Battery Minerals (ASX: BAT) has identified a number of targets in a review of historical data on its recently-acquired tenement in Western Victoria.
The new tenement, Exploration Licence EL-6871, is located next to Stavely Minerals’Thursday’s Gossan copper-gold discovery and hosts historical gold workings at the Cosmopolitan, East Londonderry and Moyston prospects.
The company believes these are strong walk-up targets for follow-up soil sampling, mapping and drill testing. In addition, Battery Minerals will also focus on two key prospective areas at Kent Road and Frying Pan. Subject to government approvals, Battery Minerals intends to undertake more active exploration and drilling in the March 2021 Quarter.
EL6871’s Eastern boundary is located less than 10km west of the Stawell Gold Mine. It has approximately 70km of strike and an 800 sq, km footprint adjacent to a major crustal-scale terrain boundary.
The EL6871 area has been subject to little or no exploration since 1997.
Since this time, there have been four major developments which Battery Minerals will look to take advantage from as it advances exploration on this project:
- New Geology –. The Geological Survey of Victoria is the pre-eminent expert on the geology of the Stavely Arc which hosts EL6871. In recent years, through the work of the Geological Survey, the Victorian Government has made significant investments in historical data compilation, field mapping, university research, drilling and geophysical surveys. The result is a major improvement in the understanding of factors that produce copper and gold deposits in the region. The survey has also highlighted a number of areas considered prospective for gold and copper located on EL6871.
- New Discoveries – There have been significant mineral discoveries made on adjoining tenements which have re-rated the profile of the area to support major discoveries. In addition, nearby mining operations are generating strong returns for shareholders. In recognising the revised geological model and improved commodity prices, significant exploration funds have been raised and deployed in exploration in the area and have typically delivered share price appreciation.
- Exploration technology – There have been major advances in exploration technology and more specifically low-impact exploration using soil geochemistry, geophysics, high definition Landsat imagery and Lidar.
- Commodity Prices – Copper and gold prices are significantly higher. Since 1997, the US-dollar gold price has increased from US$280 per ounce to $1,880 per ounce. Over this time, the copper price has risen from US80c per pound to US$3 per pound. In addition, the global average grades of copper and gold ores being mined profitably have fallen significantly.
Non-Executive Chairman, David Flanagan, said collectively, the two-decade absence of exploration activity in an area now considered highly prospective for both copper and gold will present the company with the opportunity to use all new information and technology to advance highly effective exploration in the current economic climate.