(MENAFN- ProactiveInvestors - Australia) Intermin Resources Ltd (ASX:IRC) has acquired 164 square kilometres of new gold projects and exploration tenure in the prospective Kalgoorlie-Boulder region of Western Australia.
The new acquisitions are located immediately along strike or adjacent to major regional gold producing structures with known gold occurrences.
Intermin recently commenced 20,000 metres of drilling at its flagship Teal gold project also located near Kalgoorlie. Initial results are expected this quarter.
Jon Price, managing director, commented: 'The company is well funded to increase our exploration effort on tenure that has had very little work done in the last 20 years.
'This region has undergone a significant resurgence in recent times with many new discoveries that certainly dispels the old adage that the area is a tired mature gold field.'
New acquisitions
The acquisitions comprise 26 prospecting licence applications, five exploration licence applications and one granted exploration licence.
Review of existing historical data and target generation is underway with drilling to commence once applications and approvals have been granted expected in the March quarter.
Of particular interest is the Black Flag Project underlain by the Black Flag sediments which was subject to shallow reverse circulation and aircore in the 1990s with walk up targets identified.
All the ground was acquired at very low cost and has had very little exploration conducted over the last 20 years.
Background
Intermin has a number of quality gold assets in the world class gold mining region surrounding Kalgoorlie-Boulder in Western Australia.
The company's flagship projects are the 100% owned Menzies and Teal projects which host significant mineralisation and have the potential to be mined via open cut and underground methods.
The Teal Stage 1 open pit gold mine within the Teal project represents a near term opportunity for gold production.
During October, Intermin's board approved the development of the Teal State 1 gold mine.
At a gold price of A$1,665 per ounce, Teal Stage 1 will generate A$9.3 million in free cash flow during the 2017 financial year.
The small open pit gold project is capable of producing 15,567 ounces of gold over 9 months for a capital cost of $3.9 million.
Intermin recently signed a binding heads of agreement with Eastern Goldfields Ltd (ASX:EGS) with regard to its Menzies and Goongarrie gold projects.
Drilling in progress
Intermin recently commenced a resource expansion drilling program at the Teal gold project, which is to be followed by a regional exploration drilling program.
The resource expansion program will comprise of 12,000 metres of drilling to test multiple high grade oxide and primary gold targets.
Drilling will be conducted in parallel with the development of the Teal Stage 1 open pit gold mine.
Any gold resources discovered near to Teal Stage 1 have the opportunity to extend the current mine life.
A further 8,000 metre regional exploration drilling program will follow the resource expansion program.
Drilling is continuing at Teal and Peyes Farm before the rigs head to Blister Dam for its maiden drilling program in 25 years.
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