Treasure Island drilling confirms ‘new gold camp’
Focus Minerals Limited (“Focus”, “FML”, “Company”) has released the first drill results from the inaugural diamond drill program at Treasure Island,Lake Cowan, located ~50km southeast of Kambalda, WA. A total of 23 diamond holes for 3,165m have been completed to date with the first round of results confirming that the high-grade narrow mineralised veins mapped on the island extend at depth under the salt lake. Fine visible gold is evident in most of the veins intersected with some of the veins showing increased width at depth. Focus believes that the style of mineralisation encountered at Treasure Island is very similar to the St Ives goldfield (located ~35km north-northeast along strike) and confirms the discovery of a new ‘potentially significant’ gold camp. Diamond drilling is ongoing and an air-core drill program consisting of over 10,000m along 6km strike now commenced.
Good address with minimal previous exploration
The Lake Cowan project sits on the southern extension of the Boulder-Lefroy Fault Zone, which hosts numerous high-grade gold and nickel deposits, including the Kalgoorlie Super Pit (+10Moz Au) and St Ives gold camp (~7Moz Au). Previous exploration over the area has been limited, due mostly to the salt lake making access to the island difficult. Focus is using specialised drill rigs to test targets throughout the project area.
Central ‘Black Dog’ and Southern ‘Blind Pew’ prospects drilled
Drilling to date has been confined to less than 1km of the prospective 6km strike length of favourable geology to be systematically tested. The Central ‘Black Dog’ prospect was the first drilled with some of the better intercepts including 2.54m @ 10.82g/t Au from 49.5m; 0.90m @ 3.89g/t Au from 14.1m; 0.43 @ 22.6g/t Au from 20.6m; 0.38m @ 13.9g/t Au from 42.3m; and 0.30m @ 10.82g/t Au from 41.0m. Mineralisation remains open in all directions (and at depth). The Company has also intersected a lamprophyre with this type of ultra-mafic intrusive commonly associated with high-grade gold lodes within Archaean terranes, providing further encouragement that FML is onto a significant mineralised system.
The Southern ‘Blind Pew’ prospect has returned the widest mineralised intercept to date with 3.78m @ 6.3g/t Au from 78.7m; with other interesting results including 1.0m @ 6.56g/t Au from 61.0m; 1.0m @ 3.64g/t Au from 88.0m; 0.57m @ 20.5g/t Au from 162.4m; 0.30m @ 37.9g/t Au from 11.95m; and 0.30m @ 13.4g/t Au from 145.2m. Like Black Dog mineralisation remains open in all directions (and at depth). Note down-hole widths are close to true widths.
Exciting early-stage exploration unlocking potential
The Lake Cowan project remains an exciting early-stage exploration play that has the potential to yield a number of significant-sized gold deposits. Diamond drilling is on-going, with air-core drilling commenced to build the important geochemical map over the area. We expect more targets to be generated which will be tested during the ongoing drilling programs.Focus remains hedge and debt free. With increasing gold production in an increasing gold price environment, accelerated near-mine and “grass-roots”exploration we continue to recommend FML as Buy with a valuation of 12cps (post acquisition of Crescent Gold).
