A significant new gold discovery with near-term production potential has been acquired by Black Swan Gold Mines (VSE) in Western Australia. Located 285 miles north of Perth, the Carlinga Well project currently hosts some 330,000 tons of reserves grading 0.11 oz gold per ton.
A major drill program will begin this month which could at least double these reserves, the company expects. The Carlinga A zone will be tested along strike and down dip while reconnaissance work checks out several other targets including a strike extension of the A zone where oxidized chip samples returned gold values up to 0.5 oz.
A budget of $600,000(A) has been allocated for drilling this year with a view to “defining a mineable reserve which can be brought rapidly to production,” says director Ross O. Glanville. The drill program will concentrate on the known zone which has a strong geochemical signature across a width of 1,000 ft.
Black Swan can earn a 70% interest in the deposit and the 340-sq- mile property which involves a large greenstone belt. An Australian company, Polaris Pacific, which brought the project to Black Swan, can earn a 9.9% interest by contributing 16.5% of Black Swan’s expenditures.
The mineralization at Carlinga Well is hosted by pyritic banded quartz sericite schists and the geological setting is similar to several large volcanogenic gold-bearing sulphide deposits including Hemlo in Canada and the Big Well in Western Australia, says Black Swan.
Gold-bearing mineralization was found in float material in a program of prospecting and sampling and a large pod of mineralization was isolated in a major shear zone which incidentally runs for several miles on the property. The deposit is near surface, heavily oxidized, and would require conventional milling procedures if economic, the company states.
Black Swan has a 25% interest in the Gabanintha gold mine near Meekatharra in Western Australia.
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