White Cliff Share Price Climbs with Project in Fabled Cue Goldfields
Microcap mineral explorer White Cliff Minerals Ltd [ASX:WCN] has watched its share price spike today, thanks to results uncovered at its newly acquired Reedy South Gold Project in WA.
WCN attained the project in mid-September from two private exploration companies.
Reedy South is located in the Cue Goldfields, one of Australia’s premier mining jurisdictions.
At the time of writing, the WCN share price is up 34.48%, trading at 3.9 cents per share.
Excitement builds over maiden resource estimate
WCN acquired the Reedy South tenements last month for a consideration of $850,000 — not a bad price for 156kms2 worth of tenements that at one point was managed by St Barbara Ltd [ASX:SBM].
Today we get our first real glimpse into the potential of the project.
And judging by the share price, investors seem excited.
Previous drilling in 2010 at the King Cole prospect on Reedy South Gold include:
- 20m at 4.13 grams of gold per tonne (g/t) from 2m, including 3m at 11.33 g/t from 5m
- 4m at 9.51 g/t from 32m and 2m at 11.75 g/t from 38m
- 2m at 2.70 g/t from 4m
- 6m at 2.68 g/t from 15m
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In addition, samples taken as part of due diligence for maiden resource estimate near the historical shaft and trench line have been assayed with results including:
- 5 g/t gold from rock chip taken within trench
- 98 g/t gold from waste near Pegasus shaft
Source: White Cliff Minerals
Technical director Ed Mead commented:
‘The results from this small drilling program at King Cole are pleasing for two reasons: the grade is always great to see, but as importantly, the drilling data provides further evidence that the mineralisation is near vertical at the King Cole and Pegasus prospects.’
Source: White Cliff Minerals
As you can see in the top figure, the Cue region around where Reedy South is situated is well endowed in with several large gold deposits.
WCN said it plans to run a 2,000m drilling program targeting depth extensions of known, high-grade mineralisation.
And with the previously unreported high-grade drilling intercepts from the King Cole prospect, WCN should have some nice targets to go after.
WCN have not yet given a timeframe as to when we can expect their maiden resource estimate however, they plan to deliver it in the ‘near-term’.
Which could be a bold move, considering it can take years for veteran explorers and miners to produce a resource estimate.
Though WCN might be looking to capitalise on a larger macroeconomic trend in Aussie gold.
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For The Daily Reckoning Australia