Join our daily newsletter At The Bell to receive exclusive market insights
Albion Resources (ASX: ALB) has identified a number of key targets to follow-up after entering into a binding option agreement to acquire the Gidgee Gold project in Western Australia.
Listen to the HotCopper podcast for in-depth discussions and insights on all the biggest headlines from throughout the week. On Spotify, Apple, and more.
After studying data from multiple historical drill intercepts, the company will now examine a range of extensive walk-up exploration targets within a proven WA gold belt that includes deposits hosting more than 2.3 million ounces of gold.
CEO, Peter Goh, said the project also features active neighbouring operations by Horizon Gold and Brightstar Resources.
“The Gidgee Gold project represents a capital-efficient opportunity for Albion to secure exposure to a known gold system in Western Australia while maintaining discipline around entry cost and downside risk,” he said.
“Importantly, the project hosts significant historical drill intercepts at German Well, together with multiple walk-up drill targets that have seen limited modern exploration.
“The option structure provides Albion with the ability to complete detailed technical, heritage and access due diligence before committing further capital. This approach is consistent with Albion’s strategy of selectively building a pipeline of high-quality exploration opportunities, while progressing our core Yandal West project and continuing to evaluate additional opportunities across the portfolio.”
Previous exploration at three German Well prospects indicated multiple zones of gold mineralisation defined by drilling over 2.5km strike which demonstrates the Western splay structure from the major Tokey Shear zone is highly prospective for further discoveries.
Mr Goh said this is supported by the Melbourne Bitter and Wahoo deposits that occur along the same structure to the south. In addition, the Wilson Splay prospects also define significant gold mineralisation within drilling over 3.2km strike and demonstrate eastern splays or subsidiary structures from the main Wilsons Shear that hosts the Wilson underground deposit are highly prospective for further discoveries.
“The Albion technical team considers these targets encouraging, particularly given they have been identified prior to the application of systematic modern exploration techniques. We see this as a logical extension of our WA gold strategy while we continue to progress Yandal West,” he said.
Albion’s exploration plans include the undertaking of a comprehensive regional ultrafine soil geochemical surveys to detect new targets and detailed geophysical compilation and interpretation work.
It is also considering carrying out other geophysical surveys such as gravity to help define mineralised structures not easily discernible in the magnetics.
That work will help define aircore and RC drilling targets.
ALB is up 16.0% to 5.8¢. Mkt cap $7.109M.
Join the discussion: See what HotCopper users are saying about Albion Resources and be part of the conversations that move the markets.
The material provided in this article is for information only and should not be treated as investment advice. Viewers are encouraged to conduct their own research and consult with a certified financial advisor before making any investment decisions. For full disclaimer information, please click here.
