Paynes Find is a historically significant gold producing region 420km Northeast of Perth, Western Australia, accessed by the Great Northern Hwy and a local airstrip. Practically all of the historic Paynes Find Goldfield is included in the project tenement package within an area 5.5km long by 2km wide. Ten major gold-bearing lode lines had been identified together with 36 historic gold mines that mined grades ranging from 15g/t Au to as much as 150g/t Au.
The Company has signed a Binding Term Sheet to sell 100% of the tenements known as the Paynes Find Gold Project to Cervantes Gold Pty Ltd, a wholly owned subsidiary of Cervantes Corporation Ltd (ASX: CVS).
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Additional work that has been completed on the project include the geological and structural mapping that has identified numerous gold mineralised quartz reefs over a width of 600m across the main northern section of the Paynes Find Goldfield.
The mapping suggested an average quartz lode separation of approximately 15 metres. There is also geological evidence of lower grade “link” structures between the main high-grade gold lopes.
The dense quartz vein mineralisation, in a strongly deformed quartz diorite host, has continuous outcrops over a strike length of at least 2,000m before dipping beneath laterite cover.
Additional mineralisation has been identified over a total distance of at least 3,000m and within various rock types flanking the main goldfield.
An MMI geochemical survey and Stage 1 drilling was conducted at the project.
The drilling programme consisting of 3,800 metres has been completed with significant results in the 69 RC holes drilled. Results from the Stage 1 drilling programme, as shown in the Composite Cross Section 6763915 North, across the Northern end of the Stage 1 drilled area, confirm presence of near-surface gold mineralisation and that gold mineralisation occurs over widths potentially amenable to bulk selective mining.
The Stage 2 area is a direct Northern extension of the gold mineralisation within the Stage 1 drilled area. During the late 1980’s Falcon Australia Limited drilled 3,150 metres within this area and only sampled 570 metres of drilling. Falcon only assayed the visible quartz vein material when observed in drill cuttings. This represents only 18% of the total metres drilled. The exploration target was for high grade underground mineable gold rich quartz veins and not low grade mineralisation amenable to bulk selective mining. The latter is the subject of further evaluation of possible resource potential by the Company.
A Longitudinal Section of the Carnation Line prepared by Falcon in 1987 shows the results from their extensive channel sampling. The assay results confirm significant high grade gold mineralisation remains in the upper levels of the old gold mines. Sampling and mapping (by Falcon) of a further 14 underground workings reveal significant widths of high and low grade wall-rock gold mineralisation adjacent to the main reefs.
Between 8,000 and 10,000 metres of RC drilling is planned for the Stage 2 area to a nominal depth of 60 metres.
The Stage 1 drilled area and the Stage 2 Planned Drilling Area represents only 5% of the surface area of gold mineralised geology within the Paynes Find Goldfield.