- ELA6044 includes 9 historical gold workings with no exposure to modern exploration techniques
- Applied Exploration licence adjacent to the Krakatoa and Alkane’s tenements, in the north-northeast direction, parallel to the regional strike and folds
- Shree continues to grow by securing new prospect grounds in the World class mining neighbourhood
Shree Minerals Ltd (ASX:SHH), a diversified developer and explorer, announced lodging of an application for the Exploration Licence (ELA6044) in the world class Lachlan Fold Belt in New South Wales. The Exploration Licence application is located almost 15 kilometres north of Bathurst and holds the potential for extensive gold mineralisation.
The tenement stretches over a folded sequence of aged Devonian sediments and lesser volcanics, a lithologically similar structural setting as the Hill End Goldfield, almost 15 kilometers to the northwest. The Pure Alumina (previously Hill End Gold) holds a known mineral resource of over 4.68 million tonnes with a grade of 3.3g/t Gold containing 501,552 ounces of Gold in the reported area.
ELA6044 location plan, geological setting, and gold occurrences Source: Shree Minerals
The ELA6044 is surrounded by EL8942 and EL8940 owned by Krakatoa Resources Ltd (ASX:KTA) and Alkane Resources Ltd. (ASX:ALK) to the east. Krakatoa’s Quartz Ridge prospect is located along with a 1.6km gold mineralised trend which returned a gold grade of 10g/t during the rock chip sampling program with grades ranging up to 1,530g/t gold and observing an intersection of 10m at 1.64g/t Au from the surface.
The gold mineralisation trends south-southwest on the application area parallel to the to the fold axes and the faults. On the other hand, a 2.4km long mineralised trend with rock chip sample grades up to 60g/t Gold is located towards the east at the Britannia mine.
Highly prospective area in the Tier 1 mining Jurisdiction of Lachlan Fold Belt
Over 9 historical gold occurrences are located within the Shree’s tenement application area and align in the north-northeast direction parallel to the regional strike and folds. The historic gold workings include shafts, shallow working, and areas of alluvial mining with no exposure to modern exploration techniques.
The underexplored exploration area with highly prospective historical gold mining regions possess a potential for gold mineralisation and is a part of critical exploration ground in the trending Lachlan Fold Belt. The historical exploration activities have summarised the presence of gold and base-metal geochemical anomalies associated to the volcanic rocks.
Shree’s in the prospective Lachlan Fold Belt Source: Shree Minerals ASX update
The au courant audience must know that the Lachlan Fold Belt is home to World class Gold and Copper mining operations such as the Newcrest Mining Ltd’s (ASX:NCM) Cadia Mine, Alkane Resources (ASX:ALK) Tomingley Gold Mine and Evolution Mining’s (ASX:ALK) Lake Cowal Gold Mine.
The Way Forward: Future Exploration Program
Shree plans to initially compile the existing exploration data and plan the ground inspection and assessment of the historic gold workings. The ground inspection of the historical gold centres is anticipated to include a geochemical sampling and assaying program. Shree plans to initially prioritise the exploration of the northern portion of the tenements and possible extension of gold mineralisation identified by Krakatoa Resources within the tenement area.
SHH follows a strategy of diversifying and securing ground in the prolific mineral fields. Ever since the mega Boda gold discovery, the Lachlan Fold Belt has emerged among the hottest exploration grounds for Gold exploration across Australia. The application of the exploration license “ELA6044” is in perfect coherence to Shree’s growth strategy. The Company would continue to secure additional prospective tenements as and when the opportunity arises.
Shree Minerals closed at $0.0060 a share on 31 July 2020, with a market capitalisation of $3.65 million.
All financial information pertains to Australian currency unless stated otherwise.