Fosterville-Toolleen Gold Project in the Lachlan Fold Belt of Eastern Australia
The Project includes the 26 sq km Exploration Licence EL6001, with reported production of 7,000 tonnes @ 10 g/t Au from the top 60 metres and the discovery of an 88 gm nugget found on surface. The drill-ready property is the closest one (12 km) to Kirkland Lake Gold’s (NYSE: KL) Fosterville Mine – the lowest-cost producer worldwide at $315/oz and 34.3 g/t, which has past and present reserves of 9 Moz* gold. The project includes an open cut mine, free gold on the surface, substantial geological work and evidence of quartz. Other explorers around our project include: Fosterville South Exploration (FSX-V), Nubian Resources (NBR-V), Catalyst Metals (CYL-AX), and Petratherm Limited (PTR-AX).
The Project area, which is adjacent to the recently lifted exploration moratorium area, is located within the Bendigo-Ballarat Zone of the Palaeozoic Lachlan Fold Belt of eastern Australia and the greenstone corridor running north south. The gravity survey shows highly prospective areas. The experience at Fosterville and Bendigo suggests that the shallow gold mineralisation may be indicative of high-grade shoots that can be mined by underground methods. Several prospectors have been on the EL tenement ground and surrounding tenements and have recovered surface gold. The Project is situated on freehold land and has no native title claim.
Dr. Rodney Boucher, a pre-eminent Geologist with over 25 years experience in central Victoria geology will be assisting in the future work on the Project.
* Fosterville Mine’s past and present resources of 9Moz Au as reported by Earth Resources, Victoria State Government
Local Geology Prospective for Gold Deposits
The Fosterville-Toolleen Gold Zone was mined underground until 1957 with a reported 7,000 tonnes @ 10g/t Au being produced from the top 60 metres. Willman (2007) showed that the best mineralisation at both Bendigo and Castlemaine was found a few kilometres into the hanging walls of major faults thus, these areas of shallow cover are both prospective and easy to explore. PGM had previously discovered the Four Eagles project, now operated by Catalyst Metals in the hanging wall in a similar position. The Mt William Fault transects the tenement in a north-west south-east direction.
The Lachlan fold belt has been subdivided into eight zones based on age, rock types and structural history (Grey, 1988). The Permian glaciation is evidenced by small subsurface and locally outcropping occurrences of glacigene sediments that provide evidence of the glaciation. This occurred in eastern Australia during the lower Permian affecting the Toolleen area. Fluvio-glacial and glacial sediments crop out poorly and tend to be preserved in down faulted blocks or have been reworked into younger deposits. EL006001 is east of the Mt William fault.
Fluvial sediments have reworked Palaeozoic reef quartz and gold along with Permian glacial clasts into ancient rivers that criss-cross the tenement during the Cenozoic. Fosterville is unique in the region as it represents a large North striking West dipping fault reef up to 20 metres wide and eight kilometres long hosting rich gold reefs with finely disseminated gold. . Fosterville was attractive due to the arsenopyrite-hosted, fine disseminated folding (even though it wasn’t unique with similar mineralisation at Nagambie & Bailieston and even in small parts of Bendigo and Daylesford), but has become famous for the abundant nuggetty gold.
At the deposit scale, high-angle secondary reverse faults and dilational cross structures served as conduits for the mineralising fluids. In addition to the fault-controlled mineralisation, where accommodation occurs at the apexes of tight fold hinges, mineralisation can occur as stacked ‘saddle’ or ‘trough’ reefs as commonly seen within the Bendigo area.
Fosterville-Toolleen Drill Program Commenced
AIS Resources conducted a drilling program in November and with land access permits signed. Aircore/RC Drilling started on the western side of the exploration licence EL006001 with an initial target 20 drill holes, with an overall 42-hole program planned. The drill hole depth will be an average of 65 meters. The main gravity edge running north south has an associated arsenic in soil response which broadens out significantly over a deeper strong gravity anomaly in the northern part of the survey.
The company started the second drill program with the new data that includes the drill hole, gravity and soils information, as well as advanced models of the structural geology, soil-based gold pathfinders and relationship between the Permian lithology delineated. The Permian rocks where gold nuggets were previously found overlays the Ordivician sediments where historically gold has been found in the local area at Kirkland Lakes’s Fosterville Gold Mine whose high grade Swan Zone is located only 12 kms from our project’s western boundary.
Fosterville-Toolleen Ultratrace Soil Program
The company’s Ultratrace soils analysis program results at the Fosterville-Toolleen project have reconfirmed the prospectivity of the drill targets. Analysis was conducted for gold, arsenic, copper, lead and eight other elements and they were all present along the litho-boundaries and target zones to be drilled. This means our drill program to commence in early 2022 will aim to define the presence of gold in the Ordovician rocks. These spatially associated multielement results suggest that the source is potentially related to primary gold occurrence in the oldest Ordovician rocks where the minerals form rather than the younger secondary deposits. The presence of paleochannel gold deposits is also a real possibility, which will be incorporated into the exploration program.