Dreadnought Resources pegs up historical gold ground next to Mangaroon REE project
Dreadnought believes the new tenements are prospective for gold, base metals and REE.
Dreadnought Resources (ASX: DRE) has pegged up five more tenements next to its Mangaroon rare earth elements (REE) project in Western Australia’s Gascoyne, with the new land also hosting 10 historical gold mines.
The five new tenements cover 77 square kilometres and are between the REE project and Dreadnought’s other ground where Canada-based First Quantum Minerals (TSX: FM) is earning into the nickel-copper-platinum group element (PGE) mineralisation.
Dreadnought managing director Dean Tuck said once the acquisition is complete the new tenements will close “a significant gap” in its land position at Mangaroon.
The tenements host the former high-grade Star of Mangaroon, Pritchard Well and Twin Peaks gold mines.
Historical output from Star of Mangaroon was 7,500 ounces of gold at an average grade of 34.8 grams per tonne, while Two Peaks produced 5,000oz gold at 7.9g/t.
Dreadnought noted the new tenements contain shear zones with numerous mineralised 1-10m wide and 20-200m long outcrops with high-grade gold that remains underexplored and undrilled.
“The Star of Mangaroon and associated ground was a key reason for Dreadnought taking a dominant position in the region and we see these tenements as important to our short and long-term strategy for the area,” Mr Tuck explained.
“We will be including existing and future targets on the tenements into our existing work programs in the region,” he added.
Mangaroon project
With the new tenements, Dreadnought will control 5,300sq km in the Gascoyne region.
The Star of Mangaroon mine is the largest historical producing gold mine in the area – operating between 1960 and 1983.
Most of the gold was extracted underground from a maximum depth of 90m below the surface.
Two Peaks is only 9km northwest of Start of Mangaroon and was a small open cut mine.
As well as gold, the new tenements are believed prospective for nickel-copper- PGE, other base metals and REE.
At its existing Mangaroon tenements that are not subject to the First Quantum farm-in, Dreadnought is focused on REE mineralisation.
The company plans to release a maiden JORC resource in the December quarter for the Yin discovery within the ground.