The due diligence process identified Mt Cecelia’s area to be highly prospective for conglomerate-hosted gold mineralisation, with the geology similar to Novo Resources (TSX-V: NVO) Purdy’s Reward and Beaton’s Creek projects where the gold is found in the Lower Fortescue Group
Mt Cecelia’s geology is consistent with the Witwatersrand-style conglomerate gold mineralisation found in South Africa, where West Wits has the highly complementary Witwatersrand Gold Project
The prospect is located circa 150km ENE of Marble Bar close to critical infrastructure
West Wits is in a unique position among peers to be able to leverage its geology team’s hands-on experience in the Witwatersrand Basin Project to expedite understanding the Mt Cecelia project area
Mining costs would be expected to be low if operations commence, due to the nature of the targeted conglomerate which typically present with high gold purity (96-98%) and which are amenable to, relatively simple and inexpensive extraction processes
As can be seen from the map below (Figure 1), Mt Cecelia’s Project area is located in the eastern Pilbara some 150km ENE of Marble Bar and covers an area of 224 sq km and is close to critical infrastructure.
FIGURE 1: LOCATION OF MT CECELIA PROJECT AREA
Of critical geological significance is the fact that some 215 hectares of the project area is comprised of the Hardey Formation of the Lower Fortescue Group, which is prospective for conglomerate hosted gold mineralisation. This has been confirmed according to the Geological Survey of Western Australia mapping (Figure 2).
FIGURE 2: MT CECELIA PROJECT AREA KEY GEOLOGY
Source: Geological Survey of Western Australia
Importantly, the due diligence process has identified the geology within Mt Cecelia as similar to two of high profile Novo Resources’ (TSX-V: NVO) key projects – summarised below – both within the Lower Fortescue Group, which is the same system within Mt Cecelia’s project area:
- Purdy’s Reward (western Pilbara): where a high-profile conglomerate gold discovery sparked substantial investor interest in the sector, especially to junior explorers with project areas linking to Lower Fortescue Group.
- Beatons Creek: lower profile project which has been geological modelled and a gold resource estimated and reported to NI 43-101 for both the surface and underground designated areas of the deposit – Measured and Indicated: 3.4Mt @ 2.7g/t Au (299,000oz); Inferred: 3Mt @ 2.7g/t Au (259,000oz).
In addition, a recent detailed desktop review commissioned by neighbour, Rumble Resources (ASX: RTR), which owns contiguous tenements to the south of Mt Cecelia, has confirmed the presence of Hardey Formation of the Lower Fortescue Group within its Braeside Project (Refer RTR ASX Announcement “Pebble conglomerates of the Lower Fortescue Group” – dated 5 October 2017).
More specifically, Rumble Resources’ announcement articulated “…prospectivity for Witwatersrand-style conglomerate hosted gold mineralisation in geological units similar to recent gold discoveries by Novo Resources (TSX-V: NVO) at its joint-venture project with Artemis Resources (ASX: ARV) in the western Pilbara.”
This Lower Fortescue Group link for the Mt Cecelia project area, is an asset which the West Wits geology team will be well placed to rapidly evaluate, given their experience in the Witwatersrand Basin in South Africa.
An early observation has been that if a JORC compliant conglomerate gold resource can be generated, then it is anticipated that operating costs will be low given the nature of the targeted conglomerate which typically present with high purity (96-98%) and simple extraction process comprising: blasting, open pit mining, crushing, gravity then fine gold chemical separation.
The geology team will produce a detailed exploration plan for the Board to review upon completion of the acquisition.