Haranga Resources acquires advanced Lincoln project in California’s Mother Lode gold belt

Haranga Resources (ASX: HAR) will take control of the richest section of California’s famous Mother Lode gold belt following an agreement with Seduli Holdings (Australia) to acquire its advanced Lincoln gold project.

Mother Lode stretches for 190 kilometres and contains a 6km-wide zone of gold-bearing quartz veins, along with mineralised schist and greenstone, at the western foothills of the Sierra Nevada mountain range.

The Lincoln project comprises an indicated and inferred resource of 286,000 ounces grading 9.3 grams per tonne gold and includes 189,000oz at 9.9g/t indicated and inferred at the Lincoln and Comet deposits (located 200m apart), and 97,000oz at 8.3g/t gold inferred at the Medean deposit.

Historic ounces

Mineralisation continues between Lincoln and Comet across 38 individual gold-bearing quartz-ankerite veins but Haranga believes it is insufficiently defined and represents an underexplored zone of interest.

Historic production from 13 leases included in the Lincoln acquisition totalled approximately 3.4 million ounces gold and followed the drilling of 336 holes for 34,771m in the upper part of the Mother Lode structure.

The Jackson-Plymouth segment housing the Lincoln project produced about half of the gold.

Haranga confirmed there were no historic holes exceeding 150 vertical metres below the surface and said the deposit appeared to be open beyond this depth.

Capital works

Over $90 million has been spent to date on capital works at Lincoln.

These include the construction of an 880m underground decline and 900m of level development, a fully equipped processing plant and underground infrastructure and administration offices and workshops.

All major regulatory approvals have been secured for the mine, allowing for the output of a minimum 315,000 tonnes of ore per year.

Haranga expects the established project site to provide it with a fast track to production.

Golden opportunity

Haranga managing director Peter Batten said the company had a golden opportunity to develop an advanced project in a Tier 1 province.

“The Mother Lode is famous for its high grades and for being at the centre of the famous California gold rush,” he said.

“This project includes advanced infrastructure and we have begun preparations that will allow us to hit the ground running and commence drilling as soon as practicable after the acquisition is completed.”

Project potential

Haranga sees mines along strike of Lincoln as reflective of the project’s potential, with many extending more than 1,000m below surface and historic production rates of well over 1,000oz of gold per vertical metre.

“Extensions to known deposits [at Lincoln] are possible along strike and down dip, not to mention the possibility of repetitions at depth and the potential to extend resources at other mines within the licence area,” Mr Batten said.

“We have a granted conditional use permit, which will be an advantage when seeking opportunities to expand our footprint along areas of the Mother Lode where there has been limited or no modern exploration.”