LionOre, partners find gold near Thunderbox

A group led by Australia’s LionOre Mining International (LIM-T) has discovered a gold prospect 7 km south of the company’s Thunderbox gold deposit in Western Australia’s northeastern goldfields.

Named Snapper, the prospect is on the Wilson Creek joint-venture tenements, which are held by the Wildara Joint Venturers (LionOre 60% and Dalrymple 40%) and PacMin Mining. The latter is Teck‘s (TEK-T) 79%-owned, Australian-listed subsidiary.

As part of a regional exploration program along the Thunderbox trend, reconnaissance rotary-air-blast drilling has been completed on traverses of up to 1,200 metres apart.

The drilling intersected significant gold mineralization at shallow depths in three adjacent holes, each of which is 80 metres apart: 32 metres grading 8.2 grams gold per tonne in hole 428; 16 metres of 2.13 grams gold in hole 429; and 6 metres of 1.10 grams gold in hole 430.

The mineralization occurs in an oxide zone 160-200 metres wide. However, LionOre says it is not yet possible to estimate the zone’s true widths nor its configuration.

Follow-up drilling is planned.

LionOre and Dalrymple can earn a 51% interest (LionOre, 31%; Dalrymple, 20%) in the Wilson Creek project by spending A$700,000 over three years. They can boost that to 70% (LionOre, 42%; Dalrymple, 28%) by spending another A$1.5 million over the subsequent three years.

After LionOre and Dalrymple have earned their 70% interest, PacMin can elect to claw back to 49% by solely funding the next A$4.5 million over three years.