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Dundas Minerals Secure Two Kalgoorlie Gold Projects

30 August 2023 11:16
ASX: DUN

Dundas Minerals (ASX:DUN) is set to embark on a significant gold exploration phase by acquiring two promising projects, Windanya and the Baden-Powell Project, located in Western Australia’s Kalgoorlie region, with plans for imminent commencement of exploration encompassing 13 tenements and two Mining Licenses.

Exploration Endeavours

In June, the Company unveiled noteworthy assay outcomes for rare earth elements (REEs) from its Matilda South drilling, as well as outcomes from its 2022 exploration of Jumbuk and Kokoda, and it intends to intensify exploration activities in its eponymous Project in Western Australia.

With the procurement of the gold Projects in Kalgoorlie, Dundas is primed to concentrate on its gold assets, initiating the initial exploration phase at these fresh tenements in early September.

Anticipated to encompass 1,500 samples, the program will entail soil and auger sampling initiatives across grids spanning numerous targets, with the goal of investigating potential extensions beneath cover to regions acknowledged for gold mineralisation or historical operations, in addition to identifying anomalies linked with diverse minerals.

The Company highlights the presence of promising laterite nickel deposits within both projects, conveniently situated near the Scotia Dam nickel/cobalt deposit, while noting the scarce exploration devoted to these deposit types within the project areas. The entirety of phase 1 activities is projected to conclude within a three-week timeframe.

Windanya Project

Occupying a prime locale for gold exploration, the Windanya Project spans 13 tenements, encompassing an area of approximately 19 square kilometres, positioned 20 kilometres north of the Paddington Gold Plant and 5 kilometres west of the all-weather Goldfields Highway.

Horizon has taken initial steps in evaluating Windanya, culminating in its inaugural JORC Inferred Mineral Resource declaration for the Capricorn deposit within the tenement during the previous year.

Alongside this accomplishment at the Capricorn deposit, Horizon’s efforts in soil and auger sampling, along with shallow drilling, have pinpointed promising targets at the Gemini, Scorpio, and Aquarius prospects. Dundas Minerals is poised to extend exploration endeavours in these regions to uncover their full potential.

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Figure 1: Location of the Windanya and Banden Powell / Scotia Projects

Banden-Powell / Scotia Project

Encompassing an area of 20.54 square kilometres, the acquisition of the Baden-Powell / Scotia Project encompasses two granted Mining Licenses and four Prospecting Licenses, supplemented by Dundas’ application for three contiguous Prospecting Licences adjoining Horizon’s Baden Powell / Scotia tenements.

Mirroring the Windanya Project, this venture is strategically positioned alongside the Goldfields Highway and in proximity to the Paddington gold plant. The Baden-Powell segment obtained its JORC classification in September 2022, with the region’s geology hosting sheared porphyry-ultramafic contacts, along with indications of supergene gold occurrences. Horizon’s drilling campaigns in 2020 and 2021 confirmed sustained significant mineralization, instilling confidence in the Mineral Resource estimation published in September 2022.

Within the tenement’s scope, historic prospects like Scotia and Olympia are also included.

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Figure 2: Baden-Powell / Scotia tenements showing prospects and bedrock geology

Terms of Horizon Minerals Agreement

Dundas Minerals has solidified a binding 2-year Option agreement with Horizon Minerals (ASX: HRZ) for the acquisition of its wholly owned Black Mountain Gold subsidiary, encapsulating two novel projects situated within the prolific Bardoc Tectonic Zone to the north of Kalgoorlie.

Under the terms of this arrangement, the Company possesses an option for an 85% stake in each of the tenements, while Horizon retains a 15% free carried joint venture interest until a Decision to Mine is reached for any prospect within the tenements.

The stipulations of the agreement include an option fee of $125,000 (plus GST) payable within five days of the contract’s signing, along with the issuance of 773 fully paid ordinary shares of Dundas Minerals, valued at $0.0773 per share, equating to $250,000 plus GST. Furthermore, the accord entails an anniversary payment of $125,000 (plus GST) to be rendered within 5 business days of the first anniversary of the agreement.

With Horizon Minerals redirecting its focus toward advancing the Cannon, Penny’s Find, and Rose Hill gold projects for production, Dundas is positioned to seize opportunities at Windanya and Baden-Powell/Scotia.

Commenting on the acquisition of these advanced-stage gold exploration ventures, Dundas Minerals’ Managing Director, Shane Volk, expressed enthusiasm about the exciting prospects these projects bring to the Company.

“Horizon has been undertaking a well-publicised divestment of its exploration projects as the company moves to mine development,” he said.

“Given the competition for these projects, Dundas is pleased that Horizon viewed us as a worthy partner. We are keen to commence the first phase of exploration in coming weeks. Being so near to Kalgoorlie, the Goldfields Highway, and several gold plants, the economics of advancing a gold deposit from within these project areas into production, and generating income for the Company are favourable.”

DUN’s Australian Stock Exchange-listed share price has risen 5.55% and is currently trading at 3.8c (11am UTC+ 8 hours).

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