Six Sigma Metals is now a player in the gold exploration game
Link copied to
Junior explorer Six Sigma Metals (ASX:SI6) is joining the ranks of gold explorers, signing an exclusive option to acquire the Monument gold project (MGP) in Western Australia’s tier one Laverton district from DiscovEx Resources (ASX:DCX)
MGP is adjacent to Dacian Gold’s (ASX:DCN) 2.1-million-ounce (Moz) Mt Morgan project and is close to numerous other multi-million-ounce gold deposits such as Granny Smith and Sunrise Dam.
The project contains the 50,000oz Korong resource that is open along strike and down dip and displays repeating high-grade plunging shoots.
Further work on density and the structural controls on mineralisation is required to increase the current inferred resource to the higher confidence indicated category.
Indicated resources provide sufficient information on geology and grade continuity to support mine planning.
Previous exploration has highlighted multiple gold exploration targets, including at least seven to the north and south of Korong, many of which have historical drill intersections greater than 1 gram per tonne (g/t) gold over several metres.
Six Sigma chairman Patrick Holywell said the acquisition of MGP met the company’s goal of finding a project that complements its Botswana base and battery metals project, while diversifying the company geographically during these challenging times.
“We look forward to commencing our due diligence which will include an initial review of all of the exploration data, geophysical surveys, IP and geochemical work followed by drilling campaigns to extend the existing Korong resource along strike and at depth and for regional target generation,” he added.
“Given the current gold price environment and forecasts, the company is well positioned to benefit from exploration success at MGP.”
During the option period, Six Sigma plans to review all exploration data and interpretations to verify mineralisation models and identify all priority exploration targets.
It will also carry out ground work programs that includes geophysical surveying such as induced polarisation and geochemical sampling.
The company plans to carry out reverse circulation and diamond drilling to extend the Korong resource along strike and at depth with a focus on the high-grade shoots.
Additionally, drill testing will be carried out on regional targets.
Under the agreement, DiscovEx has agreed to grant Six Sigma an exclusive option to acquire 100 per cent of the MGP in return for $25,000 in cash and $50,000 in cash and/or SI6 shares.
This gives Six Sigma 12 months to conduct due diligence and decide on whether it will exercise the option or not.
During this time, it is required to maintain the project tenements in good standing by spending at least $250,000.
Six Sigma is required to pay a further consideration of $50,000 cash and another $50,000 in cash or shares within six months of signing the option agreement and $100,000 in cash and $300,000 in cash and/or shares to exercise the option.