- 20-hole drilling programme commences this weekend
- Discovers extension to high-grade vein system on Island
Gold producer Focus Minerals (ASX:FML) is pleased to advise that it has agreed to acquire the remaining 25 per cent of the Treasure Island Gold Project in WA’s Eastern Goldfields, giving it 100 per cent ownership of the highly prospective tenement.
As consideration, Focus will grant to the vendors, Semro Pty Ltd, five million fully paid Focus shares and $2 million in cash payable in $80,000 instalments over 25 months.
Semro has also granted Focus an option to acquire an adjoining tenement totalling some 110sqkm immediately to the east.
Under the terms of the option, Focus will grant Semro one million fully paid Focus shares and on exercising the option it will issue Semro a further 15 million Focus options in return for 100 per cent ownership of the adjoining tenement. The options will be issued in three tranches, with the first exercisable at 10 cents within two years, the second at 15 cents within three years and the third at 20 cents within four years.
The Treasure Island Gold Project is situated at Lake Cowan, located 35km south-south east along strike from the major gold camp of Kambalda-St Ives (see Figure 1).
Drilling at Treasure Island is set to start this weekend, with a 2500m program of up to 20 holes designed to target the Black Dog and Blind Pew vein systems, which are believed to extend under the lake (see Figure 2).
Detailed rock chip sampling from the Black Dog vein system on the eastern edge of the island has returned grades including 58.9gpt, 48.4gpt, 41.3gpt and 17.9gpt. The samples were collected along a 200m strike length and over a total vein array width of 30m (see ASX announcement dated November 25, 2010).
In recent weeks further mapping by Focus has discovered an extension to the Black Dog vein system which was previously obscured from view (see Figures 3 & 4). The latest rock chip sampling on the system has returned yet further high-grade results including 53.7gpt, 34.8gpt and 22.8gpt (see Table 1).