Strickland kicks off next phase exploration of huge WA gold system

Strickland Metals has kicked off a ground gravity survey across its massive 7.5-kilometre intrusion-related gold system at the company’s 108,900-ounce Dusk ‘til Dawn gold camp, which is part of its wider 257,000-ounce Yandal project in Western Australia’s northeastern Goldfields.

The company has engaged Atlas Geophysics to conduct the gravity survey across Dusk ‘til Dawn’s ground. The survey will allow for improved modelling of the intrusive gold system and help Strickland pinpoint drill holes for an upcoming eight-hole diamond drill program.

Strickland Metals revealed earlier this month it has identified a significant intrusion-related gold system at the camp from a combination of geochemical, geophysical and geological analysis. 

Recent geophysical results have aligned with alteration and anomalous geochemistry from historic air core drilling to produce two compelling mineralised corridors within a 7.5km strike. The historical data highlights a clear geochemical zonation of gold, molybdenum, copper, bismuth and tellurium.

Management believes the intrusive features are at the core of a hydrothermal system that is driving the alteration and coincident mineralisation.

It says the large scale and intensity of alteration suggest significant fluid flow and that gold at Dusk is one of many second-order splays towards the outer edge of the system. 

Strickland views the Dusk-style mineralisation as a discrete target within the broader Yandal project, as it possesses a different style of mineralisation to that discovered elsewhere in the project’s ground. 

Two significant bottom-of-hole gold trends, greater than 0.1 grams per tonne gold, span the 7.5km strike length and have only been tested to date with wide-spaced air core drilling.

The company collected 170 bottom-of-hole samples last week from historic air core holes and have submitted them for comprehensive mineral analysis and testing to determine their mineral characteristics. Samples were grabbed from both the western and eastern target areas.

Strickland Metals technical director Richard Pugh said: “The survey is designed to provide higher resolution modelling of the interpreted intrusive features, which Strickland believes is the critical driver of gold mineralisation in the area. The survey is being conducted on a much closer 50m spacing grid compared to the limited historic 200m grid spacing.”

The company believes its high-conviction targets are potentially analogous to Australia’s biggest producing gold operation, the imposing 20-million-ounce Boddington gold mine.

The Boddington mine, 16km from the rural farming town of Boddington and 130km southeast of Perth, produced 786,000 ounces of gold in 2023 to assume the mantle as the nation’s premier gold producer.

Strickland is also planning to soon reveal an updated mineral resource at its nearby Horse Well gold camp. 

Both camps are part of the 257,000-ounce Yandal project and 50km from Northern Star Resources’ 10-million-ounce Jundee gold project in WA’s northeastern goldfields.

The Horse Well gold camp comprises a 148,100-ounce resource spread across its Palomino-Filly-Filly SW and Warmblood deposits.

A significant reverse circulation and diamond drilling program was completed at the gold camp last year, targeting high-value ounces from shallow oxide material at the Palomino and Warmblood deposits, which are considered suitable for open pit mining.

Additional drilling was conducted along strike and down-plunge, targeting depth extensions to previously identified mineralisation to assess the potential for underground mining. All deposits remain open along strike and down-plunge.

Strickland conducted further drilling at several advanced targets - Bronco, Konik and Marwari - to improve its understanding of and confidence in the mineralisation for Horse Well’s upcoming resource update. 

It has lodged a mining licence application for the Horse Well camp, which it expects to progress as a priority. 

The company plans to unlock serious value at Horse Well this year and the mining licence is critical to achieving that aim by advancing the project towards development.

The company remains well cashed-up with an enviable $33.8 million in cash and ASX-listed Northern Star Resources shares at the end of 2024. 

Having two impressive assets under its belt, the growing Yandal project coupled with the stunning 6.69-million-ounce gold-equivalent Rogozna project in Serbia, Strickland appears to be on a path to set itself up as a major gold player.

Is your ASX-listed company doing something interesting? Contact: matt.birney@businessnews.com.au