Update on High Grade Golden Blocks Gold Project in New Zealand
Perth, April 16, 2015 AEST (ABN Newswire) - Strategic Elements (
ASX:SOR) is pleased to provide further information on the high grade Golden Blocks project in New Zealand. Fieldwork reported grades up to 5.75 g/t gold in tailings from the Golden Blocks battery tailings area, in addition to estimated grades of 31 g/t gold and 257 g/t gold in alluvial samples from creeks draining the Aorangi and Anthill mines respectively.
The Company has taken significant encouragement from the fieldwork conducted. These latest results combined with previously announced historical mine data, research, field investigation of old workings, geochemical sampling, field mapping and structural studies have assisted the Company in evaluating and confirming the most targeted and cost effective exploration strategy for the historic goldfield.
The Company believes the strategy it has followed and the extensive work it has undertaken to understand the geology and distribution of gold anomalies will be critical in successfully progressing the historic goldfield, and ensuring shareholders' funds are utilised in the most effective manner.
The result of the combined work is being incorporated into an announcement expected to be released within the coming weeks.
Golden Blocks Battery Tailings Samples
Tailings from the Golden Blocks battery were stored in a tailings pond, which was unusual at the time, when battery tailings were normally disposed of down creeks. Stamper batteries were relatively inefficient in recovering gold, and recovery from the Golden Blocks battery was reported as 70% by two Mines Inspectors. This implied that a significant amount of gold could have been lost to the tailings.
Using 100-year-old photos of the Golden Blocks battery (one of three batteries within the permit), the Company located the tailings pond, and conducted a sampling program to test the grade and thickness of the remnant tailings from the battery. It was found that only the southern wooden wall of the tailings pond remained and that most of the tailings had been eroded away over the 100 years since the mine closed in 1914. The remaining battery tailings comprised of fine quartz sand mixed with soil and clay.
The Company completed an auger-sampling program taking 17 samples over 0.5 metre intervals from 6 auger holes up to a maximum depth of 1.85m. After analysing the samples, it was found that the highest grades occurred in the top 0.5m of the auger holes. The grades reduced below 0.5m depth.
Sample Auger hole Grade Interval (m)7601 ABAH1 5.75 g/t 0 to 0.57610 ABAH4 3.51 g/t 0 to 0.57608 ABAH3 3.48 g/t 0 to 0.57616 ABAH6 3.23 g/t 0 to 0.5
After researching the tailings, the Company discovered an advertisement in a 1914 newspaper in which approx. 2000 tons (1968 tonnes) of tailings were advertised for sale at a grade between 6 pennyweights (9.5 g/t) and 7 pennyweights (11.1 g/t). This advertisement confirmed the tailings target that the Company had sought.
Aorangi and Anthill Mine - Alluvial Creek Samples
Two alluvial samples were taken from trap sites in creeks draining the Anthill and Aorangi mines to confirm the present level of alluvial gold in the creeks draining the mines. Both creeks have been extensively mined historically for alluvial gold. Assays showed estimated grades of; 257 g/t in Anthill Creek, which drains the Anthill Mine, and 31 g/t in Little Slaty Creek, which drains the Aorangi Mine. The Company is yet to commence exploration of the Anthill Mine. West Wanganui Project Area Extended
In a sign of strengthening confidence in the project area, further ground has been covered to the southwest of the existing prospecting permit (PP 54207 West Wanganui), through an additional Prospecting Permit. The Company is pleased to confirm that its additional prospecting permit (PP 56791) has been granted. The additional area was lodged to enable the Company to follow-up structural targets identified by its specialist consultants, and historical geochemical gold anomalies in drainages. A previous regional program completed by CRA in 1987 identified anomalous gold within the new prospecting permit area. Panned concentrate gold assays of 7.4 g/t and 2.5 g/t were reported from different sections of the Turimawiwi River.
The Company's combined permits cover a total area of 227 km2, which sit within the boundary of the former privately held Taitapu Block. The Taitapu Block was land principally used for logging, mining and farming, and today, the area is contained within Department of Conservation land. Large mining operations such as Oceana Gold's Globe Progress mine operate within Department of Conservation land in Reefton, and in 2010, there were 57 mining operations on Department of Conservation land.
Notably, land in the former Taitapu Block was excluded from the proposed boundary of a National Park, which was modified to specifically exclude some areas of previous and present mining activity, or significant mineral prospectivity, including the former gold mines of the Golden Blocks goldfield.
Summary and Results
The results of the combined work is being incorporated into an announcement expected to be released within the coming weeks.
To view additional resource data, please visit:
http://media.abnnewswire.net/media/en/docs/79740-ASX-SOR-20150416.pdf
About Strategic Elements Ltd
Strategic Elements (ASX:SOR) shares are listed on the Australian Stock Exchange under the code “SOR”. The Company is registered under the Pooled Development Program run by the Australian Federal Government to encourage investment into SME’s. To assist Pooled Development Fund’s to invest and raise capital, the Federal Government enables most shareholders in a Pooled Development Fund to make capital gains and receive dividends tax-free.
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