Under the Balagundi Joint Venture Agreement, the Company has the right to earn a 75% interest in the Balagundi Project by funding exploration expenditure of $1,000,000 over a 5 year period.
Several historic gold mines are located on and around the project area, including the high-grade Mount Bellew underground gold mine.
This project has been privately held since 1986 and has significant strike extensive historical gold workings highlighting the potential for a large gold system to be discovered. The Balagundi Project has only been partially drill tested, with significant potential remaining for the discovery of gold resources.
Significant drilling intersections include:
Historical gold workings expose several gold-bearing quartz vein systems extending through the Balagundi Project area over strike lengths of several hundred metres. Four arsenic-gold trends evident in soil geochemistry highlight the main mineralised trends in the project area. The project comprises a large-scale structural duplex which has been intruded by gabbroic sills, known to be significant hosts for gold mineralisation in the Eastern Goldfields.
Balagundi is located in the heart of the Kalgoorlie mining district and within haulage distance of many operating or idle processing facilities. Balagundi is also well serviced by bituminised road, power and water infrastructure, potentially reducing start-up capital and accelerating development timeframes.