Navarre Minerals (ASX: NML) reports the imposition of Stage 3 COVID-19 restrictions on regional Victoria will still allow the company to continue activities under strict health and safety protocols.
The Stage 3 restrictions came into effect on 3 August and are expected to last for six weeks.
Navarre said it enters the restriction period in a strong financial position with about $13 million cash on hand and is planning to have four drilling rigs in operation by October.
Drilling is to continue at Resolution Lode, within the Stawell Corridor gold project, where a 9,000m program is under way. Drilling is proceeding on a 24-hour, seven-days-a-week basis.
The Stawell Corridor is an extension of a corridor of rocks that host the historical Stawell (5 million ounce) and Ararat (1Moz) goldfields.
In addition, geophysics surveys are to begin shortly at the recently acquired Jubilee gold project ahead of a drilling program scheduled for the December quarter.
Navarre is continuing to monitor advice from the relevant Victorian government departments and the Victorian branch of the Minerals Council of Australia in regard to mandated restrictions and their impact on mineral exploration.
Navarre managing director Geoff McDermott has made it clear the company is committed to reducing the risk of transmission of COVID-19 to its staff, its contractors and the communities in which it operates.
“The company continues to take the steps [necessary] to protect the wellbeing of those who work with us and for us,” he said.
Navarre continues to provide employment and investment in regional Victoria
Mr McDermott added the company is well equipped to adapt its operations to continue safely to explore through the period of restrictions — and to continue to provide ongoing employment and investment in regional Victoria.
Meanwhile, the drilling at Resolution Lode continues scoping the depth potential of the 1.6km-long discovery to about 300m from surface.
Navarre said the priority drilling area is the down-plunge extensions of the south shoot where a second “significant” zone of gold mineralisation has been identified 50m west of the main gold zone.
Last month, the company reported an intersection there of 10.3m at 2.2 grams per tonne gold, within which there was a 1m section assaying at 20.8g/t gold.
Preliminary work underway ahead of drilling at Jubilee
In June, Navarre acquired a 100% interest in the Jubilee gold project, 25km from Ballarat.
The 122sq km licence area includes the historic Jubilee gold mine (operated 1887-1913) that produced 130,000oz of gold at a recovered grade of 12g/t from a single reef.
Since the mine closed in 1913, there have been no reported modern attempts at sustained exploration. No drilling has been done.
Navarre is currently compiling historical reports and undertaking surface geological mapping at Jubilee ahead of the fourth quarter drilling program.
At the Tandarra joint venture with Catalyst Metals (ASX: CYL), detailed core logging and sampling continues. Catalyst, the joint venture manager with 51%, is targeting mineralisation below the main Tomorrow structure, northwest of Bendigo.