Strategic Energy Resources has awarded a drilling contract for its Saxby gold project in Queensland in a move to kickstart its exploration.
The contractor, Australian Mineral and Waterwell Drilling (AMWD), plans to drill two vertical holes at the Saxby exploration project from next month.
Saxby is the most significant gold exploration prospect in the northeast Mt Isa Province, according to Strategic Energy.
The company is targeting mineralisation hosted in basement rocks of the Eastern Succession of the Mt Isa Province, buried beneath younger sedimentary cover of the Carpentaria Basin.
“Strategic Energy Resources is looking forward to testing our geological theories at Saxby. Our goal is simple: thick intersections of high-grade gold,” Strategic Energy chairman Stuart Rechner said.
The Eastern Succession has a long and proven record of mineral endowment, with previous explorers such as Anglo American, Falcon Minerals and AngloGold Ashanti.
Strategic Energy also has other exploration projects including the Billa Kalina copper gold project 60 kilometres northeast of OZ Minerals’ Prominent Hill copper gold mine in South Australia, as well as the Ambergate heavy mineral sands project in Western Australia.
The company is Fortescue Metals Group’s joint venture (JV) partner at the Myall Creek project in South Australia. Fortescue plans to spend $1.5 million on exploration over five years, including a minimum drilling of 1500 metres, to earn 80 per cent interest in the project.
A JV will form upon Fortescue’s earn-in completion, where each party may contribute pro-rata to further exploration and development.