Fosterville South Exploration (FSX:TSXV), the strongly financed explorer with a huge land position in Victoria, Australia, has started off their Reedy Creek drilling program by encountering a lengthy intercept of high grade gold.
The intercept, grading 11m at 31.34 g/t Gold Including 4m at 80.05 g/t Gold, was drilled into a geochemical anomaly within one of two ridge targets that are the focus of initial drilling at the goldfield, which is within the company’s Providence Project.
Fosterville South, when going public, attracted much attention and capital from some of the most successful mining investors in the industry largely due to the commanding land position of approximately 4,000 sq km of exploration tenements and tenement applications over a multi-year period. Included within this premier land package is 600 sq km that is directly south of and contiguous with Kirkland Lake Gold’s (KL:TSX) Fosterville Mine tenements.
CEO of Fosterville South, Bryan Slusarchuk, notes “Over the past year, the team in Victoria has been very busy doing fieldwork such as the geochemical sampling leading up to today’s drilling success at Reedy Creek, getting drill contracts and access agreements in place and building out logistics. Going forward, the next several months will be very drill-centric and we expect a lot of news flow from this rapidly accelerating drill program.”
While gold equities have been soft as of late, with industry stalwarts such as Barrick Gold (ABX:TSX) and Newmont (NGT:TSX) trading near 52 week lows, exploration success such as Fosterville South’s news today coming at a weak point in the market is potentially providing an excellent opportunities for entrants to the space and for seasoned gold investors looking to add to positions.
Kirkland Lake Gold’s huge success at their Fosterville Mine in Victoria has put the region on the map globally among high grade gold investors and as early movers, Fosterville South was able to piece together a commanding land package in the region long before today’s modern day gold rush in the area taking place.
Slusarchuk further states, “What Rex Motton, co-founder and COO, has done in putting together this land package over multiple years is quite extraordinary. There are multiple projects that we are very excited about. Now, after a lot of work on the ground quietly vectoring in on targets and putting in place everything required to run a large drill program, the drilling will do the talking and we couldn’t be more excited about these first results at Reedy Creek. Multiple projects with multiple drills will be tackled, but obviously given the high grade hits announced today, a lot of attention will be on the Reedy Creek Goldfield within the Providence Project in the coming months.”
A lengthy high grade gold hit is a rare but exciting way to start an exploration program and with approximately $25 million cash on hand and an experienced team of geologists at the helm in Victoria, the program promises to expand and get larger from here.
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