Blaze International (ASX: BLZ) is taking an option over three exploration licences located just south of the important Mt Magnet mining province in Western Australia.
The Mt Magnet field, discovered in 1891, has produced more than 6 million ounces of gold. The Hill 50 underground mine was closed in 2007 and generated more than 2.1Moz of gold. It was the largest gold producer in the field.
Under the option agreement, Blaze will have nine months to explore the licences. If it exercises the options, it will pay unlisted Eastern Goldfields Exploration $1 million in cash, 7.5 million new Blaze shares and a 2% net smelter royalty.
Eastern Goldfields has been prospecting and exploring the tenements for several years, with that work resulting in identification of drill-ready targets.
Blaze will pay an option fee of $20,000 and spend $100,000 within nine months. The company is planning an initial 50 aircore holes over about 3,000m.
The company says the licence areas, over which it has the option to take a 100% interest, contain “significant” large but untested gold soil anomalies.
Blaze plans to drill test these in the coming months. A program of works has been lodged and expects to receive all necessary approvals within a month.
The company noted that numerous of the gold anomalies coincide with prominent breaks in the magnetics of the area and “may be related to basement mineralised structures”.
Gaining a substantial footprint in another greenstone belt
Technical director Simon Coxhell said Blaze saw the licence areas as providing “a number of excellent, high quality, and drill-ready targets”.
It is also an opportunity for the company to gain a substantial footprint in the highly prospective, underexplored area located on the Meekatharra-Wydgee greenstone belt.
Blaze is already exploring for gold in the Kirkalocka, Warriedar and Leonora greenstone belts.
Exploration in 2019 focused on detailed review and exploration of its Kirkalocka and Leonora projects incorporating mapping, soil and auger geochemistry and drilling at Leonora.
The company said in its most recent quarterly report that results have outlined a number of areas considered prospective for further gold exploration work and in particular the new Leonora tenements hold scope for the delineation of gold anomalies.