VANCOUVER, BC, April 19,
2023 /CNW/ - Fosterville South Exploration Ltd.
("Fosterville South" or "FSX") or (the "Company") (TSXV: FSX)
(OTCQX: FSXLF) (Germany: 4TU) is
pleased to announce that it has entered into an agreement with
privately held Wild Dog Resources Inc. ("WDR") to acquire a
significant 2166 sq. km mineral exploration land package in
Papua New Guinea ("PNG") including
multiple Exploration Licenses ("EL") and Exploration License
Applications ("ELA").
Highlights:
- 2166 sq. km land position assembled via acquisition of a
variety of EL and ELAs
- including 614 sq. km project contiguous with and SE of K92
Mining Inc exploration tenements
- including 130 sq. km project contiguous with and NW of K92
Mining Inc. tenements, 10km from mining operations
- PNG EL and ELAs will compliment extensive gold land package
of FSX in Australia
The total PNG land package to be acquired by FSX includes both
early stage and advanced stage exploration targets with high grade
epithermal vein and porphyry style mineralization present.
FSX has a significant cash position and therefore,
post-transaction, will be well positioned to advance these projects
on the ground following up the substantial amount of fieldwork and
development of drill targets already completed by WDR over the past
two years. FSX team members have significant experience operating
within Southeast Asian island arc epithermal and porphyry
mineralization environments, and specifically in PNG.
FSX CEO Bryan Slusarchuk states,
"Papua New Guinea is home to
multiple world class mining, development and exploration projects
and the country hosts some of the most incredible geology on earth.
Through the rapid growth of K92 Mining in PNG, the recent
announcement regarding Wafi-Golpu moving forward and of course the
ongoing corporate discussions between Newmont and Newcrest, the
amazing mineral potential of PNG is becoming more widely known.
Many shareholders of FSX have invested in the PNG mining sector and
we are confident they will share management's enthusiasm for this
acquisition.
WDR has invested significant capital and time acquiring and
advancing these assets in PNG and their hard work and strong
technical execution both on the ground and corporately has put in
place an excellent foundation for success as we move
forward."
WDR CEO Alan Martin, states,
"WDR has assembled a commanding land position within the heart of
one of the world's best regions for gold and copper exploration.
Putting together these projects, developing excellent community
relations and then advancing targets through fieldwork has put WDR
in a position to now take the next step in PNG. Through this
transaction with FSX, we are emerging as a company with a very
strong cash position to deploy on the ground and a team with a
track record of success in PNG within a superb share structure.
Current WDR shareholders become large shareholders of the combined
entity and we look forward to working together within this well
funded entity to unlock the potential of the assets, exploring for
Tier 1 Copper-Gold deposits in PNG."
Kainantu Regional Geology, PNG
The Kainantu district is located within the New Guinea Thrust
Belt, close to its northern contact with the Finisterre Terrane.
The contact is marked by the northwest trending Ramu-Markham Fault,
a major suture zone that marks the northern margin of the
Australian Craton. The New Guinea Thrust Belt records an early
Miocene or older ductile, tight folding event that was followed by
middle Miocene intrusions. Late Miocene regional scale low-angle
thrust faulting followed, associated with the collision of the
Finisterre Terrane. The belt is characterised by a number of
north-northeast trending fault zones that commonly host major
deposits (K92 Mining).
Locally, the Kainantu area is underlain by greenschist to
amphibolite facies metamorphic rocks of the Early Miocene Bena Bena
Formation, which are unconformably overlain by the Miocene age
Omaura Formation consisting of volcano-sedimentary units and
limestone lenses. The overlying Yaveufa Formation comprises
basaltic and andesitic flows, agglomerates, volcanoclastic
sandstone and limestone. The mid-Miocene Akuna Intrusive Complex
consists of multiple phases ranging from olivine gabbros,
dolerites, hornblende gabbros and biotite diorites to
granodiorites. Late Miocene age Elandora Porphyry intrusions and
breccias are associated with mineralization and occur within
proximity to a major north-northeast trending transfer
structure.
Known mineralisation in the area consists of gold and copper
skarn deposits, porphyry copper deposits, shear-hosted gold
deposits, epithermal vein deposits and gold placer deposits.
Over 35 hard rock and 18 gold placer deposits are known within
the area. Of significance are the Kathnell shear-hosted auriferous
quartz veins; such structurally controlled veins may be more
widespread than proposed previously and offer a new exploration
target (Downes, 1993).
The Kainantu Gold Mine, in Eastern
Highlands province, Papua New
Guinea, is a newly discovered and significant example of
diverse Cu-Au mineralisation styles in a porphyry mineral system.
K92 Mining owns and operates Kainantu, and in March 2023 their stated resources at the mine
were 2.6 Moz at 9.8 g/t AuEq (Measured and Indicated), and 2.9 Moz
at 9.2 g/t AuEq (Inferred). Furthermore, the Inferred Resource at
the K92 Blue Lake porphyry deposit is stated as 10.8Moz at 0.61 g/t
AuEq. Mineralization on the property includes Au, Ag and Cu
occurring in low sulphidation epithermal Au-telluride veins,
Au-Cu-Ag sulphide veins of Intrusion Related Gold Copper ("IRGC")
affinity, less explored porphyry Cu-Au systems and alluvial
gold. The mineralization at the Kainantu Gold Mine is not
necessarily indicative of mineralization on the WDR mineral
properties
Arau Project, Kainantu, PNG
The Arau Project consists of one EL2651 and one ELA located in
Kainantu region, Eastern Highlands
Province, PNG, which are immediately east of and adjoining
the Kainantu gold mine owned by K92 Mining Ltd.
Initial exploration work by previous operators has identified
two potential deposit types at the project:
- Epithermal gold (Sabudia Hill, Onga Hill and Erandora
prospects) and
- Copper-gold porphyry prospects (Mt. Victor, Mt. Aiyonka, Ebitara and P1
prospects).
Within the licence area, the Mt. Victor Prospect (copper-gold
porphyry target) covers an area of 800m by 400m and
previous drilling suggests that the prospect area is a multiple
phase intrusive complex that is copper and gold mineralized. It is
a drill ready prospect in which previous channel sampling has
identified the following strong gold grades:
- 38m @ 2.64 g/t Au
- 12m @ 5.5 g/t Au
- 18m @ 2.4 g/t Au
- 10m @ 3.7 g/t Au.
These channel samples are in the central part of the Mt Victor
prospect southwest of the former Mt Victor gold mine. Previous
drilling was carried out in the 1980s, and all drillholes presented
were vertical, which may not have been appropriate for the
subvertical fault zones present within the prospect.
Table 1 – Mt Victor Prospect Significant Drill Intercepts
Hole ID
|
E*
|
N*
|
Depth
|
From (m)
|
Length (m)
|
Au g/t
|
Cu ppm
|
Notes
|
CRD58
|
385177
|
9291680
|
64.5
|
0
|
64.5
|
0.18
|
106
|
granodiorite intruded
by diorite
|
DDH89-1
|
384650
|
9291308
|
260
|
234
|
5
|
0.85
|
NA
|
visible disseminated
copper mineralization
|
DDH89-2
|
384965
|
9291825
|
300
|
43
|
10
|
1.10
|
NA
|
under review
|
DDH89-3
|
384873
|
9291562
|
300
|
213
|
10
|
1.20
|
NA
|
under review
|
MVD07
|
384746
|
9291253
|
52.8
|
0
|
52.8
|
0.10
|
384
|
altered pyritic
diorite
|
MVD08
|
384831
|
9291327
|
30
|
16
|
14
|
0.19
|
373
|
argillic altered
QFP
|
MVD09
|
384853
|
9291333
|
36
|
34
|
2
|
0.29
|
NA
|
epidote altered
intrusive
|
MVD20
|
384900
|
9291345
|
75
|
0
|
75
|
0.34
|
304
|
argillic altered
brecciated porphyry
|
MVD21
|
384890
|
9291353
|
48
|
0
|
48
|
0.41
|
329
|
diorite/QFP brecciated
contact
|
MVD36
|
385032
|
9291456
|
24
|
22
|
2
|
14.70
|
463
|
altered pyritic
porphyry
|
MVD40
|
384994
|
9291435
|
38
|
0
|
38
|
3.10
|
1400
|
silica epidote altered
porphyry
|
MVD46
|
384932
|
9291388
|
34.5
|
15
|
19.5
|
0.33
|
117
|
epidote pyrite altered
porphyry
|
MVD50
|
385068
|
9291469
|
29
|
16
|
13
|
0.13
|
722
|
clay altered
granodiorite
|
MVD52
|
384962
|
9291475
|
30
|
14
|
16
|
1.01
|
77
|
sericite epidote
altered porphyry
|
MVD62
|
384704
|
9291152
|
75
|
40
|
35
|
0.12
|
287
|
kspar epidote altered
porphyry
|
MVD63
|
384596
|
9291160
|
48
|
0
|
48
|
0.75
|
373
|
diorite intruded by
pyritic porphyry
|
![Figure 2. Mt Victor Prospect Map with proposed drill sites (CNW Group/Fosterville South Exploration Ltd.) Figure 2. Mt Victor Prospect Map with proposed drill sites (CNW Group/Fosterville South Exploration Ltd.)](https://mma.prnewswire.com/media/2057601/Fosterville_South_Exploration_Ltd__FSX_to_Acquire_Significant_Pa.jpg)
Initial drilling at the Arau Project will involve five angled
diamond drill holes to follow up on a successful electromagnetic
survey and previous excellent geochemical sampling results.
Wild Dog Project, New Britain, PNG
The Wild Dog Project consists of two Exploration Licence
Applications (EL2516 & EL2761) totalling 1424 sq. km, which are
located on the island of New Britain and are approximately 50 kms
southwest of Rabaul and Kokopo, PNG.
The Wild Dog project occurs within a major NNE trending
structure of at least 26km in length which transect apparent
volcanic caldera structures and intrusions. During the Mio-Pliocene
at least three volcanic centres, known as the Nengmutka, Keravat
and Sikut calderas, were localised along this horst and graben
zone. This structural corridor is an epithermal and porphyry
hydrothermal-magmatic mineralized field.
The Nengmutka Caldera, which hosts the Wild Dog deposit, is
characterised by a suite of calc-alkaline andesite breccia and ash
flow tuff known as the Nengmutka Volcanics (Lindley, 1988). This
formation has been mapped over an area of 600 km2.
Tonalite of the Arabam Diorite intrudes the volcanic sequence and
appears to be partly coeval with the caldera related volcanism.
The precious metal prospects are associated with epithermal type
veining that contain gold-silver-telluride (Au-Ag-Te)
mineralisation. Gold and silver occur as native metals and as
telluride minerals. Porphyry copper-gold type mineralization also
occurs associated with these intrusion centres that usually underly
the epithermal systems. The whole of the recognised belt is held
within the Wild Dog tenements.
Within the central part of the Wild Dog project, a significant
structural corridor called the "Wild Dog – Gunsap Corridor"
occurs. The corridor is at least 15 km long and up to 4 km
wide and hosts at least three porphyry copper-gold prospects and
several epithermal gold deposits and prospects.
The original Wild Dog epithermal gold deposit occurs within the
"Wild Dog – Gunsap Corridor" in the central part of the tenements.
It was discovered in 1983, with exploration including extensive
mapping, trenching, rock sampling & drilling between 1983 and
2005 by various explorers. New Guinea Gold Limited (NGGL) operated
a small open pit mining operation from 2007 and 2011. No
exploration has occurred since the closure of the mine.
Historical work completed by a previous operator returned
significant gold assays. Channel sampling at the Kavursuki Prospect
yields 4m at 9.41 g/t Au and at the
Kargalio Vein 6m at 11.5 g/t Au.
Drilling of the Kavursuki Prospect by previous explorers,
located within the Wild Dog Zone and north of the former Wild Dog
mine, also yielded positive high-grade results.
Table 2 – Kavursuki Prospect Significant Drill Intercepts
Hole ID
|
N
|
E
|
RL
|
Depth
|
Azim
|
Dip
|
From (m)
|
Length (m)
|
Au g/t
|
Cu ppm
|
90KVD005
|
9490500
|
395008
|
787
|
85.60
|
101.50
|
-45.00
|
5.35
|
1.25
|
12.80
|
1200
|
90KVD009
|
9490834
|
395227
|
758
|
93.85
|
101.50
|
-45.00
|
44.65
|
3.75
|
11.21
|
639
|
10KVD016
|
9490464
|
394971
|
798
|
51.00
|
101.50
|
-50.00
|
35.44
|
8.06
|
6.49
|
194
|
10KVD017
|
9490464
|
394970
|
798
|
50.00
|
101.50
|
-65.00
|
29.08
|
1.12
|
33.70
|
120
|
11KVD019
|
9490496
|
395039
|
807
|
45.10
|
101.50
|
-60.00
|
11.10
|
5.25
|
9.45
|
167
|
11KVD020
|
9490537
|
395045
|
805
|
50.90
|
101.50
|
-50.00
|
32.45
|
11.05
|
3.18
|
377
|
11KVD025
|
9490809
|
395241
|
752
|
45.20
|
101.50
|
-50.00
|
14.75
|
8.15
|
18.77
|
2801
|
11KVD026
|
9490810
|
395272
|
776
|
51.70
|
281.50
|
-60.00
|
33.80
|
5.10
|
14.70
|
101
|
11KVD027
|
9490870
|
395252
|
767
|
56.10
|
101.50
|
-50.00
|
30.70
|
1.90
|
10.35
|
46
|
Apart from the drilling conducted at the former Wild Dog gold
mine there remain several drill intercepts that require further
exploration outside of the mine environment as tabulated below,
apart from the various trenching and channel sampling targets.
Table 3 – Wild Dog Prospect Area Significant Drill Intercepts
Hole ID
|
N
|
E
|
RL
|
Depth
|
Azim
|
Dip
|
From
|
Length
|
Au g/t
|
Cu ppm
|
86WDD020
|
9489141
|
394278
|
983
|
259.35
|
103.50
|
-60.00
|
129.35
|
7.70
|
5.28
|
902
|
87WDD024
|
9489117
|
394316
|
965
|
152.55
|
98.50
|
-60.00
|
138.25
|
5.10
|
8.32
|
8556
|
87WDD027
|
9489115
|
394325
|
965
|
200.40
|
98.50
|
-60.00
|
117.95
|
6.20
|
19.13
|
786
|
87WDD040A
|
9489219
|
394320
|
994
|
280.99
|
103.50
|
-60.00
|
148.60
|
4.20
|
12.50
|
4066
|
87WDD045
|
9489235
|
394287
|
988
|
300.20
|
103.50
|
-60.00
|
201.30
|
2.85
|
16.94
|
32123
|
87WDD051
|
9489249
|
394257
|
985
|
309.10
|
103.50
|
-60.00
|
253.95
|
6.05
|
7.29
|
2054
|
87WDD058
|
9489285
|
394359
|
977
|
285.90
|
101.50
|
-60.00
|
147.00
|
12.45
|
4.96
|
6694
|
87WDD064
|
9489179
|
394289
|
1001
|
290.60
|
101.50
|
-60.00
|
158.00
|
14.95
|
2.73
|
650
|
87WDD065
|
9489160
|
394330
|
996
|
250.10
|
101.50
|
-60.00
|
142.70
|
4.65
|
5.49
|
3246
|
87WDD069
|
9489139
|
394375
|
991
|
123.50
|
101.50
|
-60.00
|
88.55
|
7.75
|
7.12
|
7151
|
08WDD111
|
9489393
|
394513
|
906
|
100.00
|
281.50
|
-60.00
|
48.40
|
7.10
|
5.47
|
931
|
85WDD014
|
9488708
|
394260
|
954
|
86.20
|
113.50
|
-51.00
|
48.25
|
5.25
|
9.79
|
10863
|
86WDP010
|
9488839
|
394302
|
909
|
60.00
|
83.50
|
-60.00
|
34.00
|
6.00
|
6.71
|
5047
|
87WDD040A
|
9489219
|
394320
|
994
|
280.99
|
103.50
|
-60.00
|
164.55
|
13.50
|
8.56
|
3056
|
90WDD086
|
9488948
|
394337
|
890
|
79.00
|
78.50
|
-50.00
|
18.45
|
11.25
|
16.22
|
3473
|
97WD098
|
9489389
|
394487
|
905
|
39.00
|
98.50
|
-45.00
|
12.00
|
8.00
|
9.73
|
NA*
|
NA* - not assayed or not available.
Table 4 – Mengmut Prospect Significant Drilling Intercepts
Hole ID
|
North
|
East
|
RL
|
Depth
|
Azim
|
Dip
|
From
|
Length
|
Au g/t
|
Cu ppm
|
MRC01
|
9487963
|
393871
|
968
|
20.00
|
0.00
|
-90.00
|
2.00
|
18.00
|
3.05
|
3084
|
MRC02
|
9487978
|
393874
|
971
|
30.00
|
0.00
|
-90.00
|
0.00
|
18.00
|
3.07
|
1053
|
90WDD087
|
9488091
|
394082
|
1021
|
61.95
|
101.50
|
-50.00
|
7.30
|
1.35
|
5.02
|
1650
|
90WDD088
|
9488104
|
394070
|
1023
|
40.30
|
101.50
|
-50.00
|
21.30
|
1.55
|
3.95
|
25
|
MMD003
|
9486870
|
393532
|
924
|
104.00
|
133.00
|
-50.00
|
|
2.35
|
4.42
|
NA*
|
MMD006
|
9486770
|
393479
|
945
|
122.05
|
133.00
|
-50.00
|
|
2.55
|
4.16
|
NA*
|
Additionally, multiple samples collected from a historic
stockpile near the Wild Dog Zone returned bonanza grades of gold
and copper including Sample 30104 which assayed 242 g/t Au, 601 g/t
Ag, 9.52% Cu and Sample 68001 which assayed 122.5 g/t Au, 350 g/t
Ag and 11% Cu.
The exploration program at Wild Dog will initially focus on
drilling the copper-gold Magiabe porphyry target as well as testing
the potential existence of an arrowhead intrusion complex at depth
beneath the Wild Dog zone (Figure 5).
Kesar Creek Project, Kainantu, PNG
The Kesar Creek Project consists of one ELA2711 and is located
10 kms west of the Kora gold mine owned and operated by K92
Mining.
Exploration at Kesar Creek has identified the presence of
semi-massive copper sulphides associated in quartz veins
paralleling the Kora gold deposit as well as the potential for a
copper-gold porphyry deposit. Although limited exploration
has been carried out at Kesar Creek, initial rock sampling programs
returned high-grade gold-copper-silver values including:
- Rock sample no 14128 at 11.5 g/t Au
- Rock sample no A1428 at 11.9 g/t Au
- Rock sample no 9231F at 10.6 g/t Au
- Rock sample no 14236 at 11.6 g/t Au, 29 g/t Ag, 360 ppm Cu
- Rock sample no. A14023 at 30.4 g/t Au, 240 g/t Ag, 1300 ppm
Cu
Terms of Transaction
Via the execution of a non-binding term sheet, Fosterville South
and WDR have agreed to negotiate and settle the terms of a
definitive share purchase agreement whereby Fosterville South will
acquire all the issued and outstanding securities of WDR.
Management of both WDR and FSX support this transaction. In
consideration of WDR, Fosterville South will issue a total of 16.8
million common shares to the shareholders of WDR, 526,835 share
purchase warrants to the warrant holders of WDR and grant 1,553,520
options to the stock option holders of WDR. The transaction
is subject to TSX Venture Exchange acceptance, entry into a
definitive agreement and such conditions as are customary for
similar transactions.
About FSX
FSX began with two, 100% owned, high-grade gold projects called
the Lauriston and Golden Mountain Projects, and has since acquired
a large area of granted and application tenements containing
further epizonal (low-temperature) high-grade gold mineralisation
called the Providence Project and a large group of recently
consolidated license tenement applications called the Walhalla Belt
Project, which contain a variety of epizonal and intrusion related
style gold mineralisation, all in the state
of Victoria, Australia. The Fosterville South land
package, assembled over a multi-year period, notably includes a 600
sq. km property immediately to the south of and within the same
geological framework that hosts Agnico
Eagle's Fosterville epizonal gold tenements.
Additionally, Fosterville South has gold-focused projects called
the Moormbool and Beechworth, which are also located in the state
of Victoria, Australia. Moormbool project has epizonal
style gold mineralisation and Beechworth has mesozonal and
intrusion relation gold mineralisation. The primary focus has been
to explore for epizonal gold deposits similar to the outstanding
world class Fosterville gold
mine.
All of FSX's properties, with the possible exception of
Moormbool, have had historical gold production from hard rock
sources despite limited modern exploration and drilling. Victorian
exploration is continuing to focus on specific key targets where
results to date indicate excellent exploration potential.
Qualified Person
The technical content of this news release has been reviewed,
verified and approved by WDR Director, Chris Muller, PGeo, a Qualified Person under the
meaning of National Instrument 43-101 – Standards of
Disclosure for Mineral Projects. Mr. Muller is responsible
for the technical content of this news release and has spent time
onsite reviewing sampling results as well as discussing work
programs and results with geology personnel and external
consultants.
On behalf of the Company
Rex Motton
Chief Operating Officer and Director
Forward-Looking
Statements
Information set forth in this news release contains
forward-looking statements that are based on assumptions as of the
date of this news release. These statements reflect management's
current estimates, beliefs, intentions and expectations. They are
not guarantees of future performance. Fosterville South cautions
that all forward looking statements are inherently uncertain and
that actual performance may be affected by many material factors,
many of which are beyond their respective control. Such factors
include, among other things: risks and uncertainties relating to
Fosterville South's limited operating history, its exploration and
development activities on the Lauriston, Golden Mountain,
Providence and Beechworth
Properties and the need to comply with environmental and
governmental regulations. Accordingly, actual and future
events, conditions and results may differ materially from the
estimates, beliefs, intentions and expectations expressed or
implied in the forward-looking information. Except as required
under applicable securities legislation, Fosterville South does not
undertake to publicly update or revise forward-looking
information.
Neither TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in the policies of the Exchange)
accepts responsibility for the adequacy or accuracy of this
release.
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SOURCE Fosterville South Exploration Ltd.