Terrain Minerals is now the sole owner of the Smokebush tenements in WA’s Mid West after mopping up the remaining 20 per cent interest of the gold-bearing ground from a private vendor.
The company has been systematically exploring the zone since entering a farm-in and joint-venture deal in 2019 posting several solid intersections since then including 3m at 4.86 grams per tonne gold from 135m and 3m at 3.62 g/t from 73m last year.
A slew of other notable results were recorded during a subsequent program in 2020 including a 4m strike going 4.46 g/t gold from 51m and 6m at 2.12 g/t from 80m. Longer hits from the campaign include 6m grading 2.12 g/t from 80m and 8m running 1.37 g/t from 85 m.
The ASX-listed explorer has been studiously pouring over legacy data sets for the past few years weighing up the project’s potential and its review has lifted the lid on some enticing historical drill hits which appear to emphasise the asset’s prospectivity.
Company geologists have turned up some tantalising historical results from sporadic drilling across several prospects within the project area including 2 metres grading 11.3g/t gold from 70m, 2m going 9.2g/t from 24m and 10m at 1.4g/t from a depth of 15m.
The prospective gold ground at Smokebush comprises four exploration and five prospecting licenses. The licences have been comprehensively tested with surface sampling where the historically drilled prospects T13, T16, Monza, Hurley and Wildflower were identified.
Perth-based Terrain has now seemingly seen enough value in the ground to pull the trigger on a significant land grab that will allow it to claim ownership of the total land package.
Terrain’s deal with the private vendor puts 10 million Terrain shares onto the vendor's balance sheet valued at around $70,000. The vendor will also pick up a 1 per cent net smelter royalty for the first 100,000 ounces of gold or equivalent value of other minerals found.
The company’s newly minted ground appears to be positioned in a bustling part of town with several adjacent mines being discovered and mined by the private vendor.
The wider area also looks promising and includes 29 Metals’ Golden Grove base metals play that has been mined over 27 years with more than ten years’ worth of mine life still left in the reserves.
In addition, Tungsten Mining NL is sitting on a reasonable mineral resource at the Mulgine Trench and Mulgine Hill deposits nearby with a combined resource of around 290 million tonnes at 0.11 per cent tungsten trioxide and 270 parts per million molybdenum.
Terrain has also completed a second acquisition which sits adjacent to Smokebush for just $20,000 which adds further weight to the company’s growing landholding in the area.
Is your ASX-listed company doing something interesting? Contact: matt.birney@businessnews.com.au
