Special Report: Hexagon Energy Materials (ASX:HXG) will kick off a big exploration program at the underexplored Halls Creek gold project, designed to dial in on some of the numerous high-grade targets identified earlier this year.
Hexagon’s main game is to develop a downstream rare earths refining business centred around a disruptive rare earths processing tech, called RapidSX. But for investors, the company’s legacy Halls Creek project in WA represents plenty of upside.
The East Kimberley region is getting increasing attention from explorers and miners.
This includes companies like Pantoro (ASX:PNR), Northern Minerals (ASX:NTU), Buxton Resources (ASX:BUX), Chalice Gold Mines, (ASX:CHN) and Independence Group (ASX:IGO).
Most recently, Meteoric Resources (ASX:MEI) acquired an advanced project called Palm Springs near Halls Creek, where historic drilling hit specular intercepts, like 19m at 8.8 grams per tonne (g/t), 56m from surface.
Neighbouring Palm Springs to the northwest is Hexagon Energy Materials’ (ASX:HXG) underexplored 657sqkm Halls Creek gold-base metals project (HCP), which is littered with mineralised rock outcrops and historic workings.
Highlights include the Lady Helen prospect where a small historical drilling program returned a best result of 4m at 22.6g/t gold and 17.3g/t silver from surface. This was not followed up.
“Our prospects were last mined in the very early 1900s,” Hexagon’s Mike Rosensteich told Stockhead.
“And it’s fair to say there has been no meaningful, coherent work on the project for over 30 years.”
A methodical exploration approach
Hexagon’s plan is to put these gold occurrences into an overall geological context; something which has never been done before.
“Previous owners didn’t have the detailed data or technology we have today, or they only had a portion of the tenement package,” Rosensteich says.
“If we look at the tenements as one package, we can understand and rank the targets on a really solid geological and geophysical basis.”
In September 2019, the Company flew a detailed aeromagnetic survey over the entire tenement area to integrate the various gold and base metals targets onto one consistent data set. In February, this data, , combined with re-interpreted geology and geochemical anomalies, resulted in the identification of numerous gold and base metal ‘walk-up’ drill targets.
Now, a substantial exploration program has kicked off, beginning with geochemical/soil sampling, geophysics, and geological mapping — culminating in a maiden drilling program planned forSeptember/October.
Hexagon has partnered with proven mine finder, geologist Cherie Leeden, to compile old data and integrate it with new data to find the best targets for drilling.
“That’s what the project needs – mine finders — which is Cherie and her team,” Rosensteich says.
A highly experienced structural geologist from SRK Consulting will also undertake a mapping program.
This detailed mapping is important as these high-grade gold deposits often have a very strong ‘structural’ control to them.
“High quality geological mapping skills really stitches together that airborne geophysics with the geology on the ground,” Rosensteich says.
Securing a strategic partner for the rare earths business remains Hexagon’s main game.
But Rosensteich says it’s also important that Hexagon progresses this highly prospective gold project, one that has been in the portfolio for a long time.
“The area is getting increasing attention,” he says.
“And I think people are recognising more and more that with the gold price surging, there’s no place to explore like home.”