Cosmo Metals Ltd (“Cosmo” or the “Company”) (ASX: CMO) is pleased to announce the exercise of its option to acquire 100% of the shares in La Zarza Minerals Pty Ltd (“La Zarza”), holder of 12 contiguous Prospecting Licenses that comprise the Kanowna Gold Project (“KGP” or the “Project”).
The KGP is 1km west of Northern Star Resources’ world class Kanowna Belle gold operations which has produced more than 5.4Moz of gold since 1993 and currently runs at an annual production rate of approximately 150koz. The 20km2 KGP comprises 12 Prospecting Licenses 13km by sealed road east of Kalgoorlie in the Eastern Goldfields of Western Australia, one of the most prolifically well-endowed gold producing regions globally (refer Figures 1 & 2).
Cosmo’s Managing Director, James Merrillees commented: “The execution of the option to acquire the Kanowna Gold Project (KGP) is an exciting opportunity for Cosmo Metals’ shareholders. The potential at the KGP is compelling with proven gold mineralisation adjacent to the world-class Kanowna Belle deposit including headline drill intercepts of 18m @ 5.3 g/t Au and 10m @ 4.7 g/t Au.
The Company has identified widespread near-surface gold mineralisation at the KGP associated with structures analogous to the Fitzroy Fault, which controls mineralisation at Northern Star’s adjacent +7Moz
The acquisition of the KGP complements the Company’s existing base metals and lithium portfolio at Yamarna and is a low-cost entry into the prolific Eastern Goldfields adjacent to world-class projects with exceptional infrastructure.
With the help of our corporate advisors, we are in the process of securing the support of existing and incoming shareholders for a capital raising to complete the acquisition and fund drilling and exploration programs at the KGP.”
Due diligence by Cosmo’s technical team has confirmed four high priority, drill ready prospects at Don Álvaro, Laguna Verde, Dugite and WKL on the basis of:
1) Widespread surficial and near-surface gold at WKL and Dugite;
2) High grade gold in historical drilling including intersections at Don Álvaro and Laguna Verde; and
3) The association of the prospects with NE-trending structures cutting the Kanowna Shear which bisects the KGP from NW to SE.
Additional targets include numerous shallow aircore anomalies which have not been followed up including an intersection of 2m @ 3.6g/t Au from 36m in aircore hole EVAC05160 drilled by Evolution Mining in 2019. EVAC05160 was drilled at the northeast end of a drill line and remains open along strike and at depth (refer Figure 3).
All targets have been lightly tested with less than 12 holes in the entire project area drilled deeper than 150m noting recent discoveries at Velvet and Joplin less than 2km to the east have been at >400m vertical depth and where Northern Star have announced intersections including3:
Completion of the La Zarza acquisition is subject to approval of Cosmo shareholders at a General Meeting to be scheduled in or around late March / early April 2024.
Following the completion of the acquisition, the Company expects to immediately commence exploration at the KGP to include up to 2,000m of RC drilling to test high-priority targets at Don Álvaro, Laguna Verde, WKL and Dugite.
Shallow auger drilling is also planned to cover zones where favourable NE-trending structures intersect supergene gold anomalies in the project area.
The Company also notes widespread pyrite has been reported in historical exploration at Don Álvaro and Laguna Verde. Pyrite is also associated with gold mineralisation at Northern Star’s adjacent Velvet deposit and may represent a target for surface electrical geophysics (IP).
