VANCOUVER, BC, Aug. 5, 2020 /CNW/ - Fosterville South
Exploration Ltd. ("Fosterville South" or the
"Company") (TSXV: FSX) (OTC Markets:
FSXLF) (Germany: 4TU) is pleased
to announce that it has expanded its portfolio of high quality gold
projects with the acquisition of the 36km2 square
kilometre Beechworth Gold Project in Victoria, Australia held within EL4697 &
RLA006013 by Northern Mine Ventures P/L.
Highlights:
- Numerous drill ready gold prospects with orogenic style
mineralization throughout the Beechworth Gold Project
- Contains significant goldfields of Hillsborough, Hurdle Flat and Happy Valley
with over 100,000 ounces of historical gold production, including
43,477o ounces of hard-rock production at 15.7 g/t Au
within the tenement.
- Past exploration drilling includes W03: 8m @ 8.88 g/t Au from 18m and W06: 10m @
9.58 g/t Au from 34m of downhole
intervals.
- Channel sampling of outcrops include 10
m at 23.7 g/t, 5 m at 25.9 g/t
gold and 10 m at 7.16 g/t gold.
Rex Motton, COO of Fosterville South states, "The Beechworth
Gold Project is a drill ready granted licence that contains
numerous near surface exploration targets. With historic
production focused on numerous high-grade gold shoots, we
anticipate that drilling will confirm similar mineralization at
depth at many of the prospects. The acquisition of a drill
ready high-grade gold project provides significant exploration
opportunity for the company."
Fosterville South now has a total of 3,708 square kilometres of
granted exploration tenements and applications which have been
assembled over a multi-year period
(https://fostervillesouth.com/projects/).
The Beechworth Gold Project
The Beechworth Gold Project provides a drill ready high-grade
gold project northeast of the Company's Tallangalook Project, in
north-eastern Victoria. The Beechworth Project consists of
one granted Exploration Licence and one Retention Licence
application covering the same area and totalling 36
km2. Most prospects were mined in the mid to late
19th and early 20th centuries.
Extensive channel sampling has occurred on the numerous
prospects at the Beechworth Gold Project as follows:
- Wallaby Prospect. 25 metres at 7.05 g/t gold; and
5 m at 25.9 g/t gold.
- Bon Accord Prospect. 10 metres at 23.7 g/t gold
- Kingston Prospect. 10 metres at 7.16 g/t gold.
- South Taff. 6.6 metres at 2.72 g/t gold.
The historical mines are fault related with a few large scale
regional primary fault structures generating these sub-order fault
systems. The gold mineralization is potentially enhanced by the
intrusion of nearby granites. The Hurdle Flat, Hillsborough, Bowman's Forest and Happy Valley
goldfields have all developed along the flanks of the various
intrusive granitic rocks. Some historic mines include
high-grade open cuts ('glory holes') such as at the Taff, Homeward
Bound, Wallaby, Kingston,
Bon Accord and Bangor Reefs. These
larger scale prospects offer significant scope for high grade gold
mines as ore shoots on pipe like bodies tens of meters wide. The
Wallaby mine has broad zones of mineralization surrounding the
existing open pit with channel sampling and minimal drilling by
Freeport and Intrepid Resources,
respectively.
Only a few of the prospects have had reconnaissance drilling,
such as at the Kingston (W03:
8m @ 8.88 g/t Au from 18m) and Hope prospects (W06: 10m @ 9.58 g/t Au from 34m). In all, 21 RC percussion holes were drilled
at the Kingston, Hope, Rechabite
and Wallaby prospects for a total of 1316m for an average depth of 63m. Drill holes were placed at various
orientations and estimated true widths are not possible. Follow up
geochemistry and drilling are planned.
The Beechworth project lies within the Tabberabbera Zone of the
Lachlan Fold Belt in Victoria and
is immediately west of the regional scale Kancoona Fault Zone,
which divides it from the Omeo Zone. The Tabberabbera Zone is east
of the Melbourne Zone and is in north-eastern Victoria. The mesozonal mineralisation is
typical of Ordovician hosted orogenic gold deposits. They are
characteristically associated with deformed (compressed, folded and
faulted) and metamorphosed mid-crustal blocks, particularly in
proximity to major crustal structures such as major faults or
basement shear zones.
Terms of Transaction
The Company acquired the Beechworth Gold Project pursuant to the
terms of a purchase agreement between the Company and Northern Mine
Ventures Pty Ltd. ("NMV"). Under the terms of the agreement,
the Company paid AUD $50,000 to NMV
and agreed to pay an additional AUD $250,000 on the date that the granted Exploration
Licence is converted to a Retention Licence. The Company also
agreed to incur AUD $130,000 in
exploration expenditures on the project within 90 days. The
Company granted a 2.5% NSR to NMV, which may be repurchased with a
one-time payment of AUD $2,000,000.
About Fosterville South Exploration Ltd.
Fosterville South has two large, 100% owned, high-grade epizonal
gold projects called the Lauriston and Golden Mountain Projects, a
large group of tenement applications called the Providence Project
and a large group of recently consolidated tenement applications
called the Walhalla Belt Project, all in the state
of Victoria, Australia. The
Fosterville South land packaged, assembled over a multi-year
period, notably includes a 600 sq. km property immediately to the
south of and within the same geological framework that
hosts Kirkland Lake Gold's Fosterville tenements.
Additionally, Fosterville South recently acquired three
gold-focused projects called the Moormbool, Timor and Avoca
Projects, which are also located in the state of Victoria,
Australia.
Most of Fosterville South's properties including
Lauriston, Providence, Golden
Mountain, Timor, Avoca and those within the Walhalla Belt
have had historical gold production from hard rock sources despite
limited modern exploration and drilling.
Qualified Person
The technical content of this news release has been reviewed,
verified and approved by Neil Motton, P. Geo., COO and
Director of Fosterville South; a qualified person as defined by NI
43-101. Historical records were verified by reviewing annual
reports from previous owners of the licenses by the Qualified
Person.
On behalf of the Company
Rex Motton
Chief Operating Officer and Director
Forward-Looking Statements
Information set forth in this news release contains
forward-looking statements that are based on assumptions as of the
date of this news release. These statements reflect management's
current estimates, beliefs, intentions and expectations. They are
not guarantees of future performance. Fosterville South cautions
that all forward looking statements are inherently uncertain and
that actual performance may be affected by many material factors,
many of which are beyond their respective control. Such factors
include, among other things: risks and uncertainties relating to
Fosterville South's limited operating history, its proposed
exploration and development activities on is Lauriston and Golden
Mountain Properties and the need to comply with environmental and
governmental regulations. Accordingly, actual and future
events, conditions and results may differ materially from the
estimates, beliefs, intentions and expectations expressed or
implied in the forward-looking information. Except as required
under applicable securities legislation, Fosterville South does not
undertake to publicly update or revise forward-looking
information.
Neither TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in the policies of the Exchange)
accepts responsibility for the adequacy or accuracy of this
release.
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SOURCE Fosterville South Exploration Ltd.