Alice Queen Releases Update on Exploration Activities at Horn Island and Northern Molong Projects

Alice Queen Limited (ASX: AQX), a Victoria-based advanced gold and copper explorer, on 23 January 2020, released an update for exploration activities across all its projects. The company has its flagship project - Horn Island in Queensland and other key projects in the Northern Molong Belt region, which are the centre of its strategy towards boosting shareholder value in 2020.

For the Horn Island gold project, the company has an earn-in and joint venture agreement (EIJVA) with AUD 2 billion market capitalisation company- St Barbara Limited (ASX: SBM), targeted towards mutually exploring and developing the project into a profitable gold mine.

To know more about the AQX-SBM deal, do read: An In-depth Look at Alice Queen - St Barbara Joint Venture for Horn Island Project

Earn in Right

Under the EIJVA, SBM holds the right to earn into the project (maximum 70 per cent interest) in exchange for a sole funding of AUD 4 million within a 3-year period.

As of now, as part of their tie up, following activities have been completed:

• The soils and rock chip programs were concluded in October 2019.
• The subsequent ground Dipole Dipole Induced Polarisation (DDIP) Survey was finalised before 2019 Christmas.

Results from the completed programs are due for assessment ahead of the next stage in the exploration program.

Excluded Zones

There are few “excluded zones” from the deal, including the historic Horn Island Pit area, where drilling is now underway as part of a targeted PQ diamond core drill program, which involves three holes for 540 metres.

AQX is targeting the program towards providing a larger sample size from within the existing Mineral Resource in order to further advance planning for future drilling at the Mineral Resource. Additionally, the program would generate sufficient material for bulk ore sorting testwork.

The company plans to conduct the testwork with Tomra ore sorting technologies, as they have the potential to lower the mass of material by a significant level before milling by separating the veins from the host rock.

The gold within the Horn Island Inferred Mineral Resource is predominantly contained within the quartz veins and not within the host rock. Given Tomra is successful in achieving what is expected, there could be significant reduction in both the scale and cost of the processing plant required. This might also result in potential operating cost savings for the company.

Update on New South Wales Projects in Northern Molong Belt

Yarindury Project - Diamond Drilling Program Nearing Completion

In the Yarindury project targeting large-scale copper gold (Cu Ag) porphyry systems, the company owns a 100% interest. In September 2019, AQX announced the enhanced prospectivity of the project after exceptional copper-gold results were unveiled by, AUD 400 million market capitalisation gold producer Alkane Resources Limited (ASX:ALK) within 700 metres of the boundary of the project.

A diamond drilling program at the project is nearing completion, with the drilling process currently at the ninth hole. Moreover, the company is in land access negotiations to get access to additional target areas. Drilling applications are also being made to secure further approvals within the Yarindury licence.

Interesting Read: Alice Queen Recommences Drilling at Yarindury Project, Focusing on Eleven Targets

Mendooran South - Two New Porphyry Targets Generated

Alice Queen has undertaken target generation work at the project, owing to geochemical results from 2 previously drilled holes at Mendooran South and exploration drilling in bordering norther Yarindury area.

The work resulted in the identification of two further large-scale copper gold porphyry target areas for future exploration. The company plans to progress these target areas during 2020.

Mendooran – Access Arrangements Under Progress

For the Mendooran project, the company concluded a Review of Environmental Factors (REF) and lodged the same with the New South Wales, National Parks and Wildlife Service (NPWS) for determination, with the organisation delivering a positive view during late-2019.

As a result, the company is negotiating arrangements while seeking final approvals for land access within the Goonoo Goonoo State Conservation Area of the Mendooran tenement (EL8469).

Boda East - Access Arrangements Underway

Boda East is located within the Yarindury licence area. Alice Queen is continuing to pursue land access within the area, which is adjacent to the Alkane discovery hole with the tenement boundary being only approximately 700 metres away.

AQX Returns Over 141% in Last Six Months

The stock of Alice Queen closed the day’s trading at $ 0.028 on 23 January 2020 with a market cap of $ 23.49 million and approximately 810.16 million shares. In the last six months, the stock delivered a return of 141.67%, while in the past one year, the return of the stock crossed 60%.

Do Read: Australia’s Gold Outlook vis-à-vis Advanced Gold Explorer, Alice Queen Limited

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