MinRex Resources is actively exploring near $1.1 billion Silver Lake resource
30 March 2020, Written by Business News Australia
Gold explorer MinRex Resources (ASX: MRR), which holds ground just a few kilometres north-east of the $1.2 billion capped Silver Lake Resources Ltd's (ASX: SLR) gold and copper Deflector Mine, is set to release new exploration results at its Deflector Extended Gold Project at Gullewa in Western Australia.
MinRex currently holds five projects, four of which are located in the East Pilbara region. The East Pilbara 70 per cent-owned projects consist of Bamboo Creek Gold Project, Marble Bar North Gold Project, Marble Bar South Gold Project and the Daltons Gold Project.
The Deflector Extended Gold project is 100 per cent owned by the ASX micro-cap and lies to the north-east of Silver Lake Resources' Deflector Mine and also the gold producing Golden Stream open-cut mine.
Gullewa is a known gold producing region.
Gold was discovered at Gullewa as far back as 1894, with historic production occurring in the region from 1897 to 1942.
During this period a reported total of 36,000 ounces of gold was produced from a total of 24,000 tonnes of ore at an overall recovered grade of 46.3 g/t gold.
Modern mining commenced in 1994 and by 2003 the processing of 530,000 tonnes of ore at a grade of 2.6g/t Au had resulted in the production of some 39,000 ounces of gold, mainly from open cut mining but with a small underground component.
Mining re-commenced in 2016 with the opening of the Deflector Mine, as an underground copper-gold operation, with production to date estimated at about 110,000 ounces of gold, greater than the previous historic production.
Current gold price a bonus
With the Australian dollar gold price hovering in the vicinity of $2,600 per ounce (as the AUD remains weak), the new results couldn't come at a better time for MinRex.
The price of gold relative to the Australian dollar (currently 61 cents), also highlights the value in speculative gold stocks.
In this case the $1 million capped MinRex, could benefit as gold continues to rally on the back of coronavirus-led uncertainty.
Assay results due in April
MinRex's pending results follow the completion of a detailed geological evaluation and sampling program, which is set to build on encouraging results previously obtained within the project area.
During this latest field sampling program, a total of 144 rock samples and 131 soil samples (a total of 275 samples), were collected from throughout the licence area but principally in the scree covered area immediately to the north of the Cagacaroon Hills containing the principal anomalous areas.
MinRex has now collected a total of 744 surface rock samples at the Deflector Extended Gold Project, 725 soil samples and 185 auger drill samples, which have defined significant anomalous zones for further examination and sampling.
There have also been prior programs of RAB drilling, aircore drilling and soil sampling by earlier explorers of the area with these results supporting the definition of the identified anomalous zones.
The assay results for the 275 samples collected in the current exploration program are expected in mid to late April 2020 and will be released, along with locational data, maps and plans, as soon as possible after their receipt.
The next phase of field work at the Deflector Extended Gold Project will again concentrate on the defined anomalous zones, but also include some further reconnaissance work elsewhere in the exploration licence.
It is probable that this work will be completed during the winter field season of 2020, suggesting a high rate of news flow throughout the year.
MinRex to ramp up Pilbara exploration
MinRex is preparing for an active field season throughout all its East Pilbara Gold Project areas.
The company will consider completing detailed airborne and surface geophysical programs over all five of the East Pilbara mineral tenements with the aim of generating exploration targets and delineating more prospective terrains that may be present within the mineral licences.
Quotes have been received for completing close spaced airborne magnetic and radiometric geophysical surveys and ground surveys at the two smaller Marble Bar licences, covering MinRex's five East Pilbara mineral licences.
Further rock sampling, soil sampling in colluvium and soil covered areas and detailed geological mapping will also be used to better understand these complex gold, base metal and poly-metallic mineralised systems at the Daltons, Marble Bar and Bamboo Creek Gold Project areas.
This 2020 field work will collect numerous rock and soil samples, and include air photo analysis and geological mapping, along with the geophysics programs.
This work will aim to build on the results received from the previous six exploration programs that MinRex has completed in the area within the past two years.
It is planned to commence this work as soon as possible after the current summer hot and wet season in the East Pilbara and will factor in the successful completion of the current capital raising program that MinRex now has underway.
This story was published in partnership with Finfeed.
Author: Business News Australia