High-Grade Gold Mineralization Reported At Spectrum Metal’s Penny West Gold Project

  • Jan 16, 2019 AEDT
  • Team Kalkine
High-Grade Gold Mineralization Reported At Spectrum Metal’s Penny West Gold Project

Spectrum Metal Limited (ASX: SPX) is an Australian based metal and mining company. The company is into the exploration and development of gold through its high-grade brownfield assets. SPX has three projects under its portfolio.

The Whaleshark Pilbara Gold Project, located 50 km from Onslow, has high prospects of copper-gold, whaleshark, and marlin minerals. It has Palaeo-Proterozoic host rocks. The intersection of 1 g/t gold has been discovered under more than 100m of cover. The company has two exploration licenses for the project which covers an area of ~156 square km.

The Penny West Gold Project is situated 25 km south of Youanmi Mining Centre. It currently holds 36,000 ounces at 5 g/t gold which was acquired for A$27 per ounce. The company has secured two mining leases which cover an area of 878 Ha. It was acquired on 16 October 2018 from Patina Resources Pty Ltd and Plateaux Resources Pty Ltd.

The First Hit Gold Project, located 50km west of Menzies in West Australia, has a pre-mining reserve of 76,000 ounces at 13.4g/t of which 29,000 ounces at 7.65 g/t has already been extracted. SPX has two mining leases and two prospecting leases covering an area of 457 Ha. It was acquired on 04 October 2018 from the tenement owner Mr. Mark Wicksteed.

Today, the company has announced an update over the Penny West Gold Project. An Auger Geochemistry program was conducted last year over the M57/180 and M57/196 mining leases at Penny West. Although the program was completed before the acquisition, the samples were not submitted by the previous owners.

The survey was conducted to identify potential areas having gold deposits, define areas of interest for potential non-auriferous mineralization, and find out structural trends and lithologies throughout the project area.

SPX used a vehicle-mounted mechanical auger rig to collect 1,227 bottom-of-hole samples. These samples ranged from 0.1m to 0.2m depth with a spacing of 50m X 100m and 100m X 100m. These samples were submitted to Intertek in Perth and were assayed for a suite of 33 elements using a 1gm charge with an aqua regia digest. The result was the discovery of gold up to 477 ppb against a median of just 4 ppb.

Nine holes, 17PPD001-17PPD009, were drilled in 2017 and the data from these holes were used to infer potential pathfinder and auriferous associated elements. The Principal Component Analysis (PCA) used at the Project shows that gold is associated with Ag, As, Cd, Cu, Pb, Zn ±Bi, ±Sb, ±W.

The Arsenic (As) distribution shows a clear and wide arsenic corridor which is separated in the central portion by the main alluvial system. Lead (Pb) lies to the north of the Penny West mineralization, and east of the GWSA mapped Penny West structure associated with the Columbia and Magenta prospects. The Columbia and Magenta prospects are also associated with Tungsten (W), and W shows a similar trend to Molybdenum (Mo) to the East. The Mo and Pegmatite are associated with the Youangarra East Project lying to the east of as corridor.

There is a strong Tellurium (Te) linear anomaly lying to the East and is parallel to the As trend in the NE of the project. Zinc (Zn) lies in the north, east and, west (Columbia prospects) of the project and forms a linear anomaly to the central east which is expected to be lithic.

A total of 18 anomalies have been defined of which 5 are considered as a high priority because of high gold grade centered around the Columbia-Magenta Prospect areas, 4 are considered medium priority defined by multiple and geographically associated golds, and the remaining nine to be a low priority because of weaker single point anomalies.

The management is delighted with the results and is expecting its first 4,500m RC drilling program to start in late January or early February 2019 over the high priority targets.

Stock performance: The company’s stock has generated a negative return of 44.44% during the past six months. The shares closed at $0.005 (as on 16 January 2019) with no movement in price during the day’s performance. The company has ~1.05 billion shares outstanding with the market cap of circa $5.26 million. Its 52-week high and low are marked at $0.020 and $0.0040 respectively.


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