Strata Minerals (ASX:SMX) has acquired 100% of the Penny South Gold Project, next to one of Australia’s highest-grade producing gold mines. Pic via Getty Images
Strata goes for gold with Penny South buy
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- Strata Minerals has completed the 100% acquisition of the Penny South Gold Project, significantly boosting its WA gold exploration portfolio.
- The Penny South Gold Project is in a world class gold district and only about 550m south of one of Australia’s highest grade producing gold mines, Ramelius Resources’ “Penny” Mine
- The Penny West Shear continues into the Penny South Project, with approximately 2.5km of strike contained within Strata’s project
- Historical drilling has encountered various significant anomalous gold intersections
Special Report: Strata Minerals has significantly boosted its exploration portfolio by completing the 100% acquisition of the Penny South Gold Project.
As its name suggests, Penny South is just 550m from one of Australia’s highest grade producing gold mines. The Ramelius Resources (ASX:RMS) owned Penny Mine is estimated to contain 440,000 tonnes at a whopping 22 grams per tonne of gold, equating to 320,000oz.
Those grades make the WA gold mine extraordinarily profitable, even with a trip needed to process the ore at the Mt Magnet mill.
Strata’s (ASX:SMX) Penny South Gold Project takes in a ~2.5km strike extension of the Penny West Shear immediately south of Ramelius’ Penny deposits in southern Youanmi Greenstone Belt,
The major project includes the Penny North deposit of 569,000 tonnes at 16.8g/t (306,000oz), which was discovered by Spectrum Metals (ASX:SPX) then bought by Ramelius for more than $200 million.
The deposit is now being mined and extended, with the Penny West deposit that sits on RMS’ tenement package also having produced 154,000 tonnes at 18g/t gold (89,000oz) in the early 1990s.
Shallow pickings
Importantly for Strata, formerly NickelX, the Penny West Shear continues into Penny South, with approximately 2.5km of strike contained within the junior’s project.
The average historical drill hole depth across Penny South is a mere ~42m, with only 18 holes deeper than 100m and seven holes extending down further than 200m.
Historic drilling at the project has intercepted various significantly anomalous intersections of gold mineralisation, but there has not yet been any diamond drilling.
Managing Director Peter Woods said: “We are extremely pleased to have completed this strategic acquisition of the highly prospective Penny South Gold Project following shareholder approval. Securing this asset which is next door and along strike 550m south to one of the highest-grade producing gold mines in Western Australia is very exciting.
“We are thankful for the support shown by shareholders to approve the acquisition as we continue to transform the company and now look forward to rapidly progressing the project.
“The Company is of the view that the project has not yet been fully tested at depth and we are eager to unlock any potential value.”
Strata is now reviewing all available Penny South Project data and says it’s looking forward to updating the market in the coming weeks.
This article was developed in collaboration with Strata 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.
