Dateline Resources (ASX:DTR) has acquired its own rig to undertake drilling at the Colosseum gold and rare earth element (REE) project in California.
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The second diamond rig has already commenced work at Colosseum to allow Dateline to accelerate its exploration work at the project.
MD, Stephen Baghdadi, said that due to the expected scale of the drilling program ahead, Dateline took the opportunity to acquire a suitable track-mounted drill rig that is capable of drilling holes to 1200 metres depth.
The second rig will work in tandem with the Major Drilling-owned rig on site to complete the 12-hole REE program before being deployed to test the other gold and REE targets within the area. Depending on timing and requirements, the second rig may also be mobilised to undertake programs at Music Valley and/or Argos.
“The acquisition of the drill rig makes strong commercial sense given the expected scale of drilling over the coming years,” Mr Baghdadi said. “Securing another owner-operated, track-mounted rig provides greater flexibility to drill a wider range of targets, particularly in areas where conventional truck-mounted rigs cannot access.”
He continued: “Our company-owned third rig is also being deployed to support additional drilling aimed at expanding what we believe has the potential to evolve into an underground gold resource after open-pit mining is completed.
“With multiple rigs operating, we expect a meaningful increase in both REE and gold-related news-flow over the coming period.”
The historic Colosseum gold mine has a JORC-2012 compliant mineral resource estimate (MRE) of 27.1 million tonnes at 1.26 grams per tonne gold for 1.1 million ounces.
Dateline also own the high-grade Argos strontium project in California, reportedly the largest strontium deposit in the US.
DTR is down -2.53% to 48.3¢. Mkt cap $1.803B.
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