FSX to Acquire Significant Papua New Guinea Mineral Exploration Land Package
FSX to Acquire Significant Papua New Guinea Mineral
Exploration Land Package
VANCOUVER, BC
,
April 19, 2023
/CNW/ - Fosterville South Exploration Ltd. ("Fosterville South" or "FSX") or (the "Company") (TSXV:
FSX) (OTCQX: FSXLF) (
Germany
: 4TU) is pleased to announce that it has entered into an agreement with privately held Wild Dog
Resources Inc. ("WDR") to acquire a significant 2166 sq. km mineral exploration land package in
Papua New Guinea
("PNG") including
multiple Exploration Licenses ("EL") and Exploration License Applications ("ELA").
Highlights:
2166 sq. km land position assembled via acquisition of a variety of EL and ELAs
including 614 sq. km project contiguous with and SE of K92 Mining Inc exploration tenements
including 130 sq. km project contiguous with and NW of K92 Mining Inc. tenements, 10km from mining operations
PNG EL and ELAs will compliment extensive gold land package of FSX in
Australia
The total PNG land package to be acquired by FSX includes both early stage and advanced stage exploration targets with high grade
epithermal vein and porphyry style mineralization present. FSX has a significant cash position and therefore, post-transaction, will be well
positioned to advance these projects on the ground following up the substantial amount of fieldwork and development of drill targets
already completed by WDR over the past two years. FSX team members have significant experience operating within Southeast Asian
island arc epithermal and porphyry mineralization environments, and specifically in PNG.
FSX CEO
Bryan Slusarchuk
states,
"
Papua New Guinea
is home to multiple world class mining, development and exploration projects
and the country hosts some of the most incredible geology on earth. Through the rapid growth of K92 Mining in PNG, the recent
announcement regarding Wafi-Golpu moving forward and of course the ongoing corporate discussions between Newmont and Newcrest,
the amazing mineral potential of PNG is becoming more widely known. Many shareholders of FSX have invested in the PNG mining
sector and we are confident they will share management's enthusiasm for this acquisition.
WDR has invested significant capital and time acquiring and advancing these assets in PNG and their hard work and strong technical
execution both on the ground and corporately has put in place an excellent foundation for success as we move forward."
WDR CEO
Alan Martin
, states, "WDR has assembled a commanding land position within the heart of one of the world's best regions for
gold and copper exploration. Putting together these projects, developing excellent community relations and then advancing targets
through fieldwork has put WDR in a position to now take the next step in PNG. Through this transaction with FSX, we are emerging as a
company with a very strong cash position to deploy on the ground and a team with a track record of success in PNG within a superb
share structure. Current WDR shareholders become large shareholders of the combined entity and we look forward to working together
within this well funded entity to unlock the potential of the assets, exploring for Tier 1 Copper-Gold deposits in PNG."
Figure 1. Papua New Guinea Project Location Map (CNW Group/Fosterville South Exploration Ltd.)
Kainantu Regional Geology, PNG
The Kainantu district is located within the New Guinea Thrust Belt, close to its northern contact with the Finisterre Terrane. The contact is
marked by the northwest trending Ramu-Markham Fault, a major suture zone that marks the northern margin of the Australian Craton. The
New Guinea Thrust Belt records an early Miocene or older ductile, tight folding event that was followed by middle Miocene intrusions. Late
Miocene regional scale low-angle thrust faulting followed, associated with the collision of the Finisterre Terrane. The belt is characterised
by a number of north-northeast trending fault zones that commonly host major deposits (K92 Mining).
Locally, the Kainantu area is underlain by greenschist to amphibolite facies metamorphic rocks of the Early Miocene Bena Bena Formation,
which are unconformably overlain by the Miocene age Omaura Formation consisting of volcano-sedimentary units and limestone lenses.
The overlying Yaveufa Formation comprises basaltic and andesitic flows, agglomerates, volcanoclastic sandstone and limestone. The mid-
Miocene Akuna Intrusive Complex consists of multiple phases ranging from olivine gabbros, dolerites, hornblende gabbros and biotite
diorites to granodiorites. Late Miocene age Elandora Porphyry intrusions and breccias are associated with mineralization and occur within
proximity to a major north-northeast trending transfer structure.
Known mineralisation in the area consists of gold and copper skarn deposits, porphyry copper deposits, shear-hosted gold deposits,
epithermal vein deposits and gold placer deposits.
Over 35 hard rock and 18 gold placer deposits are known within the area. Of significance are the Kathnell shear-hosted auriferous quartz
veins; such structurally controlled veins may be more widespread than proposed previously and offer a new exploration target (Downes,
1993).
The Kainantu Gold Mine, in
Eastern Highlands
province,
Papua New Guinea
, is a newly discovered and significant example of diverse Cu-
Au mineralisation styles in a porphyry mineral system. K92 Mining owns and operates Kainantu, and in
March 2023
their stated resources
at the mine were 2.6 Moz at 9.8 g/t AuEq (Measured and Indicated), and 2.9 Moz at 9.2 g/t AuEq (Inferred). Furthermore, the Inferred
Resource at the K92 Blue Lake porphyry deposit is stated as 10.8Moz at 0.61 g/t AuEq. Mineralization on the property includes Au, Ag
and Cu occurring in low sulphidation epithermal Au-telluride veins, Au-Cu-Ag sulphide veins of Intrusion Related Gold Copper ("IRGC")
affinity, less explored porphyry Cu-Au systems and alluvial gold.
The mineralization at the Kainantu Gold Mine is not necessarily
indicative of mineralization on the WDR mineral properties
Arau Project, Kainantu, PNG
The Arau Project consists of one EL2651 and one ELA located in Kainantu region,
Eastern Highlands Province
, PNG, which are
immediately east of and adjoining the Kainantu gold mine owned by K92 Mining Ltd.
Initial exploration work by previous operators has identified two potential deposit types at the project:
Epithermal gold (Sabudia Hill, Onga Hill and Erandora prospects) and
Copper-gold porphyry prospects (Mt.
Victor, Mt.
Aiyonka, Ebitara and P1 prospects).
Within the licence area, the Mt. Victor Prospect (copper-gold porphyry target) covers an area of
800m
by
400m
and previous drilling
suggests that the prospect area is a multiple phase intrusive complex that is copper and gold mineralized. It is a drill ready prospect in
which previous channel sampling has identified the following strong gold grades:
38m
@ 2.64 g/t Au
12m
@ 5.5 g/t Au
18m
@ 2.4 g/t Au
10m
@ 3.7 g/t Au.
These channel samples are in the central part of the Mt Victor prospect southwest of the former Mt Victor gold mine. Previous drilling was
carried out in the 1980s, and all drillholes presented were vertical, which may not have been appropriate for the subvertical fault zones
present within the prospect.
Hole ID
E*
N*
Depth
From (m)
Length (m)
Au g/t
Cu ppm
Notes
CRD58
385177
9291680
64.5
0
64.5
0.18
106
granodiorite intruded by diorite
DDH89-1
384650
9291308
260
234
5
0.85
NA
visible disseminated copper mineralization
DDH89-2
384965
9291825
300
43
10
1.10
NA
under review
DDH89-3
384873
9291562
300
213
10
1.20
NA
under review
MVD07
384746
9291253
52.8
0
52.8
0.10
384
altered pyritic diorite
MVD08
384831
9291327
30
16
14
0.19
373
argillic altered QFP
MVD09
384853
9291333
36
34
2
0.29
NA
epidote altered intrusive
MVD20
384900
9291345
75
0
75
0.34
304
argillic altered brecciated porphyry
MVD21
384890
9291353
48
0
48
0.41
329
diorite/QFP brecciated contact
MVD36
385032
9291456
24
22
2
14.70
463
altered pyritic porphyry
MVD40
384994
9291435
38
0
38
3.10
1400
silica epidote altered porphyry
MVD46
384932
9291388
34.5
15
19.5
0.33
117
epidote pyrite altered porphyry
MVD50
385068
9291469
29
16
13
0.13
722
clay altered granodiorite
MVD52
384962
9291475
30
14
16
1.01
77
sericite epidote altered porphyry
MVD62
384704
9291152
75
40
35
0.12
287
kspar epidote altered porphyry
MVD63
384596
9291160
48
0
48
0.75
373
diorite intruded by pyritic porphyry
Table 1 – Mt Victor Prospect Significant Drill Intercepts
Figure 2. Mt Victor Prospect Map with proposed drill sites (CNW Group/Fosterville South Exploration Ltd.)
Initial drilling at the Arau Project will involve five angled diamond drill holes to follow up on a successful electromagnetic survey and
previous excellent geochemical sampling results.
Wild Dog Project, New Britain, PNG
The Wild Dog Project consists of two Exploration Licence Applications (EL2516 & EL2761) totalling 1424 sq. km, which are located on the
island of New Britain and are approximately 50 kms southwest of Rabaul and Kokopo, PNG.
The Wild Dog project occurs within a major NNE trending structure of at least 26km in length which transect apparent volcanic caldera
structures and intrusions. During the Mio-Pliocene at least three volcanic centres, known as the Nengmutka, Keravat and Sikut calderas,
were localised along this horst and graben zone. This structural corridor is an epithermal and porphyry hydrothermal-magmatic mineralized
field.
The Nengmutka Caldera, which hosts the Wild Dog deposit, is characterised by a suite of calc-alkaline andesite breccia and ash flow tuff
known as the Nengmutka Volcanics (Lindley, 1988). This formation has been mapped over an area of 600 km
2
. Tonalite of the Arabam
Diorite intrudes the volcanic sequence and appears to be partly coeval with the caldera related volcanism.
The precious metal prospects are associated with epithermal type veining that contain gold-silver-telluride (Au-Ag-Te) mineralisation. Gold
and silver occur as native metals and as telluride minerals. Porphyry copper-gold type mineralization also occurs associated with these
intrusion centres that usually underly the epithermal systems. The whole of the recognised belt is held within the Wild Dog tenements.
Within the central part of the Wild Dog project, a significant structural corridor called the "Wild Dog – Gunsap Corridor" occurs. The
corridor is at least 15 km long and up to 4 km wide and hosts at least three porphyry copper-gold prospects and several epithermal gold
deposits and prospects.
The original Wild Dog epithermal gold deposit occurs within the "Wild Dog – Gunsap Corridor" in the central part of the tenements. It was
discovered in 1983, with exploration including extensive mapping, trenching, rock sampling & drilling between 1983 and 2005 by various
explorers. New Guinea Gold Limited (NGGL) operated a small open pit mining operation from 2007 and 2011. No exploration has occurred
since the closure of the mine.
Figure 3. Wild Dog Project Location and Tenements Maps (CNW Group/Fosterville South Exploration Ltd.)
Historical work completed by a previous operator returned significant gold assays. Channel sampling at the Kavursuki Prospect yields
4m
at 9.41 g/t Au and at the Kargalio Vein
6m
at 11.5 g/t Au.
Drilling of the Kavursuki Prospect by previous explorers, located within the Wild Dog Zone and north of the former Wild Dog mine, also
yielded positive high-grade results.
Hole ID
N
E
RL
Depth
Azim
Dip
From (m)
Length (m)
Au g/t
Cu ppm
90KVD005
9490500
395008
787
85.60
101.50
-45.00
5.35
1.25
12.80
1200
90KVD009
9490834
395227
758
93.85
101.50
-45.00
44.65
3.75
11.21
639
10KVD016
9490464
394971
798
51.00
101.50
-50.00
35.44
8.06
6.49
194
10KVD017
9490464
394970
798
50.00
101.50
-65.00
29.08
1.12
33.70
120
11KVD019
9490496
395039
807
45.10
101.50
-60.00
11.10
5.25
9.45
167
11KVD020
9490537
395045
805
50.90
101.50
-50.00
32.45
11.05
3.18
377
11KVD025
9490809
395241
752
45.20
101.50
-50.00
14.75
8.15
18.77
2801
11KVD026
9490810
395272
776
51.70
281.50
-60.00
33.80
5.10
14.70
101
11KVD027
9490870
395252
767
56.10
101.50
-50.00
30.70
1.90
10.35
46
Table 2 – Kavursuki Prospect Significant Drill Intercepts
Apart from the drilling conducted at the former Wild Dog gold mine there remain several drill intercepts that require further exploration
outside of the mine environment as tabulated below, apart from the various trenching and channel sampling targets.
Hole ID
N
E
RL
Depth
Azim
Dip
From
Length
Au g/t
Cu ppm
86WDD020
9489141
394278
983
259.35
103.50
-60.00
129.35
7.70
5.28
902
87WDD024
9489117
394316
965
152.55
98.50
-60.00
138.25
5.10
8.32
8556
87WDD027
9489115
394325
965
200.40
98.50
-60.00
117.95
6.20
19.13
786
87WDD040A
9489219
394320
994
280.99
103.50
-60.00
148.60
4.20
12.50
4066
87WDD045
9489235
394287
988
300.20
103.50
-60.00
201.30
2.85
16.94
32123
87WDD051
9489249
394257
985
309.10
103.50
-60.00
253.95
6.05
7.29
2054
87WDD058
9489285
394359
977
285.90
101.50
-60.00
147.00
12.45
4.96
6694
87WDD064
9489179
394289
1001
290.60
101.50
-60.00
158.00
14.95
2.73
650
87WDD065
9489160
394330
996
250.10
101.50
-60.00
142.70
4.65
5.49
3246
87WDD069
9489139
394375
991
123.50
101.50
-60.00
88.55
7.75
7.12
7151
08WDD111
9489393
394513
906
100.00
281.50
-60.00
48.40
7.10
5.47
931
85WDD014
9488708
394260
954
86.20
113.50
-51.00
48.25
5.25
9.79
10863
86WDP010
9488839
394302
909
60.00
83.50
-60.00
34.00
6.00
6.71
5047
87WDD040A
9489219
394320
994
280.99
103.50
-60.00
164.55
13.50
8.56
3056
90WDD086
9488948
394337
890
79.00
78.50
-50.00
18.45
11.25
16.22
3473
97WD098
9489389
394487
905
39.00
98.50
-45.00
12.00
8.00
9.73
NA*
Table 3 – Wild Dog Prospect Area Significant Drill Intercepts
NA* - not assayed or not available.
Hole ID
North
East
RL
Depth
Azim
Dip
From
Length
Au g/t
Cu ppm
MRC01
9487963
393871
968
20.00
0.00
-90.00
2.00
18.00
3.05
3084
MRC02
9487978
393874
971
30.00
0.00
-90.00
0.00
18.00
3.07
1053
90WDD087
9488091
394082
1021
61.95
101.50
-50.00
7.30
1.35
5.02
1650
90WDD088
9488104
394070
1023
40.30
101.50
-50.00
21.30
1.55
3.95
25
MMD003
9486870
393532
924
104.00
133.00
-50.00
2.35
4.42
NA*
MMD006
9486770
393479
945
122.05
133.00
-50.00
2.55
4.16
NA*
Table 4 – Mengmut Prospect Significant Drilling Intercepts
Additionally, multiple samples collected from a historic stockpile near the Wild Dog Zone returned bonanza grades of gold and copper
including Sample 30104 which assayed 242 g/t Au, 601 g/t Ag, 9.52% Cu and Sample 68001 which assayed 122.5 g/t Au, 350 g/t Ag and
11% Cu.
Figure 4. NE-trending Wild Dog - Gunsap structural corridor strongly coincident with equidistant intrusives and caldera features. (CNW
Group/Fosterville South Exploration Ltd.)
Figure 5. Historic exploration data at Wild Dog project. (CNW Group/Fosterville South Exploration Ltd.)
The exploration program at Wild Dog will initially focus on drilling the copper-gold Magiabe porphyry target as well as testing the potential
existence of an arrowhead intrusion complex at depth beneath the Wild Dog zone (
Figure 5
).
Figure 6. Schematic section for Wild Dog Zone, illustrating location of potential “Arrowhead Intrusive Complex”. (CNW Group/Fosterville
South Exploration Ltd.)
Kesar Creek Project, Kainantu, PNG
The Kesar Creek Project consists of one ELA2711 and is located 10 kms west of the Kora gold mine owned and operated by K92 Mining.
Exploration at Kesar Creek has identified the presence of semi-massive copper sulphides associated in quartz veins paralleling the Kora
gold deposit as well as the potential for a copper-gold porphyry deposit. Although limited exploration has been carried out at Kesar Creek,
initial rock sampling programs returned high-grade gold-copper-silver values including:
Rock sample no 14128 at 11.5 g/t Au
Rock sample no A1428 at 11.9 g/t Au
Rock sample no 9231F at 10.6 g/t Au
Rock sample no 14236 at 11.6 g/t Au, 29 g/t Ag, 360 ppm Cu
Rock sample no. A14023 at 30.4 g/t Au, 240 g/t Ag, 1300 ppm Cu
Figure 7. Historic exploration data at Kesar Creek project showing trench, soil and rock assay results with key geological features
previously mapped by Highlands Gold Ltd. and Barrick PNG Ltd. (CNW Group/Fosterville South Exploration Ltd.)
Terms of Transaction
Via the execution of a non-binding term sheet, Fosterville South and WDR have agreed to negotiate and settle the terms of a definitive
share purchase agreement whereby Fosterville South will acquire all the issued and outstanding securities of WDR. Management of both
WDR and FSX support this transaction. In consideration of WDR, Fosterville South will issue a total of 16.8 million common shares to the
shareholders of WDR, 526,835 share purchase warrants to the warrant holders of WDR and grant 1,553,520 options to the stock option
holders of WDR. The transaction is subject to TSX Venture Exchange acceptance, entry into a definitive agreement and such conditions
as are customary for similar transactions.
About FSX
FSX began with two, 100% owned, high-grade gold projects called the Lauriston and Golden Mountain Projects, and has since acquired a
large area of granted and application tenements containing further epizonal (low-temperature) high-grade gold mineralisation called the
Providence Project and a large group of recently consolidated license tenement applications called the Walhalla Belt Project, which contain
a variety of epizonal and intrusion related style gold mineralisation, all in the state of Victoria, Australia. The Fosterville South land
package, 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 Agnico Eagle's Fosterville epizonal gold tenements. Additionally, Fosterville South has gold-focused
projects called the Moormbool and Beechworth, which are also located in the state of Victoria, Australia. Moormbool project has epizonal
style gold mineralisation and Beechworth has mesozonal and intrusion relation gold mineralisation. The primary focus has been to explore
for epizonal gold deposits similar to the outstanding world class
Fosterville
gold mine.
All of FSX's properties, with the possible exception of Moormbool, have had historical gold production from hard rock sources despite
limited modern exploration and drilling. Victorian exploration is continuing to focus on specific key targets where results to date indicate
excellent exploration potential.
Qualified Person
The technical content of this news release has been reviewed, verified and approved by WDR Director,
Chris Muller
, PGeo, a Qualified
Person under the meaning of National Instrument 43-101 –
Standards of Disclosure for Mineral Projects.
Mr. Muller is responsible for the
technical content of this news release and has spent time onsite reviewing sampling results as well as discussing work programs and
results with geology personnel and external consultants.
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 exploration and development activities on the
Lauriston, Golden Mountain,
Providence
and Beechworth 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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For further information:
Adam Ross, Investor Relations, Direct : (604) 229-9445, Toll Free: 1(833) 923-3334, Email:
CO: Fosterville South Exploration Ltd.
CNW 08:00e 19-APR-23