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NSM’s Caledonia looks like it could be a repeat of the multi-million-ounce Stawell gold mine
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North Stawell Minerals has reported more significant gold intersections from drilling at the Caledonia prospect that provides further evidence the company could be sitting on a repeat of the same structure that underpins the nearby 5Moz Stawell gold mine.
North Stawell Minerals (ASX:NSM) has successfully doubled the Caledonia prospect gold trend in the prolific Stawell region, just 570m south of past mining that delivered grades of over 15 grams per tonne (g/t) gold.
Aircore drilling has extended the gold trend to 620m with multiple significant intercepts of over 1g/t gold returned on all sections drill tested. Top hits include 6m at 1.40g/t from 63m, 3m at 1.22g/t from 48m and 3m at 1.32g/t from 66m.
“What we’re seeing at Caledonia looks to be awfully like a repeat of the Magdala dome style basalt units that form the core to Stawell-type mineralisation,” CEO Russell Krause told Stockhead.
The Stawell gold mine was once Victoria’s premier gold producer, before Fosterville, just east of Bendigo, came into production.
NSM hasn’t hit the Magdala dome style basalt units yet, but when it does that is expected to unlock the higher grades and multi-million-ounce potential.
Caledonia sits within the prospective Darlington – Germania structural trend, which runs for 10km and includes four historic mines and three high-potential prospects – Darlington, Caledonia, and Wimmera Park.
This means plenty more exploration blue sky with the Caledonia trend remaining open along strike and at depth.
Victoria is well known as one of Australia’s most fertile gold producing regions and the Stawell belt in Western Victoria, together with Bendigo and Ballarat, form Victoria’s ‘Golden Triangle’. Of the 75Moz of gold to come out of the Golden Triangle, 6Moz has come from Stawell.
“The results on three lines, to the south of previously reported results continue to intersect significant (+1g/t) gold grades extending strike from 250 to 620m – confirming an exciting exploration target with substantial potential,” Krause said.
“Historic mining 570m south has produced at grades over 15g/t gold and previously reported intercepts at Caledonia demonstrate higher grades occur in the system, increasing potential for higher grade shoots.”
Earlier results demonstrated the high-grade potential of Caledonia, with notable intercepts like 1m at 12.15g/t from 36m returned during drilling.
To date, a single line of drillholes tests depth continuity (to 100m), intersecting subvertical mineralisation with a strong gold and arsenic signature at depths of 35m and 90m (open at depth).
The results significantly improve NSM’s understanding of the system, advancing the target from generative to spatially constrained in two drill programs totalling 30 holes for 2,862m.
Caledonia is NSM’s first, and successfully, completed phase-two aircore program, with the goal to efficiently establish strike, dip, and extents of mineralisation.
Future drilling in the area will also focus on depth continuity, plunge and controls on grade and thickness to rapidly mature the prospect.
Large pipeline of targets
NSM has its foot on 504sq.km of ground that includes the same structures and geology that form the foundation of the Stawell gold mine, immediately to the south of the company’s ground.
NSM’s aggressive exploration has successfully identified over 60 potential targets that have shown sufficient strike and potential to host extensive, shallow mineralisation similar to the Stawell mine.
“The results at Caledonia (and their positive impact of the dimensions of the prospect) are an important addition to NSM’s maturing mineralisation pipeline,” Krause said.
“Caledonia joins several other prospects with proven significant (+1g/t) gold intercepts – Darlington, Lubeck Tip, Foresaken and Challenger – and adds optionality for future work as well as emphatically demonstrating the exploration strategy and targeting methodology is effective and efficient.
The prospects, in conjunction with the 55,000oz inferred mineral resource at Wildwood, present a substantially more robust exploration pipeline with multiple, compelling Stawell-like targets consolidated in the last six months.”
Krause added that a deep pipeline of additional generative and early stage exploration targets, uncovered during phase-one reconnaissance drilling, highlighted the enormous exploration potential of the Stawell Zone under a thin blanket of Murray Basin cover.
This article was developed in collaboration with North Stawell Minerals, 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.
