Join today and have your say! It’s FREE!

Become a member today, It's free!

We will not release or resell your information to third parties without your permission.
Please Try Again
{{ error }}
By providing my email, I consent to receiving investment related electronic messages from Stockhouse.

or

Sign In

Please Try Again
{{ error }}
Password Hint : {{passwordHint}}
Forgot Password?

or

Please Try Again {{ error }}

Send my password

SUCCESS
An email was sent with password retrieval instructions. Please go to the link in the email message to retrieve your password.

Become a member today, It's free!

We will not release or resell your information to third parties without your permission.

The New Australian Gold Rush: Exciting Possibilities - Amazing Potential

Jon Brown Jon Brown, Stockhouse
3 Comments| July 23, 2021

{{labelSign}}  Favorites
{{errorMessage}}


(Image via Outback Goldfields Corp.)

“This is a legendary district that's had over 80 million ounces of gold produced historically.”

- Chris Donaldson, CEO, Outback Goldfields Corp. (CSE: OZ).

Click to enlargeThere is a rich mining history that connects Canada and Australia. Vast mineral resources are abundant across both countries, along with solid infrastructure, excellent mining codes and friendly legislation. There is significant gold production on deck from world class mineral belts in both countries.


In Australia, the State of Victoria is seeing a new modern gold rush of its own, with production and exploration at record levels, there is a resurgence underway around its gold industry.


Enter: Outback Goldfields Corp. (CSE: OZ, OTCPK: OZBKF, Forum) - a Canadian based exploration mining Company that holds a land package of four highly prospective gold projects located proximate and adjacent to Toronto-based Kirkland Lake Gold’s (TSX: KL) Fosterville Gold Mine in Victoria, the world’s highest grade and lowest cost gold mine. Outback’s initial Phase 1 exploration program is now underway on three of the Company’s four projects.

Victoria’s goldfields are in the midst of a modern-day gold rush and is home to some of the highest grade and lowest cost mining in the world. The race is on. The staking rush in this High-grade, low-cost mining district is seeing major companies surround Outback’s working fields, which is a large land package in a friendly jurisdiction. Following the path of previous success is likely to pave the way to new riches for Outback Goldfields.


(Image via Outback Goldfields Corp. Click to enlarge)


Background:

In the 1850s, the State of Victoria was one of the leading sources of gold in the world but had only seen modest exploration activity since that time. Now there is an opportunity for a company to unearth a major resource and set up production in this first-tier jurisdiction rather seamlessly. It is likely that there are deposit types which were either unrecognized during the 19th century or were recognized but were uneconomic at the time.

The renaissance that Victoria’s gold industry has been seeing is supported by a decision by the State Government to release around 1,500 sq km of land within the North Central Goldfields region for exploration.



(Image via Outback Goldfields Corp. Click to enlarge)


Historically, the Victorian Goldfields have been explored for mesozonal (Ballarat style) gold deposits. However, with the discovery of epizonal (Fosterville style) mineralization at the Fosterville gold mine’s Swan Zone, a new opportunity has emerged to explore in previously overlooked areas for Fosterville style mineralization. It is now understood that Fosterville style systems can develop extremely high-grade, large, free gold deposits. The Melbourne and Eastern Bendigo zones host almost exclusively all historic Fosterville style gold deposits.


(Image via Outback Goldfields Corp. Click to enlarge)

This has provided insight into a new search space for high-grade gold mineralization below historic near-surface gold targets. Outback Goldfields controls a large, prospective tenement package in the Melbourne Zone strategically located near the Fosterville mine with documented gold occurrences.

Projects:

The Company’s four key assets cover a total land package of 11 sq. km (1,100 hectares).

The Glenfine project is hosted in a similar structural setting to Fosterville and is associated with a similar geochemical signature of elevated gold, arsenic and antimony along a structural trend and is hosted within similar Paleozoic sediments and proximal to the transition between Early and Late Devonian intrusions.

In early June 2021, Outback Goldfields satisfied the exploration expenditure requirements to acquire 51% ownership in the Glenfine project. The company’s other three properties are 100% owned.

In a media release on this news for investors, the Company’s Chief Executive Officer, Chris Donaldson commented on the team’s top exploration activities on the Glenfine project.

“It was the most drill-ready of all our properties and had recently-discovered highly prospective mineralization. We have now spent the required $1 million on exploration activities to earn a 51% ownership interest and have begun the administrative process to register our ownership interest. Outback has the option to further increase to 80% ownership over the next 2.5 years, which would put Glenfine closer in-line with the other 3 properties that are all 100% owned.”

Key points of the earn-in:
  • $1 million spend to acquire 51% ownership, now completed
  • Additional $2 million spend to acquire 80% in the next 2.5 years
  • Once 80% ownership is acquired, options are to enter into an 80/20 JV or negotiate to own 100%

Outback is more than halfway through its planned 4,000-metre drill program on the Glenfine project. Outback has now completed over 2,200 meters of diamond drilling and over 850 meters of reverse circulation drilling focused primarily along the Glenfine South to Reef 2 corridor.

Drilling has tested for mineralization continuity up-dip and down-dip along Reef 2 and has also tested for mineralization continuity along strike between the Glenfine South Mine and the Reef 2 targets. Initial results were highlighted by an interval of 17.30 meters at 2.66 grams per tonne (g/t) gold in OGA0005. Further results from the remaining holes are pending and will be released once the assays are received from the lab and have been interpreted.

Outback is in the process of mobilizing the drill rigs from the Glenfine South - Reef 2 corridor to the British Banner target, 7.5 km to the north. Drilling at British Banner will test for along-strike continuity of north-trending, gold-bearing quartz veins. Previous exploration drilling at British Banner intersected numerous zones of gold mineralization such as 3.8 metres of 8.96 g/t gold with 1.3 metres of 23.4 g/t gold in hole CCD01 (reported in Mele, 2016). Mineralization at British Banner remains open in multiple directions.


(Yeungroon project map via Outback Goldfields Corp. Click to enlarge)

The 698 km2Yeungroon property is centered on a 30 km northwest trending fault-system termed “the Golden Jacket Fault”, host to local high-grade gold mineralization. High-grade mineralization previously mined at the Golden Jacket mine remains open in all directions, with numerous open-ended, north-trending arsenic-in-soil anomalies that are untested and represent priority targets.

A property-scale high-resolution airborne magnetic survey was recently completed and scanned a full interpretation as it flew over the property. Soil geochemical surveys and top of bedrock RAB drilling will be completed to investigate priority areas and refine drill targets.

In June, the Company expedited its exploration program with a focus on investigating the structural setting and associated geochemical footprints of known reef-hosted gold mineralization as well as to define new targets worthy of drill testing.

Speaking on this news, CEO Donaldson noted that with all the excitement from recent discoveries in the Victorian Goldfields lately, the time was right to accelerate exploration efforts across the highly prospective Yeungroon property.

“Outback is now actively exploring on three of its four properties. At Yeungroon, the presence of widespread historic alluvial and reef-centred gold mines on the eastern side of the property with documented gold nugget occurrences, suggest a strong potential for local reef-hosted gold mineralization. Our local Ballarat-based technical team have already started prospecting and soil sampling these areas with the primary goal of defining new drill targets. The high-grade, historic Golden Jacket mine on the western side of the property remains untested and represents a priority area for our upcoming grid-based RAB drill program.”

At the Wedderburn Goldfields, previous work identified numerous, untested, north-trending arsenic-in-soil anomalies considered prospective for reef-hosted gold mineralization (see image above). Follow-up soil geochemical grids, north and south of these anomalies as well as along parallel structures will be completed.


(Ballarat Westproject map via Outback Goldfields Corp. Click to enlarge)

The 448 sq km Ballarat West property is adjacent to major goldfields – Ballarat, Clunes and Creswick with historic Au production totally 17.3 Moz Au1. There are widespread deep lead mines that cover most of the tenement, which suggests the potential for local reef-hosted gold mineralization. These Local reef occurrences (e.g., Mitchells and Grassies) are where Ordovician rocks are exposed through widespread cover. Targets on the project have not seen any modern exploration, while prospecting and soil-grids across areas of known prospective and mineralized Ordovician rocks to generate drill targets.

In June 2021, Outback commenced a systematic exploration program on Ballarat West in the central Victorian Goldfields.

The Ballarat-based exploration team has identified multiple prospective areas of focus for Phase 1 exploration (e.g., Mitchells and Grassies targets, see image above), based on a compilation and review of all regional and property-scale geological, geochemical and geophysical data.

The program will consist of geological mapping, rock-chip sampling and soil geochemical surveys. Follow-up ground-based geophysical surveys such as induced polarization (IP) and gravity will be completed and informed by results from the geochemical surveys. These surveys will be concentrated along and across known and inferred prospective structures that transect Castlemaine Group rocks, host to the nearby Ballarat, Clunes, Haddon, and Creswick goldfields.

The exploration team is also engaged in procuring land holder access agreements in areas deemed strategically important for the Phase 1 exploration program.

CEO Donaldson added that more than 17 Moz of gold have been produced within 10 km of the property, however, Ballarat West remains completely underexplored due to widespread, yet shallow cover.

“Our systematic approach to exploration at Ballarat West will be aimed to fully investigate the high-grade gold potential of the asset with the goal of defining new drill targets. The Victorian Goldfields are experiencing a modern-day gold rush and Outback is ideally positioned to make the next big gold discovery.”

The Silver Spoon property is a new project, adjacent to Kirkland Lake, Newmont, and the Northcentral auction block. Located within the project is the Crosbie prospect, a 900 metre by 300 metre footprint in-soil anomaly that has yet to be systematically drill tested. Geological mapping, prospecting, soil geochemical surveys and ground-based geophysical surveys (magnetics and gravity) have been proposed by the team to refine drill targets.

Investment summary:

Outback Goldfields is executing a long-term plan with an eye on this year and beyond. It is a rather simple strategy – continue to explore the current properties on deck and find the next “Fosterville”. These projects range from advanced stage exploration, drilling on known mineralized structures, all the way back to more greenfield exploration on the Ballarat West property, where no work to penetrate that shallow basalt cover has ever been historically done. A key goal for the team was to keep progressing each project up the pipeline.


(Outback Goldfields Corp. stock chart. Click to enlarge)


This is an attractive entry point in high value potential assets for investors who are new to the gold scene and want to take advantage of its recent bull run, to seasoned investors looking for a new play in the market.

Outback Goldfields is well financed for this exploration year, having raised $11 million late last year. Drilling equipment is on site and already turning out exciting results. This is an ideal time for investors to deepen their due diligence into this Australian gold opportunity and with an exploration program in full swing the stage is set for even more exciting news to come in the weeks and months ahead.

For more information, visit outbackgoldfields.com.



FULL DISCLOSURE: This is a paid article produced by Stockhouse Publishing.


{{labelSign}}  Favorites
{{errorMessage}}

Comments

No comments yet. Be first to comment!

Leave a Comment

You must be logged in to be able to post a comment.

Get the latest news and updates from Stockhouse on social media

Follow STOCKHOUSE Today