Perth-based Cyclone Metals has wrapped up a maiden gold exploration program at its Mareburn and Macraes South projects, about 40km north of Dunedin in the Otago province of New Zealand. The area has historically churned out more than 10 million ounces of the precious metal.
Cyclone has bagged more than 50 geochemical samples at Mareburn for ionic leach and supertrace analytical test work. The company will use the results of the program to drive future exploration at the site with results expected in about a month.
The Mareburn gold project is a key target for Cyclone with significant historical gold mineralisation found within the ground’s thrust lodes.
According to management, another 182 geochemical samples were also collected at its Macraes South project, with the material now set for ionic leach test work.
Macraes is a Carlin-style, sediment-hosted gold deposit, with past exploration focusing mostly on the target’s thrust system.
Gold deposits found inside thrust systems in places such as Nevada in the United States have been found to contain about 20 million ounces of the metal, with close to 60 million ounces found in cross-cutting faults.
The Macraes thrust system has generated 10 million ounces of gold and Cyclone intends to explore the cross-cutting fault systems for Nevada-style gold mineralisation.
The company argues there has been no significant exploration at the Macraes South gold project, with earlier work mainly focused on regional mapping and structural interpretation.
Cyclone Metals has enlisted mining consultancy group RSC to help with all future exploration efforts in New Zealand.
Interestingly, both projects are adjacent to Oceania Gold’s 10-million-ounce Macraes gold deposit, that is currently churning out more than 150,000 ounces of gold per year.
The Macraes mine on New Zealand's South Island is the country's biggest active gold-producing mine. Since 1990, it has produced more than five million ounces of gold and boasts a reported five million ounces resource and reserve base.
Any exploration success at its Mareburn and Macraes South projects could extend Oceania Gold’s mine life beyond its current six-year projection.
Cyclone secured Mareburn and Macraes South through its acquisition of six New Zealand-based exploration projects after its takeover of Grand Port Resources in February. The play has resulted in a portfolio of highly prospective copper, nickel and platinum group element operations.
Cyclone recently picked up $500,000 through a share placement to fund its exploration work in New Zealand.
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