Modern Metals Corp Ltd holds the Kathleen Valley tenement in joint venture with Australian public company Trans Pacific Energy Group Ltd, now 100% owned by UK company New Generation Minerals Limited (“NGM”) (“the Joint Venture”).
NGM currently holds 80% of the Kathleen Valley project interest leaving Modern Metals Corp Ltd with a free carried 20% during the exploration phase.
At Kathleen Valley, the Joint Venture has recently been successful in making a Maiden Discovery of a blind Zinc-Gold-Silver mineralised system.
The Company is very pleased by this considering recent positive momentum in the Gold price, which continues to strike new 52 week highs.
The Zinc-Gold-Silver Discovery was made following a Reverse Circulation (RC) drilling program which intersected a broad altered shear zone containing massive, semi-massive and disseminated sulphides.
The assay results contained the following maximum grades within the broader zones:
The Joint Venture’s geological and geophysical teams are extremely positive about the results from the drilling as well as the Down Hole Transient Electro Magnetics (DHTM) results supporting the potential for a much larger scaled system that has strike and depth potential.
In other recent news, the peak gold value at the project has been upgraded to 8.4 g/t gold (over a quarter of an ounce per ton gold). This new gold number came from the laboratory results conducted during resampling. As a result, this new gold number joins the other peak value of 8.8% Zinc designating the Kathleen Valley project as a mineral discovery for the Joint Venture.
In addition, an auger drilling program in September 2019 was very successful in identifying several highly anomalous gold trends to the northwest and northeast of the Kathleen Valley tenement, giving much scope for further exploration in the area.
The Kathleen Valley project (E36/876) is located north of Leinster in WA, falling squarely within the rich Mt Keith-Kathleen Valley-Leinster minerals belt, which conservatively represents US$100bn worth of metals, the 7sq km tenement is highly prospective for gold/copper, lithium/tantalum, nickel/cobalt and base metals.
Kathleen Valley is ideally located close to transport and energy infrastructure being just 40 kilometres north of the town of Leinster, close to pending and historical mines belonging to BHP, Western Areas (Nickel), Bellevue Gold (Gold/Copper) and Liontown Resources (Lithium/Tantalum).
Copper, Gold, Nickel and Tantalum at Kathleen Valley
Copper has been mined in the area since the 1890s with most of the early production coming from the Kathleen Valley (4 km north of the project area) and Sir Samuel (5 km south of the project area). The Joint Venture is searching for copper-rich gabbroic-hosted mineralisation.
Historical exploration within the tenement has also identified gold potential, with rock chip samples showing 4 g/t gold.
The Bellevue Gold Mine is to the south of the tenement and was one of Australia’s highest-grade gold mines producing around 800,000oz @ 15g/t gold between the late 1980s and 1997.
The tenement is ripe for nickel, with the Western Areas (ASX & TSX: WSA)-owned Cosmos-Odysseus deposit (10.4Mt @ 2.6% Ni) just 2km south east of the project and BHP’s Yakabindie nickel project (270Mt @ 0.53% Ni) just 10km to the north.
In addition, the project is highly prospective for Tantalum.
Tantalum is a highly-sought battery metal and semi-conductor used in mobile phones that is currently worth US$100K per tonne.