Yandal Resources Ltd (ASX:YRL) is confident of enhancing its gold standing in WA's Goldfields after acquiring the rights to a tenement that covers a significant interpreted structure extending south from the Gordons Project towards Kanowna Belle.
The tenement near Kalgoorlie was acquired following the initial first phase results of a three-dimensional geological modelling and targeting exercise over the entire Gordons Project conducted by independent consultant Ben McCormack from Outlier Geoscience.
He identified a structural corridor that extends through the Star of Gordon Prospect to the immediate south of the Gordons Project towards the +6.4-million-ounce Kanowna Belle mine of Northern Star Resources (ASX:NST).
Geological setting
This corridor includes geological architecture permissive for the formation of significant gold deposits including stratigraphy interpreted to be the same or equivalent to that at Kanowna Belle.
McCormack’s work has led to Yandal acquiring exploration licence E27/701 adjacent to the Gordons Project and covering an additional 8 kilometres of strike to the interpreted structural corridor.
Yandal Resources’ managing director Tim Kennedy said: “The Gordons Project contains multiple prospects that have returned very good results from initial exploration including Gordon Star (eg, 10 metres at 8.4 g/t gold and 8 metres at 4.7 g/t).
"The challenge until now has been to prioritise and rank these prospects. The recently completed interpretation and targeting work undertaken by Ben McCormack has enabled us to refocus our efforts on those parts of the project with the highest potential for significant discovery.
"Importantly, it has highlighted an area immediately south of the project with all of the geological ingredients for a significant discovery that has yet to be explored in detail.”
Gordons Project tenement map showing the location of interpreted Gordon Sirdar Shear Zone with newly acquired Moho E27/701 (grey) and residual tenement (purple).
The company regards this as an excellent opportunity to explore an area in an exceptional geological setting for the discovery of significant gold deposits near the major mining centre of Kalgoorlie.
HOA with Moho Resources
A binding Heads of Agreement (HOA) to purchase 100% of E27/701 abutting the southern margin of its’ Gordons Project has been signed.
This tenement is currently in the application phase by Moho Resources Ltd (ASX:MOH) and completion of the HOA is conditional upon granting of the tenement to Moho.
To this end, Yandal is working with Moho Resources to expedite the licence grant to facilitate the start of exploration.
"Yandal has secured this key area through the recent tenement acquisition from Moho Resources. We are very much looking forward to commencing exploration in the area following tenement grant," Kennedy said.
Schematic views of broad-scale 3D modelling showing (left) interpreted boundaries of Scotia-Kanowna Granite from Bouger gravity and (right) rendering of granite morphology (pink) and location of key structures (red).
Modelling outcomes
Although the modelling and targeting is work is ongoing, the outcomes and findings from the Phase 1 interpretation are:
- The delineation of the Gordon-Sirdar Shear Zone and associated splays (GSSZ), which extend through the Gordons tenure and are coincident with the Star of Gordon prospect.
- Recognition that the GSSZ is associated with a steepening of the eastern margin of the main Scotia-Kanowna Granite Dome. This geometry provides opportunities for enhanced fluid permeability and strain partitioning making it an ideal location for targeting larger-scale gold mineralisation.
- The identification of a keel of mixed greenstones interpreted to be similar to the Kanowna Belle lithologies extending south of the Gordons Project (and within the recently acquired lease).
- The GSSZ shear zone near the Star of Gordon prospect area remains a high-priority target. Further exploration will test the potential for plunging targets at depth.
The area within E27/701 despite being very close to Kalgoorlie and within the same structural regime as Kanowna Belle, has been subject to very little past exploration.
This is most likely due to the intermittent presence of salt lakes across the area of interest, which has hampered previous exploration attempts. In recent times, several examples of successful exploration across salt lakes in Western Australia have resulted in significant discoveries.
Yandal regards this as an excellent opportunity to explore an area in an exceptional geological setting for the discovery of significant gold deposits near the major mining centre of Kalgoorlie.
Phase 2 work
Phase 2 of the geological modelling and target generation will comprise the collection of detailed geological information over the most prospective part of the GSSZ north and south of, and including, the Star of Gordon Prospect.
A comprehensive program of portable XRF analysis of core and RC chips along with select fences of drilling, in addition to surface mapping will be undertaken.
The aim of this is to geochemically categorise lithologies in the Star of Gordon area as well as map the extent of alteration associated with gold mineralisation.
Modelling the geology from this data is intended to identify target positions beneath or within existing drilling for further drill testing.
Acquisition terms
Key terms of the acquisition are:
- Yandal to acquire 100% of E27/701 through the payment of $50,000 (plus GST) in cash to Moho. Payment comprises an initial $10,000 to enable Yandal to complete due diligence on the tenement, with the balance to be paid upon grant of the tenement.
- Moho to retain 100% of the nickel (and associated metals) and a 1% NSR on all gold production. Yandal to have a 1% NSR on all nickel and associated metals produced from the tenement.
- As part of the consideration, Yandal will assay all exploration samples for nickel and related elements on all surface samples and in all mafic and ultramafic lithologies intersected during drilling.