Delaney Gold Project - Georgetown, North Queensland (100% CUU)
The Delaney Gold Project is located 22 km north of Georgetown and is one of a number of gold prospects located along the North trending Delaney Fault, including the Electric Light Deposit approximately 2.5 km to the south. The Delaney Gold Project is located in a substantial offset in the north trending fault. Anomalous soil geochemistry was defined over a strike length of 1,000 metres and grab sample results returned between 13 g/t gold and 39 g/t gold. Reverse Circulation drilling along the grid returned anomalous results from the northern section whilst the southern section of the soil anomaly remains untested.
The Delaney Gold Project bears many similarities to the Electric Light Gold deposit and further work to establish controls on the higher grade mineralisation intersected is warranted. The figure below shows the location of the 18 historical drillholes relative to gold anomalies in soils. There is significant potential within the project area for discovery of new areas of high grade gold mineralisation as well as for extending the known mineralisation to define a JORC resource with a minimal amount of exploration expenditure.
In September 2011 Callabonna announced that it has entered into a Farm-in Agreement with Planet Metals Limited ('Planet') covering Callabonna’s three gold exploration tenements in the Georgetown district.
The key terms of the farm-in agreement are:
- Planet can earn a 51% interest in all three tenements (Hatch EPM 18181, Oak River EPM 17945 & Central EPMA 18699) by spending $750,000 in total over a period of 2 years and 10 months. Planet’s interest will cover all minerals for EPM 18181 and EPMA 18699 whereas for EPM 17945, Planet’s interest covers only gold, precious and base metals, but excluding rare earths and uranium.
- A minimum of $150,000 must be spent on exploration within 10 months of signing the agreement, including a 1,000 metre drill program. Planet has the option to withdraw from the agreement after this minimum expenditure requirement has been met.
- After satisfying this minimum expenditure requirement, Planet may elect to earn-in to the tenements by spending $600,000 within a further 2 years, of which a minimum $200,000 must be spent in the first year.
Planet has advised that it intends to focus its immediate exploration and drill program on the Delaney Gold Project (within Hatch tenement EPM 18181). Some geochemical sampling and mapping is also proposed within the Oak River tenement.
