A regional mapping review by EganStreet Resources (ASX: EGA) has uncovered new exploration targets, expanding the prospective shears by 4 kilometres at the company’s flagship Rothsay gold project, located 300km north-east of Perth in Western Australia’s midwest.
The regional review has resulted in total indicated and inferred resource inventory of 1.54 million tonnes at 9.2 grams per tonne gold for 454,000oz of contained gold.
Since purchasing the mine in 2011, EganStreet has focused its assessment at Rothsay including the main area and tenements surrounding Woodley’s Reserve.
The regional review discovered a series of priority regional targets within the Karara Shear, immediately north of the project’s existing high-grade resources. It also identified a line of workings located immediately to the north of the tailings storage facility, which has previously been mapped but not drilled.
“EganStreet has been conducting an extensive mapping review of our 100%-owned exploration tenements at Rothsay,” EganStreet managing director Marc Ducler said.
“The results indicate the geological potential extends significantly beyond our current resource.”
The Karara Shear possesses several similarities to the Woodley’s Shear, which hosts the main Rothsay mineral resource.
Both shears comprise mafic/ultramafic host rocks, are coincident with linear magnetic highs (as are the other identified mineralised shears at Rothsay).
Where gold mineralisation has been identified, it is contained by quartz veins with a selvedge of intense tremolite alteration.
EganStreet Resources will soon lodge relevant applications to start exploration across the Karara Shear, and the company is developing a target inventory across the entire land-holding.
“We continue to expand our geological understanding of the Rothsay gold field, without taking our eye off the development proposition before us to redevelop Rothsay into a producing gold mine,” Mr Ducler said.
“The regional targeting exercise has expanded the strike of identified prospective shears at Rothay from around 14km to well over 18km,” Mr Ducler said
Project finance discussions for development of the Rothsay gold project continue to advance and EganStreet is engaged with the relevant government departments for remaining approvals.
A mining proposal, mining closure plan, native vegetation clearing permit, works approval and licence application are all under assessment. All major construction contracts have been let or are in the final stages of procurement.
EganStreet anticipates construction to begin following project financing and once all necessary approvals have been received.