In July 2016, Latitude Consolidated announced the signing of a binding term sheet with private company MGK Resources Pty Ltd (“MGK”) for the acquisition of 100% of the issued capital of MGK which holds the Quinns and Mt Ida South Gold Projects, located approximately 110km west of Leonora in the Eastern Goldfields of Western Australia.
The projects cover a large area of the highly prospective and under explored Mt Ida greenstone belt, which is also host to Eastern Goldfields Ltd’s high grade Mt Ida underground resource of 259,000t at 15.4g/t for 128,000 Oz. The significant land package and multiple prospects with known mineralisation provide an exciting opportunity for immediate resource consolidation and expansion.
The Company believes that the acquisition of Mt Ida South and Quinns provides a solid foundation for further acquisitions in the gold sector.
The resource is spread over 11 current prospects over the Quinns and Mt Ida South project areas with the majority under explored, open down dip and along strike.
Forrest Belle Open pit
Drilling at the abandoned Forrest Belle Open pit, which was mined to a depth of 26m in 1997, indicates that there is excellent potential for the known mineralisation to be extended both along strike and at depth. Drilling 60m north of the pit demonstrates that the mineralisation is continuous along strike with the potential of development of a western lode position. Drilling beneath the pit has shown that strong mineralisation exists up to 30m vertically below the pit floor. Multiple lodes are noted with part of the western lode remaining in the pit wall and the eastern lode position not adequately drilled. Drilling to the south has intersected moderate to steep lode positions with significant mineralisation.
Drilling at the northern end of the Boudie Rat pit shows that strong mineralisation exists up to 25m below the pit floor. Immediately south of the centre of the pit drilling suggests that the mineralisation flattens to the west before steepening up to near vertical at the southern end of the pit. There is also evidence of a potential eastern load at the very southern end of the pit. Drilling further south of the Boudie Rat pit is limited and on broad spaced intersections and has intersected anomolous to weakly anomalous results. Historical mining was to a depth of 25m in 1997.
Excellent potential exists to extend the mineralisation at depth below the existing pit and to extend known strike length of mineralisation.
The Quinn Hills mine workings consist of at least 2 sub-parallel, NW oriented lines of quartz lodes approximately 200m apart.The eastern line of workings have a 220m strike length and consist of several shafts and shallow pits. Drilling in close proximity to the historic mine indicates that there is excellent potential to extend the mineralisation with further drilling both along strike and at depth. Generally this area has been drilled to a shallow depth with most of the drilling returning ore grade intercepts.
The Matisse prospect is located 4km north of the Quinn Hills mine and was discovered by Sipa using RAB drilling in 2004. The prospect is under cover with approximatley 400m of strike and appears to be open both along strike and at depth. Only limited RC drilling has been completed and the anomalous gold values are associated with a mafic greenstone package, marked by intensive quartz veining and biotite alteration.
Belvidere, Boudies Nest, Boudie West and Boudie Beach.
These prospects are located to the west and south west of the Boudie Rat prospect.
- Belvidere is located 100m west of Boudies Nest and has been drilled over a 250m strike length over 4 drill sections. Further potential exists both at depth and along strike, particularly to the north.
- Boudies Nest prospect is located 300m south and 100m west of the Boudie Rat pit. The prospect has been drilled on 4 sections over 100m of strike.
- Boudie West prospect is located 300m west of the Boudie Rat workings and open pit with drilling targeting a significant soil anomaly.
- Boudie Beach is located approximately 600m south of Boudies Nest. Drilling appears open at depth. It is possible that this mineralisation links up with the mineralisation from Boudies Nest but further drilling is required to confirm this. Anomalous results have been intersected in this area on broad (~100m) sections with little or no overlap between drill holes.
Mt Ida South Prospects
Mt Ida South is located approximately 16km south of the Quinns Project area and includes the resources at Tims Find and Spotted Dog. It is also approximately 5km south east of Eastern Goldfields Ltd’s historical Mt Ida mine which has a current underground resource of 259,000t @ 15.4 g/t for 128,000 Oz. Mineralisation is associated with an intense shear zone at the contact of an ultramafic and sheared mafic (basalt) unit.
- Tims Find/Spotted Dog covers approximatley 1.5km of strike and is only partially drilled to a depth of no more than 75m.
- Black Kite currently has a strike length of 1.2km and again has been only partially drilled to a maximum depth of 100m.