Alkane Resources Ltd (ASX:ALK) has snapped up two new tenement packages in New South Wales, both considered to have potential to be world-class gold-copper porphyry deposits.
The Department of Regional NSW, Mining, Exploration and Geoscience (MEG) has approved the transfer of titles of the two exploration tenement packages from Sandfire Resources Ltd to Alkane.
Strategic acquisition to increase footprint
This is the endpoint of an acquisition agreement announced on March 9 and as per that deal, 2,781,438 Alkane shares have been issued to Sandfire.
This strategic acquisition means Alkane now owns tenure covering the entire 15-kilometre northwest trending structural corridor hosting the Boda District group of deposits within the Northern Molong Porphyry Project (NMPP).
The other tenement package covers the Southern Junee Porphyry Project (SJPP), a group of three tenements covering 235 square kilometres of the southern extension of the Junee-Narromine Volcanic Belt of the Macquarie Arc, in the Riverina region of NSW.
The volcanic belt is host to the world-class deposits of Cowal, owned by Evolution, boasting roughly 14.3 million ounces of gold; and Northparkes, owned by CMOC and home to around 4.5 million tonnes of copper and 5.5 million ounces of gold.
Potential for world-class copper-gold find
The geology in the area consists of buried intrusive complexes of alkalic affinity in a similar geological setting as at the world-class Northparkes copper-gold mine.
Historical drill results include:
- 110 metres grading 0.64 g/t gold and 0.01% copper from 139 metres;
- 16 metres grading 1.71 g/t gold and 0.04% copper from 276 metres;
- 74 metres grading 0.15% copper and 0.02 g/t gold from 226 metres; and
- 50 metres grading 0.15% copper and 0.04 g/t gold from 282 metres.
In 2024 the company will kick off reconnaissance exploration on site, which will initially consist of airborne gravity surveying, detailed drone magnetics and aircore drilling gridded over the 10 intrusive complexes to improve alteration and litho-geochemical mapping.
The targets defined from this reconnaissance work will then be tested with detailed geophysics and deep drilling.
Alkane managing director Nic Earner said: “It is great that the transfer of titles for these two exploration packages has been approved.
“We will now be drawing on our decades of experience, particularly the extensive geological knowledge accumulated at Boda and Kaiser, to conduct cost-effective first-stage exploration evaluation of these new prospective areas.
“We expect that these tenement packages are another opportunity for us to continue to build on our track record of exploration success in New South Wales.”