Trigg Minerals starts work on gold-base metals projects, suspends potash plans
In the expectation that shareholders will later this week approve the purchase, Trigg Minerals (ASX: TMG) has begun work at its newly acquired Drummond gold and base metals project in Queensland.
At the same time, Trigg has suspended all activity, apart from new process technology research, on its sulphate of potash (SOP) projects in Western Australia.
The latter decision was taken in light of troubles at other such projects which has led to the delisting of Salt Lake Potash and the suspension of Kalium Lakes (ASX: KLL) while it is in the hands of administrators.
“Trigg believes these processing challenges have undermined the value of the SOP industry broadly and SOP assets specifically,” the company notes.
Reviewing Drummond data
Trigg, expecting shareholders at the annual meeting this coming Friday to approve Drummond’s purchase, has engaged Brisbane-based Global Ore Discovery to review historical data in preparation for a field campaign.
This new venture lies 150km south of Townsville in the Drummond Basin.
Some $6.2 million has already been spent on the project, most of that by Evolution Mining (ASX: EVN)
The company has already completed a $576,000 placement and its $1 million rights issue is scheduled to close this Friday.
It had been the intention of Trigg Mining as recently as last month to use the new capital to both define drill targets at Drummond and, in parallel, to complete what it describes as “innovative” pilot test work at its Lake Throssell sulphate of potash project in Western Australia.
Exploring for epithermal gold, silver
At Drummond, Trigg will be exploring for epithermal and intrusion-related gold and silver at existing advanced prospects as well as assessing greenfield potential.
The project is located near several major gold discoveries and producers.
These deposits include Pajingo (3.6 million ounces), Wirralie (300,000oz) and Mount Colon (600,000oz).
At Pajingo, Evolution Mining produces up to 230,000oz per annum at a gold head grade of between 9.0 grams per tonne and 15g/t.
Historic exploration within the Drummond tenements has defined gold mineralisation at the Limey, Breccia Hill, Quartz Ridge and Bunyip prospects, while at the Charlies prospect there was historic mining of silver, gold and base metals.
Looking at alternatives for Lake Throssell
While work has been suspended at the former Lake Throssell SOP flagship project, Trigg has engaged a geological team to assess the potential for extracting other minerals at its three Western Australian projects.
This will include a review of drill chips obtained by Trigg or held by the Geological Survey of Western Australia.
While this work has begun at Lake Throssell, it will include the other two SOP projects, Lake Rason and Lake Yeo.