MC - $1.5m
SP - 3c
Shares - Approx 50m (definitive numbers are hard to find, my belief is there are around 80+m in escrow)
Options - ?
Cash - $3.4m
Strategic Seeks Strike Extension of Reefton Goldfields
Strategic Elements announce that Strategic Materials Pty Ltd (100% owned) has substantially extended the area of the Reefton South project. The project is located 3km along strike from the prolific Reefton goldfield, which historically produced approx. 2,100,000 ounces of gold. The project has potential for a strike extension of the Reefton Goldfield.
The Reefton goldfield is undergoing a significant resurgence with major mining company Oceana Gold Ltd developing the Globe Progress Open Pit mine with a JORC resource of 1,200,000 ounces of gold. Oceana Gold believes the Reefton goldfield to be “under-explored” with “excellent potential for further exploration success”. They are seeking to reopen further old mines, such as the Blackwater mine, and make new discoveries through new exploration approaches.
Seeing Through Cover
The Company has extended its Reefton South application to cover an extensive area of ground south of the Reefton goldfield. A layer of gravel and glacial till covers the prospective gold bearing rocks. Old miners could not explore these prospective rocks beneath the cover. This has left the project area completely unexplored for hard rock gold, despite it being only a few kilometers along strike from southern end of the Reefton goldfield.
For some time, the Australian government has supplied airborne geophysics data to explorers to assist them to ‘see through the cover’. Thus in Australia, an area with such close proximity to a major goldfield would have already been extensively explored. This year will see the very first release of New Zealand government airborne geophysics data over the Reefton goldfield and the Company’s Reefton South project area. The Company is extremely appreciative of the efforts of the West Coast mining industry and government bodies that have organized and funded the critical airborne geophysical surveys currently being conducted.
Oceana Gold have also recently announced a new Reefton gold discovery (near Big River) by applying a new approach to exploration to explore under the thin layer of cover. They are using a wacker drill (modified jack hammer) to reach bedrock under cover. The company will also seek to apply this technique in its project area where depth of cover is appropriate.
Reefton is a very high-grade goldfield, Oceana Gold have announced new exploration drilling intercepts at Big River of 3m @ 18.5 g/t and at Blackwater of 1m @ 23.3 g/t, and the average grade of the historical mining was typically around 15g/t gold, ranging up to two ounces.
West Coast Rare Metals Exploration Update
The first round of fieldwork on the West Coast of the South Island, New Zealand has been completed.
Strategic Elements Ltd (ASX:SOR) is pleased to announce that Strategic Materials Pty Ltd (100% owned) has completed its initial phase of work at the Hohonu rare earths prospect. A preliminary visit to the Falls Creek tungsten prospect was also made.
Samples will be sent for assay, and reports will be prepared by consulting geologists. Assays and reports will also be submitted on samples that have been sourced from previous exploration conducted in the area.