Cashed-up gold project hunter Latitude Consolidated (ASX: LCD) has potentially added a third Australian property to its portfolio with the taking of an option over the Skye project located in South Australia’s Gawler Craton.
Latitude, whose cash balance was $3.29 million at 31 March, has been on the search for greenfield gold targets.
Skye was drilled in 2008 by Tasman Resources (ASX: TAS) when a limited work program identified several areas of bedrock mineralisation.
This acquisition adds to a portfolio that already includes two Western Australian projects, the greenfield Gekko North on the perimeter of the eastern goldfields and Circle Valley, which lies undercover just south of Norseman.
If the option is exercised, the private vendor (Resource Holdings Pty Ltd) will receive $25,000 and 4.41 million Latitude shares, with staged further issues based on the project’s advancement.
Latitude said the Skye ground, located north of Tarcoola, is an excellent exploration address with multiple greenfield targets close to several large-scale gold systems in “a proven million-ounce gold terrain”.
Multiple prospects with near-surface gold mineralisation
Skye is located close to the Aurora Tank “Goshawk Zone” discovery and the Golf Bore deposit, which is within 2km of the boundary with Latitude’s new ground.
Aurora Tank earlier this year returned what the project owner Marmota (ASX: MEU) describes as “outstanding high-grade” intersections, including 1m at 74 grams per tonne of gold hit at 64m below surface.
Marmota today announced today it intends to begin a new drilling program of about 85 holes in mid-July with a maximum depth of 150m.
Latitude described Skye as including multiple prospects where near-surface gold mineralisation has been identified by previous shallow drilling.
Previous drilling reported several assays, one intersecting 24m at 0.8g/t gold from 40m, including 6m at 2.9g/t and 1m at 8.3g/t gold.
Latitude said the deal with vendors, which includes a $25,000 option fee, ensures it retains financial flexibility to pursue additional project opportunities.
Latitude chairman Tim Moore said initial reviews by the company’s geologists suggest the potential for some geological consistencies between Skye and the Aurora Tank and Gold Bore projects.
“The Skye gold project gives Latitude an exciting entry point into a proven and low-risk gold mining jurisdiction without having to outlay considerable upfront capital,” he said.
Plans are being made to begin work in the September quarter.
“Latitude remains committed to reviewing additional project acquisition opportunities,” Mr Moore added.