NewPeak Metals Moves Closer to Home, Acquires Properties in Gold-Rich Province of Otago

Summary

• NewPeak Metals, earlier named Dark Horse Resources, executed binding term sheets to gain control over highly prospective gold properties in the gold-rich province of Otago, New Zealand.
• The agreements cover a 75% stake in Cap Burn Gold Project, along with 100% interests in PPAs.
• The drill-ready Cap Burn Gold Project lies in close proximity to NZ’s largest gold operations, OceanaGold’s Macraes mine. Surface exploration so far has identified anomalous gold-arsenic mineralisation over 6km² with sample grades up to 3g/t gold, interpreted similar to Macraes.
• Acquisition of the Rock and Pillar, Raggedy Range and Filly Burn Gold PPAs holds strong case for future exploration programs. EPA at the Wild Dog Creek Gold Project, adjacent to Macraes Mine, is also covered under the agreements.

Stock of ASX-listed mineral resource company, NewPeak Metals Limited (ASX:NPM), previously named Dark Horse Resources Ltd (ASX:DHR), surged by a whooping 66.667% to $0.005 on 7 September 2020. The surge in stock price followed an update on the Company’s strategic position in Otago gold properties in New Zealand. The Company announced to have entered binding term sheets to acquire interests in gold permits in the Tier 1 mining jurisdiction of prolific Central Otago region of the South Island.

Under the binding agreements, the Company will acquire –

• 75% stake in Cap Burn Gold Project
• 100% interests in Rock and Pillar Prospecting Permit Application (PPA) adjacent to Cap Burn Project, Filly Burn PPA adjacent to OceanaGold’s Macraes Mine, and Raggedy Range PPA.
• Application for exploration tenement at Wild Dog Creek, which is adjacent to Macraes Mine.

The agreements for acquisition of prospective gold assets in the Central Otago region, which hosts the Macreas Gold mine, have been executed in accordance with second phase of the Company’s new strategic business plan. Currently, Macraes deposit is the largest active gold mine in New Zealand, operating since 1990.

NewPeak Metals: Quality Gold Assets in Key Mining Jurisdictions

NewPeak Metals has a broad gold project portfolio in tier 1 mining jurisdictions. Let us cast an eye over the status and strategy for each country.

Argentina: The Company has exceptional properties in Argentina, where a drilling contract, drilling permits, and other contractual and logistic arrangements are underway with drilling program expected to commence in December 2020.

Finland: In the European country, exploration permits are being transferred from vendor, Sotkamo Silver AB to the Company’s Finnish subsidiary. With some of the permits already transferred, others are expected in upcoming months. Upon completion of the transfer, drilling program at the project would commence.

Must Read: Dark Horse Bets on Key Gold Projects in Record High Gold Market

New Zealand: Acquisition of the Otago Gold properties is a “close to home” opportunity to pursue in the neighbourhood of New Zealand’s largest gold mining operations with possibility for a mega discovery and potential to hold large mineral resources.

Must Read: Get Familiar With Highly Competent Leadership Team at Dark Horse Resources

New Acquisition in Matured Mining Environment Closer to Home

Cap Burn Gold Project: Stationed in the Central Otago region, northwest and along strike of Macraes Mine, the Cap Burn granted exploration permit (EP60300) covers 2 individual blocks over 19.5km² and owned by the Mineral Rangahau Joint Venture.

Macraes gold mining operations include an open pit and underground mine, which has produced over 5 million ounces of gold since 1990 and 172,475 ounces in 2019. The gold mine holds JORC Measured and Indicated resources of 3.5 million ounces of gold.

Of the two separate orogenic gold mineralisation at the permit, one is similar to the Macraes mineralisation on Eastern Block and the other has fracture veins similar to Otago Schist occurrences on Western Block.

• Eastern Block: Stretching over 13km², the block lies on possible extensions of Hyde-Macraes Shear Zone, hosting same greenschist facies as Macraes. Soil sampling indicated gold, arsenic and antimony anomalies over 2-3km². Gold mineralisation in the zone is interpreted to be similar to Macraes Mine due to sampled quartz float returning a gold grade of 3g/t and foliation in anomalous area with similar strike and dip (15 to 20 degrees to the NE) as the Macraes hosting shear zone.
• Western Block: It hosts gold mineralisation in fracture lodes arising after rock metamorphism. Soil sampling over a 3km² area resulted in gold, arsenic and antimony anomalies. 19 out of the 20 analysed quartz vein floats resulted in gold grades in excess of 0.1 g/t and 3 of which returned gold grades of 1 to 2g/t.

The MRJV, comprising equal partners Mineral Rangahau Limited, Western Wood (NZ) Limited and Western Mathew (NZ) Limited, has already delineated 5 drilling targets at the project. The Company expects to proceed to drilling in December 2020 or January 2021.

Rock and Pillar Prospecting Permit: MRJV recently applied for the Rock and Pillar prospecting permit. The application area includes area in between eastern and western blocks of Cap Burn project and surrounding areas covering numerous unexplored soil anomalies. The ground is interpreted to be the potential source of gold placer workings. Further geological mapping and soil sampling is under consideration at the Rock and Pillar area to define the priority drill targets.

Filly Burn Gold Project: The prospecting permit is close to the Macraes mine, immediate south of the Coronation pit on the Hyde-Macraes shear zone. The mineralisation to be explored is interpreted to be similar to that found at the Cap Burn deposit.

Further the potential is enhanced by gold placer workings presence in Tertiary sediment remnants in the east and west of the PPA, and an initial soil sampling program is planned at the deposit.

Wild Dog Creek Gold Project: The exploration permit lies adjacent to the north end of Filly Burn in close proximity to the Macraes mine. The permit area lies within the mineralisation zone containing Macreas and other deposits.

A geological mapping and soil sampling are planned at the project to define strike of the Footwall Fault that would be useful for drilling in a geological setting similar to the Macraes mine.

Raggedy Range Gold Project: The prospecting permit application area hosts the schist texture boundary with gold veining in valley sediments east of the uplift mountain range. An initial sampling program is planned at the Raggedy Range.

Acquisition Terms for Otago Gold Properties: The New Jewel in Crown

The Company reserves rights with MRJV to refuse the acquisition of 100% of each of Rock and Pillar, Raggedy Range and Filly Burn permits, and other permit applications by MRJV in the Otago region for an aggregate 2% Net Smelter Royalty carried interest. Furthermore, this arrangement also includes the Wild Dog Creek permit, which was recommended to the Company by MRJV.