Shree Minerals Limited (ASX: SHH) has today on 8 March 2019 disclosed an update regarding the decision to exercise the Golden Chimney gold project following the granting of the lease on 20 February 2019.
SHH Executive Director Sanjay Loyalka has said that the management has been eager to commence exploration activities on the Golden Chimney gold project. The project has now received formal granting, and the Company is in a position to execute a clear exploration strategy to determine the prospectivity of these prospective gold assets.
WA gold has been a strong sector, and the Leonora province has re-emerged as a historic gold region. The management looks forward to updating shareholders on the progress in WA while it also continues to advance the Nelson Bay Iron project in Tasmania.
The Golden Chimney Exploration license (E40/378) is located approximately 180km north of Kalgoorlie, 45km South of Leonora WA, 13km South of the historic Ulysses gold mine, 40km South of the Thunderbox (Kallis) gold mine, 60km South West of the Murrin South Nickel Cobalt Mine with the main highway passing through the application area.
Golden Chimney is interpreted to comprise epigenetic vein and lode style mineralisation hosted in iron-rich host rocks such as the dolerite sills. Structural corridors host to local gold deposits contains notable amounts of white buck quartz with gold occurring in narrow bands of laminated quartz with shoot orientations characterised by kinks relating to cross-cutting features. Rheology plays a part in that the competent dolerite and or more competent and or fractionated granite may host the most favourable sites for mineralisation. i.e. brittle fracture and structural intensity.
Before this, it has been announced by the exchange that the securities of the company had been suspended from the official quotation reason being a breach of Listing Rule 12.1 of the Listing Rules. This is about a pending clarification of a production target contained within SHH’s announcement of 20 February entitled ‘Shree Minerals Limited to reassess Iron Ore project mining potential following recent Iron Ore price increase’. Hence the suspension will continue until SHH can demonstrate compliance with Listing Rules.
Previous geological activities have suggested the requirement for additional geophysical and geochemical work to further test the mineralised potential of the prospects. Positive initial exploration initiatives will provide a higher level of certainty to follow up the prospects with a targeted drilling program. Recent success at the Ulysses project, which is in a similar structural corridor to Golden Chimney, should increase the prospectivity of this area.
On the price-performance front, the stock has posted returns of -27.27%, -14.29% & 20% over the past six months, three & one-month period respectively as at February 18, 2019. SHH’s shares last traded at a price of $0.006 & has a market capitalisation of ~$ 3.60 Mn. It had a 52-week high price of $ 0.017, with an average volume of, 1,295,174 approximately.
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