Kairos Minerals (ASX: KAI) has applied for two new exploration licences located adjacent to already granted ground, doubling the size of its key Croydon project.
The two new applications cover 389.8sq km, making the Croydon project near double in ground area to 773.6sq km.
The areas now covered by these latest applications include the south-eastern edge of the Sisters Supersuit intrusions, which are in contact with the granite-greenstones units of the East Pilbara terrane.
They are prospective for both intrusive-related and structural hosted mineralisation.
The company said the applications further strengthens Kairos’ exploration pipeline across its overall Pilbara gold ground.
Field season gearing up
Executive chairman Terry Topping said that, as the 2020 field season continues to gear up, the company has taken the opportunity to expand the Croydon project by securing ground immediately southeast of the existing granted land holding.
Kairos has been encouraged by the large Hemi gold discovery in the same region by De Grey Mining (ASX: DEG).
Investor interest in gold exploration in the Pilbara is said to be at an all-time high thanks to the rapidly emerging high-grade discovery at De Grey Mining’s Hemi prospect.
“Evidence from the recent Hemi gold discovery suggests that the margins of these large intrusive features where they intrude granites [are] now highly prospective for new gold discoveries,” Mr Topping said.
The company’s next steps include receiving results from aeromagnetic surveys of the Pilbara project, building tracks access to and drilling at the Mt York and Fuego prospects and soil sampling.
Mt York was mined between 1994 and 1998 when there was an average gold price of US$350/oz. Some 125,493oz were extracted at an average grade of 1.85g/t.
The Pilbara project area is about 100km south of Port Hedland and, since acquiring it in early 2016, Kairos has established a JORC indicated and inferred resource of 20.93 million tonnes at an average 1.3 grams per tonne (g/t) of gold, for a contained 873,000oz.
The ground includes the old Lynas Find mine which, between 1994 and 1998, produced more than 125,000oz.
Kairos regards its 1,236 sq km project as being in the “epicentre” of the present-day Pilbara gold rush.