Fosterville South Acquires Beechworth Gold Project
Fosterville South Acquires Beechworth Gold
Project
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 36km
2
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 43,477
o
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 km
2
. Most prospects
were mined in the mid to late 19
th
and early 20
th
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.
View original content to download multimedia:
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%SEDAR: 00048753E
For further information:
Adam Ross, Investor Relations, Direct : (604) 229-9445, Toll Free: 1(833) 923-
3334, Email: [email protected]
CO: Fosterville South Exploration Ltd.
CNW 08:00e 05-AUG-20