DGO Gold has expanded its land holding around a prospective copper target on the Stuart Shelf in South Australia, which also hosts BHP’s Olympic Dam and OZ Minerals’ Carrapateena deposits.
DGO acquired five South Australian exploration licenses after signing an agreement with Investigator Resources, and will spend $6.35 million on exploration in stages over five years.
Under the agreement, DGO will earn up to 80 per cent interest in the five exploration licenses, which are adjacent to DGO’s Pernatty tenements in the Eastern Gawler Craton.
The company’s land position will be increased by up to 72 per cent (4353 square kilometres), which covers a total transition zone strike of more than 100 kilometres.
DGO has identified a large, shallow Zambian copper belt-style target in the Stuart Shelf, which crosses both DGO and Investigator’s tenements.
According to DGO, the transition zone target has an ore-grade copper mineralisation of 1.9 metres at 1.7 per cent copper from 185 metres within a diamond core hole drilled in 1976, east of the target zone.
No drilling has occurred within the target zone, with DGO set to start drilling the target in the December quarter.
“DGO has a highly compelling sediment-hosted copper target based on carefully researched models and concepts. This deal with Investigator Resources allows DGO to rapidly advance exploration in South Australia,” DGO executive chairman Eduard Eshuys said.
Investigator Resources already holds a Native Title Agreement with the Traditional Owners, allowing DGO to fast-track field operations at Pernatty.