Fosterville South Exploration to Commence Trading on TSX Venture Exchange
Fosterville South Exploration to Commence Trading on TSX Venture Exchange
• High grade epizonal gold projects in two large 100% owned tenement packages and one
large group of tenement applications within the state of Victoria, Australia
• all three projects have historical high-grade, hard rock gold production but are under-
drilled and under-explored
• 1386 square km land package including a large property immediately south of and
contiguous with Kirkland Lake Gold’s Fosterville high-grade gold tenements
April 7, 2020. Fosterville South Exploration Ltd. (“Fosterville South” or the “Company”, FSX:TSX
Venture) is pleased to announce it s common shares will commence trading on the TSX Venture
Exchange on Tuesday, April 14th, 2020 under the symbol “FSX”.
Fosterville South has two large, 100% owned, high-grade epizonal gold projects and one large group
of tenement application s 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.
All three of Fosterville South’s properties (Lauriston, Providence and Golden Mountain) have had
historical gold production from hard rock sources despite limited modern exploration and drilling. This
premier land package was assembled over a multi-year period by one of Fosterville South’s founders
and Chief Operating Officer, Rex Motton, P.Geo. Mr. Motton was born in the area and spent his
teenage years prospecting throughout the belt, prior to obtaining his geology degree and working for
decades internationally in the exploration business. Mr. Motton assembled the land package that
now forms Fosterville South’s assets, starting to acquire this ground in early 2017.
Fosterville South completed financing privately, supported by top institutional investors and mining
professionals, and did not raise funds concurrent with this go public event. Under the Company’s last
completed financing, Mr. Eric Sprott, through 2176423 Ontario Ltd, a corporation which is beneficially
owned by him, holds 2,500,000 shares and is one of the largest shareholders of Fosterville South.
Fosterville South is well funded with over $6 million in cash to carry out an extensive drill program on
numerous high-grade gold prospects on its projects. Our experienced exploration team has been
working on the projects doing field work including soil geochemistry, sampling, geologic al mapping
and compilation of historic data in anticipation of the upcoming drilling program.
Figure 1 Fosterville South Project map
Lauriston Gold Project
Fosterville South's Lauriston Gold Project is a large land holding, within the same stratigraphic and
structural setting as the Fosterville gold mine. The tenement has an extensive history of hard rock and
alluvial gold production but limited modern exploration.
The Lauriston property is south of and adjoining Kirkland Lake’s Fosterville Gold Mine. The Fosterville
Gold Mine reported a measured and indicated resource estimate of 14,800,000 tonnes at 4.4 g/t gold
for 2,110,000 ounces of gold and an inferred resource estimate of 10,300,000 tonnes at 5.5 g/t gold
for 1,830,000 ounces of gold. The project produced 619,366 ounces of gold in 2019. The
mineralization at the Fosterville Mine is not necessarily indicative of mineralization on the Lauriston
Project.
Lauriston has a similar geological and structural setting and is on the same regional trend as the
Fosterville Gold Project and occurs along the western margin of the Selwyn Block. Bendigo style saddle
and trough reefs occur within the property as well as subvertical shear zone style gold and quartz vein
mineralization which occasionally have epizonal characteristics.
Figure 2 Lauriston Project Location Map
The Fosterville South property has metallogenic indications of Fosterville style epizonal gold deposits,
but has not been explored for these types of deposits, particularly as they were not recogni zed as to
their significance until recently.
Gold mineralization is hosted by Ordovician slates and sandstones in association with felsic dykes,
either with quartz veins or with disseminated arsenopyrite – pyrite ± stibnite.
The Lauriston district contains several recognized goldfields, including the Taradale, Malmsbury ,
Lauriston and Blackwood East gold fields that have produced over 233,000 ounces at a grade of 20.7
g/t Au until around 1914. Some minor production also occurred during the depression of the 1930s.
Mine Location
Total
Tonnes
(t) Total Au (oz)
Mined depth
maximum (m)
Grade (Au
g/t) Modern Exploration
Russell's Reefs Lauriston 44,923 33,403 330 22.8 Sparse drilling on the Northern Extension
Energetic Reefs Lauriston 54,667 31,626 114 17.7 No drilling
United Kingdom
Reefs Taradale 77,006 26,518 113 10.5 Two drill holes
Wyndham Reefs Lauriston 32,927 11,747 88 10.9 No drilling
Tommy Dodd Malmsbury 18,099 6,968 84 11.8 Three drill holes
Table 1 Significant gold producing mines at Lauriston
* The production noted above was obtained from State of Victoria Mining Surveyors and Registrar’s
quarterly reports from 1864 to 1891 and annual reports issued thereafter. All of the production
occurred within the Lauriston Property.
The Company has a llocated budget of approximately CDN$2.1 million aimed at initial exploration of
several prospects held within Fosterville South’s Lauriston tenement, with the majority of the
Lauriston budget dedicated to drilli ng during the next 12 months. The focus of the Company is to
search within the property for gold deposits analogous in style and type to the Fosterville gold mine
further north of Lauriston. These epizonal deposits are associated with the Devonian Tabberabberan
orogeny and have a characteristic Au-As-Sb metallogenic signature.
Over the past two months, the Company has been working at Lauriston doing infill and extension soil
geochemistry, in preparation for drilling. In particular, the New Trojan, Comet and O’Connell’s
prospects have yielded encouraging antimony and arsenic XRF soil results and drill programs are being
designed.
Figure 3 New Trojan Prospect XRF soil map
Providence Gold Project
Fosterville South has applied for two large exploration applications cover 650km2 that it calls the
Providence project. Primary epizonal gold deposits are found throughout the Providence project.
Gold mineralization is hosted by Siluro-Devonian sediments as well as in association with felsic dykes,
either with quartz veins or with disseminated arsenopyrite – pyrite ± stibnite.
These primary gold deposits are structurally related to the Selwyn Block, within the Costerfield
Domain and are associated with the Mid-Devonian Tabberabberan orogeny. A key feature of these
deposits is that they have a characteristic metallogenic signature of Au -As-Sb mineralization, which
act as a vector for finding the bonanza grade found at Fosterville.
The Providence property contains several recognized goldfields, including the Reedy Creek, Yea, Ghin
Ghin and Alexandra gold fields, within which there are several high-grade gold producers:
• Luckie Reefs at Alexandra with 36,000 oz at 39g/t Au to 122m depth
• Langridge’s at Reedy Creek with 20,620 oz at 56 g/t Au
• Doyle’s mine at Reedy Creek with 13,431 oz at 51 g/t Au
• Providence Reefs at Yea with 8,585oz at 33.6 g/t Au
The production noted above was obtained from State of Victoria Mining Surveyors and Registrar’s
quarterly reports from 1864 to 1891 and annual reports issued thereafter . All of the production
occurred within the Providence Property.
Within the Providence district, the Reedy Creek goldfield produced 63,558t for 48,944 oz Au at a grade
of 23.6g/t Au which is 68% of the gold produced from the whole division. Most of this goldfield lies
within the Providence project. Other goldfields such as Sunday Creek, Yea and Ghin Ghin also
contributed to the division’s production. The Luckie Reefs at Alexandra is the largest producing
prospect within the eastern part of the project. About 5km of strike of the Luckie Reefs corridor occurs
within the project, including the main producing mines.
The Reedy Creek gold field occurs on a northwest striking corridor of which 16.5km occurs within
Fosterville South’s tenement application. At the northwest end of this corridor BHP drilled an intrusion
related gold and antimony mineralized breccia pipe. This prospect is excised from the tenement but
illustrates the prospective nature of the corridor linking these two styles of mineralization.
The only significant drilling to have taken place within the project is from the Providence prospect a t
Yea and at various parts of the Ghin Ghin goldfield, which were undertaken by Perseverance
Corporation Ltd in the 1990s in the search for shallow open pit oxide deposits.
Initial encouraging drilling results were achieved at both these prospect areas with:
• Ghin Ghin drilling yielding:
o GGRC03 drill hole 38m @ 1.2 g/t Au
o GGRC07 drill hole 10m @ 2.9 g/t Au
• Providence drilling yielding:
o PP06 drill hole 8m @ 7.0 g/t Au from 34m
o PP13 drill hole 20m @ 0.85 g/t Au from 4m
o PP16 drill hole 2m @ 40.8 g/t Au from 48m
The drilling results noted above was obtained from reports filed by Perseverance Corporation Ltd. with
the State of Victoria under exploration licenses that they held.
Figure 4 Providence Project overview map
The applications that comprise the Providence project are applications only and Fosterville South has
not been granted the exploration licenses comprising the Providence project at this time.
Tallangalook (Golden Mountain) Gold Project
The granted exploration licence consists of 136km2 holds are variety of gold deposits, with the Golden
Mountain area with intrusion related gold deposits and epizonal orogenic gold – stibnite deposits such
as the Heyfield Reef and Star of the Glen Reefs.
The gold deposits are hosted by hornfels in the aureole of the Strathbogie Granite in the north of the
tenement or are located within the Siluro -Devonian sediments further to the south. The largest
producer within the Tallangalook goldfield was the Golden Mountain mine with a recorded yield of at
least 268kg Au from open cut working s, and over 4040kg of alluvial and eluvial gold from the
surrounding area. Smaller prospects occur nearby and most of the alluvium in the creeks had been
extensively mined for gold. There are several deposit groupings of various types within the tenement:
• Various intrusion related disseminated gold prospects in the metamorphic aureole:
o The western Black Ore and Morning Star group (1889-1895): 1.7kg Au (55 ozs) from
759t
o The central Mead/Golden Mountain Group (1878-1901): 268kg (8615ozs) from
90208t
o The eastern Perseverance & Black Charley group (1880s): trial crushing of 4.2 ozs
from 128t
• Gold – stibnite epizonal prospects:
o Star of the Glen Group (1890-1894): 2349ozs at 18.0g/t Au from 3996 tons to 46m.
o Heyfield Reef – Unknown production of stibnite gold concentrate.
The production noted above was obtained from J.B. Griffiths Report in 1976 from Department of
Manufacturing and Industry Development Expired Exploration Reports File. All of the above
deposits are located within the Golden Mountain Property.
Reconnaissance rock chip sampling at Heyfield Reef and Star of the Glen has been undertaken in order
to assess the potential for high-grade mineralization. The main adit dump at the Heyfield reef yielded
a quartz grab sample with 20.1 g/t Au. Star of the Glen also reported several high-grade gold samples
within the central part of the historic working and with a peak of 152 g/t Au.
Fosterville South has a budget of approximately $1.9 million dedicated to exploration work, with an
emphasis on drilling, at Golden Mountain in the upcoming year.
Conclusions
Fosterville South has a highly experienced management team and Board, with both proven strong
discovery track records and capital markets expertise. While the capital markets and public company
administration components of Fosterville South are based in Canada, the key team members in terms
of operations and exploration are Australian.
Board, Management and Key Advisors
James Hutton, Chairman of the Board of Directors
Bryan Slusarchuk, Chief Executive Officer and Director
Rex Motton, Chief Operating Officer and Director
Jonathan Richards, Chief Financial Officer
John Lewins, Director
Robert McMorran, Director