Searching For Gold In Historic Otago Region
NewPeak Metals Limited (ASX:NPM) has commenced a maiden drilling programme for the Cap Burn Gold Project in the Otago District of New Zealand.
Managing Director, David Mason, said the programme will test the main large, mineralised surface anomaly within the Cap Burn Project’s East Block.
“The commencement of our maiden drilling program at the Cap Burn Gold Project is an important step forward in NewPeak’s Gold exploration strategy,” Mr Mason said.
“We are more than pleased to have begun drilling in one of the World’s top Gold mining jurisdictions, Otago, New Zealand.
“The project is early in its exploration process and the focus over the next few months is to test the mineralisation models and to discover and define other mineralised prospects.”
NewPeak acquired a large portfolio of Gold properties in the Otago region of New Zealand, in its own right and through joint venture with MRJV. The Cap Burn granted Exploration Permit EP60300 is part of this Otago Gold portfolio. The project consists of two separate blocks, the East Block and the West Block, with a total area of 19.5 sq. km. The maiden drilling programme evaluates the large mineralised surface anomaly in the East Block.
The current geological interpretation and mineralisation model point to the Cap Burn Gold Project as having significant potential for the discovery of a large Gold system, similar to others in the region. The drilling programme is being implemented to test this theory.
Three anomalous Gold-Arsenic targets have been identified within Cap Burn East Block. The purpose of the maiden drilling program is to initially test two out of three of these targets at depth, to:
- gain a more comprehensive understanding of the relationship between these targets;
- confirm the major structures; and
- seek additional Gold mineralised targets.
Target 1 is defined as a 1,000m by 1,000 m Arsenic soil anomaly with coincident Gold in soils and rock chip samples. A series of at least 12 shallow and deeper diamond drill holes (maximum depth of 200m) has been designed for a total of over 1,000m, which will test the source of the surface anomaly and the potential for the underlying schist to host economic mineralisation.
Drilling has now commenced on the first drill hole as part of a several month drilling programme. Five holes are planned to be drilled in December 2020 and operations will break over the Christmas-New Year public holiday period and recommence early in January 2021. The programme is fully funded.
Alton Drilling is contracted to carry out the work utilising a track mounted R37 XHD1150 drill rig.
In other news, NewPeak reported that the drilling programme for its Argentine Cachi Gold Project will now commence in January 2021 due to an outbreak of COVID in the Santa Cruz province. The outbreak occurred specifically at the Cerro Vanguardia mine where the drill rig for the Cachi project is stationed. Mobilisation has been delayed due to quarantine restrictions on the drilling contractor, and this has subsequently moved the drilling window to early January 2021.
