Cosmo Metals’ 4000m AC drilling campaign to target historic intercepts at Don Álvaro prospect
Program will run in tandem with ongoing RC drilling at WKL and Dugite targets
Drilling will test limited historical exploration below 150m
Special Report: Cosmo Metals has kicked off a 4000m AC drilling across the Don Álvaro prospect at its Kanowna gold project, targeting historical intercepts which showed up to 5.3g/t gold.
The Kanowna Gold Project (KGP) covers over 26km2 across 14 contiguous prospecting licences in WA’s Eastern Goldfields, 13km from Kalgoorlie.
The project is just down the road from Northern Star’s (ASX:NST) +7Moz Kanowna Belle gold mine which has a plant nearby and there’s further optionality with two other plants within a 15km radius as well.
Target testing at Don Álvaro
The AC program will run alongside an already progressing 2000m RC drill campaign that’s probing historical gold and pathfinder anomalies at the WKL and Dugite targets in the southeast of the project.
The 4000m of drilling will target the Don Álvaro and Laguna Verde prospects, along with numerous untested surface and shallow anomalies.
These targets, CMO says, are associated with NE trending structures and considered analogous to the structural and geological setting of the Kanowna Belle gold mine to the northeast.
They include widespread surficial and near-surface gold at WKL and Dugite and high-grade gold in historical drilling intersections at Don Álvaro and Laguna Verde.
The program will also test the association of gold anomalism with structures cutting the NE-trending Kanowna Shear that bisects the KGP from NW to SE.
The programs are expected to take 4-6 weeks.
Kanowna drill targets. Pic supplied: (CMO)
Opportunity and contractor agreements
“With proven shallow and high-grade historical gold drill intercepts present across the project but limited drilling beneath 150m below surface, there remains ample opportunity to uncover an economic gold deposit at the KGP,” CMO MD James Merrillees says.
“We’re extremely fortunate that any discovery made will lie within one of the world’s premier gold production districts and on the doorstep of several processing operations and a wealth of support expertise.
“We’re also pleased to have entered into an agreement with respected local contractor Challenge Drilling for part payment of the RC program to be made in Cosmo shares.”
Challenge Drilling agreed to part-payment in lieu of cash, freeing up funds for further exploration at Kanowna.
Under the terms of the agreement, Cosmo can elect to pay up to 50% of the invoiced costs of the program in Cosmo shares – priced at a volume weighted average price (VWAP) over a 20-day period leading into the date of invoicing.
“This represents prudent allocation of the company’s cash reserves and aligns a key contractor with the interests of all shareholders,” Merrillees says.
This article was developed in collaboration with Cosmo Metals, a Stockhead advertiser at the time of publishing.
This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.
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