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Caspin Resources Secures Option over 80% of Promising Weethalle Gold Project in NSW

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By Colin Hay - 
Caspin Resources ASX CPN Option 80% Promising Weethalle Gold Project NSW
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Caspin Resources (ASX: CPN) is looking to hit the ground running, after executing an exclusivity agreement to acquire 80% of the Weethalle gold project in New South Wales.

The company is preparing to test coincident induced polarisation (IP) and geochemical anomalies as soon as possible as it waits on rig availability.

The first round of testing will feature approximately 1,200 metres of reverse circulation drilling over 10 days, commencing over the next few weeks.

Aggressive Exploration Plans

The company announced the aggressive exploration plans after revealing it had entered into an exclusivity option agreement to acquire a majority interest in the project via an upfront cost of just $50,000 and one million Caspin shares.

Managing director Greg Miles said that, with Weethalle located just 30km north of the company’s Bygoo tin project, the proposed addition poses as a significant gold exploration opportunity.

“We are delighted to have secured this option to earn into the Weethalle gold project, one of the most exciting greenfield gold projects in the country,” Mr Miles said.

“While Caspin’s priority focus remains on Bygoo, the addition of the Weethalle project provides our shareholders with immediate exposure to record-high gold prices.”

Historical Gold Discovery

The project consists of three granted exploration leases near the township of Weethalle in the prolific Central Lachlan Fold Belt region, and its gold history included commercial mining between approximately 1916 and 1932.

However, despite its location near significant historical gold production at West Wyalong and a very large gold endowment at Lake Cowal, Caspin says the project had not seen any meaningful exploration until the recent work by vendor Weethalle Gold.

That work identified the undrilled 2,000m long IP geophysical target, approximately 200m below surface with a similar coincident intrusion-related gold system geochemical signature to the 10-million-ounce Hemi discovery in Western Australia

Northern Star Resources (ASX: NST) now owns Hemi after its takeover of DeGrey Mining earlier this year.