Fosterville South Acquires Walhalla Belt Project
Fosterville South Acquires Walhalla Belt Project
VANCOUVER
,
May 21, 2020
/CNW/ -
Fosterville South Exploration Ltd.
("Fosterville South" or the
"Company", FSX:TSX Venture; FSXLF: OTC Markets; 4TU:
Germany
) is pleased to announce that it has
expanded its portfolio of high quality gold projects with the consolidation and acquisition of the 547 square
kilometre Walhalla Belt Project in
Victoria, Australia
.
Highlights:
Walhalla Belt Project has been consolidated by Fosterville South into a major 547 sq km land
package.
Total recorded historic hard rock gold production from the project of 1,510,309 ounces of gold at a
recovered grade of 33.59 g/t gold.
Dozens of high priority exploration targets including former mines, most with no modern drilling.
Rex Motton, COO of Fosterville South states,
"Consolidating this prospective high-grade gold field is a
significant achievement for Fosterville South. The Walhalla Belt Project contains one of the most
compelling exploration targets in the state of
Victoria
with opportunities to extend past high grade
mineralization at depth and along strike. We suspect that additional high-grade mineralization remains
at Cohen's reef with prior focus on the +33 g/t gold shoot. The acquisition of these tenement
applications is a major coup for our operational and exploration team where preparation meets
opportunity."
The Walhalla Belt Project
The Walhalla Belt Project has now been consolidated by Fosterville South into a major land holding, with 6
tenement applications composed of 547km2 and containing 91 hard-rock prospects with 31 of them
having production figures from the late 19
th
and early 20
th
centuries.
The total recorded gold production from these 31 prospects (located within 5 tenement applications)
amounts to 1,510,309 ounces at a recovered grade of 33.59 g/t Au (GeoVic
o
,2020).
o
GeoVic is a State Government of Victoria database
Licence
Application
Area
km2
Hardrock
Prospects
Producing
Mines*
Recorded Au
Production (oz)
Total (t)
Au g/t
Total
Drill
holes in
EL
Pinnacles
103
5
3
4,537
8,539
16.26
0
Walhalla North
92
13
5
5,561
6,552
25.98
0
Walhalla
19
50
12
1,458,750
1,293,090
34.53
73
Harbinger
34
7
4
19,692
19,870
30.34
1
Enoch's Point
291
14
7
21,769
48,462
13.75
4
TOTAL
539
89
31
1,510,309
1,376,513
33.59
* those with recorded production
As part of the Walhalla Belt Project, the Walhalla licence application includes the Cohen's Reef with a past
production of 1,479,851 oz from 1,429,298 tonnes at an average grade of 32.2 g/t Au (GeoVic, 2020).
The production at Cohen's Reef came from a single mineralized shoot mined to
1120m
depth.
Mineralisation was controlled by the steeply west dipping Cohen's Shear zone, which was reactivated
during gold mineralisation in the Middle Devonian Tabberabberan orogeny. This is the same age
mineralisation as
Fosterville
and elsewhere within the central Melbourne Zone. The known extent of
Cohen's Reef is approximately 1500 metres long and 1134 metres deep, along the valley of the township
of Walhalla. The extensive and continuous reef is predominantly a laminated quartz-carbonate vein with
some associated stockwork veins, and in places incorporates sheared dyke and meta-sedimentary rocks.
The reverse fault lies along the margin of an extensive but narrow dyke, within a complex fifty-metre-wide
shear zone. Gold mineralisation is mainly in laminated quartz veins in the reverse faults, associated with
pyrite, arsenopyrite, galena and stibnite. Pyrite alteration envelopes extend to
10m
into the host rocks,
while more abundant arsenopyrite extend
2m
.
Historical production along Cohen's Reef concentrated on visible gold within the laminated reef system.
Recent assay results have highlighted the increased levels of visible gold, and the presence of
disseminated gold, especially along dyke margins. The ten highest gold assay results (5 – 12 g/t) from
recent drilling in proximity to Cohen's Reef are found in laminated veins within or on the margins of dyke;
or in laminated or brecciated veins within meta-sedimentary rock, predominantly shale (Goldstar, 2007).
Historic mine plans indicate mineralisation at Cohen's Reef remains open at depth (Figure 1).
Apart from Coopers Creek PGE project and the Walhalla licence applications, there are a total of 5 drill
holes within the remaining goldfield areas amounting to 520km2 of the total 547km2. The drilling at
Walhalla and in the vicinity of the Cohen's reef amounts to 73 drill holes which is largely composed of
various shallow holes to
200m
, with only 3 holes greater than
200m
deep and the deepest of which is
537m
.
Within the entire Walhalla – Woods Point Belt significant gold production has come from faulted dykes in a
NNW-trending zone from south of Walhalla to Eildon. The dykes are Middle Devonian and trend parallel to
the regional structural grain. They are usually only a few metres thick but several have bulges up to
120 m
wide and
500 m
long. Best bulge type examples are the A1 (Figure 2), Loch Fyne and Morning Star mines
(all of which are located outside Fosterville South's Walhalla Belt Project). Reverse faults resulting from
east–west contraction form conjugate sets. Gold is contained in quartz–carbonate veins in these
conjugate faults (ladder veins), and is associated with pyrite, arsenopyrite, sphalerite, galena, bournonite,
tetrahedrite, jamesonite and stibnite. Thin chlorite–sericite–pyrite–carbonate–hematite alteration
envelopes along veins overprint deuteric and regional propylitic alteration of the dykes.
Drilling at A1 mine (not a Fosterville South asset) has confirmed that these dyke host rocks may contain
significant gold mineralization that was previously not assayed or mined.
Fosterville South leveraged the significant experience and expertise of its Chief Operating Officer, Rex
Motton, P. Geo., to acquire these highly prospective six tenement applications that comprise of the
Walhalla Belt Project. As the land package was acquired through tenement applications, the acquisition
was minimal and non-dilutive to shareholders at a total of cost of approximately AUD
$15,000
and the
state of
Victoria
requires approximately AUD
$220,000
of expenditures to be incurred on the Walhalla Belt
Property over the next two years. Shareholders of Fosterville South now have positive exposure to
several large and diverse goldfields across the state of
Victoria
.
Fosterville South has recently started drilling at the Golden Mountain Gold Project and is preparing to
commence drilling the Lauriston Gold Project.
About Fosterville South Exploration Ltd.
In addition to the Walhalla Gold Belt described in today's News Release, Fosterville South has two large,
100% owned, high-grade epizonal gold projects called the Lauriston and Golden Mountain Projects and
one large group of tenement applications called the Providence Project in the state of
Victoria, Australia
,
including 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
.
Five of Fosterville South's properties (Lauriston,
Providence
,
Golden Mountain
, Timor and Avoca) 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 Rex 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.
Figure 1 Cohen's Reef Longitudinal Section (CNW Group/Fosterville South Exploration Ltd.)
Figure 2 The Walhalla Belt A1 gold mine dyke mineralization (not a Fosterville South asset). The
mineralization on adjacent and/or nearby properties is not necessarily indicative of mineralization hosted
on Fosterville South’s property. (CNW Group/Fosterville South Exploration Ltd.)
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SOURCE
Fosterville South Exploration Ltd.
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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 21-MAY-20