Paterson locks in drilling plan for ‘highly prospective’ gold project

27 May 2021 07:15
Close up lump of gold mine on wooden table

Junior gold explorer Paterson Resources has locked in the third quarter of calendar 2021 for an extensive drilling program at its Grace project in Western Australia, joining some of the world’s largest miners investing in the Paterson Province region.

In its first update in almost a month, Paterson today said it was “well advanced” for drilling at Grace in the third quarter, with a key heritage survey to be completed in June and subsequent clearing in July. 

“The drilling will target numerous high impact targets with similarities to major deposits nearby in the Paterson Province including Telfer and Haverion,” the company said. 

The update comes as 
the gold price enjoys a period of renewed momentum, rising to a more than four-month high of almost US$1900, which broker UBS put down to “expectations that the US Federal Reserve will keep monetary policy accommodative”. It follows concerns in the market a pickup in inflation as the US economy roars back to life would force the US central bank to hike rates sooner than expected, but Fed officials have recently hosed down these expectations.

Perth-based Paterson holds a suite of gold exploration projects in WA in areas attracting the interest of some big players, the company noting exploration in the “highly prospective” Paterson Province was on the rise following recent discoveries by majors Rio Tinto and Newcrest Mining.

Paterson’s Grace project in the region is about 25km southeast of Newcrest’s Telfer gold mine in the Great Sandy Desert, with historic drilling showing an inferred mineral resource of 1.59 million tonnes, at 1.35 grams per tonne, of gold for 69,000 ounces.

“The project is highly prospective due to both the area having a disrupted exploration history and the similarities to other projects surrendered by Newcrest in the Telfer region at a time in the early 2000’s when there was a hiatus in production from Telfer before recommencing again in 2004 as a bulk mining operation,” Patersons’ website states.

In the update today, the company added that it has finalised a 2500m drilling program for Hackney’s Creek after soil sampling to identify additional targets nearby finishes up before the end of June.

Paterson added that it was “well funded” to complete its extensive drilling programs, the company’s recent quarterly update showing $2.7m in cash at the end of March.

Its ASX-listed shares last traded at 4.5c

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