara region from Canada’s Monterey Minerals.
The three tenements are located north and about 50km from De Grey Mining’s play-opening Hemi discovery, which has current defined resources totalling 6.87 million ounces of gold.
New Age Exploration’s (ASX:NAE) decision to proceed with the acquisition follows a review of a 37-hole first pass aircore reconnaissance drill program of 12 high-priority Hemi-style targets and ongoing interpretation of detailed aeromagnetic data.
It noted that while the majority of the targets remain untested due to the limitations of the AC drill rig used, the drilling did encounter previously unrecognised mafic-ultramafic lithologies with low level anomalous gold and base metal results being reported from bottom of hole samples across several holes.
Mafic and ultramafic rocks such as these are a key feature of the geological setting at Hemi while notable results from the drilling include 2m at 0.41 grams per tonne (g/t) gold from a depth of 37m and 2m at 0.13% zinc, 0.59/g/t silver and 0.12% lead from 10m.
“We are extremely encouraged by the initial drill results received on this reconnaissance drilling program,” executive director Joshua Wellisch said.
“Our substantial landholding in the Pilbara is now all 100% owned and granted which will underpin an exciting pipeline of exploration opportunity.
“Further assay results are still pending from recent soil and stream sediment geochemical surveys on the southern tenements which we also look forward to reviewing in preparation for the next drilling program to follow in 2021.”
The company has also received confirmation that the remaining two tenements have been granted, taking its total landholding up to 2,400sqkm.
Detailed assessment of all available geophysical data and of the recently acquired multi-element geochemical results is in progress to identify new targets and further refine existing targets.
Results from this work will guide the next phase of New Age’s exploratory drilling, which is planned to commence during the third quarter of 2021 subject to availability of a suitable drill rig.
New Age has completed the acquisition of the tenements by paying an upfront consideration of 7.5 million shares to Monterey.
It will pay a further 30 million shares on delineating a 250,000oz gold resource and another 30 million shares when this is upgraded to 500,000oz.
This article was developed in collaboration with New Age 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.