Kairos Minerals hots up conglomerate gold exploration in the Pilbara

Kairos Minerals conglomerate gold exploration Pilbara
Conglomerate outcrops within the northern portion of Kairos Minerals' E47/3522 tenement.

Kairos Minerals (ASX: KAI) reported this morning it had stepped up conglomerate gold exploration at its Pilbara tenements, which are near to recent gold discoveries reported in the area.

The company engaged geologist George Merhi to oversee its exploration efforts, which includes a new high priority target at the Croydon prospect.

Croydon is in proximity to De Grey Mining’s (ASX: DEG) Loudens Path, and Novo (TSX: NVO) and Artemis Resources’ (ASX: ARV) Purdy’s Reward deposits where hundreds of gold nuggets have been uncovered.

The expanded exploration program includes new remoter targets within Croydon. Due to the isolation of the new targets, a helicopter will be used to enable access for detailed mapping, rock chip sampling and metal detecting.

Kairos Minerals Pilbara region geology map
Prospective regional geology and tenure of the Pilbara region.

Kairos Minerals holds 1,158 square kilometres in Pilbara tenements and has identified about 100km of strike in the lower Fortescue Group rocks which is known to host the other conglomerate gold deposits in the region.

As a result of its proximity to recent gold discoveries, Kairos Minerals’ stock price has sky-rocketed more than 250% since mid-September.

Gold looking richer in wake of royalty hike block

The news keeps on getting better for the Pilbara explorers, with the recently proposed gold royalty hike blocked in the WA state parliament last week, leaving gold explorers and miners uttering a collective sigh of relief.

In its 2017-2018, budget the WA Government had proposed to slug gold miners with a 50% royalty hike to 3.75% equating to about $20 an ounce once the gold price hit $1,200 an ounce and over.

There was a huge backlash that left a few investors jittery but last week the proposal failed to get through.

Chamber of Minerals and Energy chief executive officer Reg Howard-Smith said the decision to block the royalty hike “was a win for common sense”.

Lorna has more than 10 years' experience as a finance journalist and editor. She has written for numerous industry publications reporting on various sectors, including: resources, energy, construction, biotech, pharma, science and technology, agriculture, and chemicals. Specialising in resources, Lorna has also covered a myriad of small and large cap ASX and dual-listed stocks.