Kairos announces promising developments at Mt York lithium gold project
In the last three weeks Kairos Minerals (ASX:KAI) has delivered some important news regarding its Roe Hills gold project and the Mt York lithium gold project, both located in Western Australia.
Encouraging exploration news regarding the Roe Hills project released at the end of August resulted in a share price spike of circa 10%, but with sentiment towards the gold price waning in recent weeks the company’s shares have retraced from 4.5 cents to yesterday’s closing price of 4 cents.
However, there is the potential for a significant and more sustained share price kick today with KAI releasing the results of geochemical analysis of soil samples recently taken at its Mt York lithium-gold project in relation to a strong lithium-caesium-tantalum anomaly outlined as southern extensions to the prolific Pilbara/Altura Pilgangoora lithium corridor.
The recently completed geochemical review of this region highlighted numerous significant gold and lithium-tantalum targets. The results have identified major extensions to the Old Faithful, Iron Stirrup, Main Hill, Breccia Hill and Zakanaka South gold deposits.
What comes of these deposits is yet to be determined so if considering KAI for your portfolio, seek professional financial advice.
The outcome of these exploration results is highlighted in the following mapping, but it is also significant that several extensive, previously unrecognised and unexplored gold bearing anomalous trends have been defined as high priority drill targets.
Iron Stirrup is already shaping up as a potentially promising prospect with KAI having recently reported an indicated and inferred mineral resource estimate for the deposit of 714,000 tonnes grading 1.99 grams per tonne gold for 45,000 ounces of contained gold.
Is also important to note that the Old Faithful deposit was part of the initial JORC resource established at that time and it has an indicated and inferred mineral resource of 2069 Kt grading 1.37 grams per tonne gold for 90,000 ounces of contained gold.
Given the relatively shallow resources total 135,000 ounces, management intends to further explore these tenements with drilling at Mt York to commence this month.
A number of near to medium-term share price catalysts are evident with KAI continuing to evaluate the Main Hill and Breccia Hill deposits to define a maiden JORC 2012 compliant gold resource.
As highlighted by management, it is important to note that KAI retains a significant lithium exploration portfolio covering more than 1100 square kilometres in the East Pilbara, including the highly prospective Wodgina East project where maiden exploration programs are continuing. As can be seen below, the company’s tenements are ideally positioned in close proximity to those held by Pilbara Minerals and Altura Mining.
In summing up today’s developments, Managing Director, Joshua Wellisch said, “The continued focus by Kairos’ technical team on advancing Mt York with a methodical, multi-disciplinary approach, has again delivered exceptional gold and lithium targets in the lead up to our maiden drilling program in the Pilbara”.
He also said that the group plans to continue drilling at Mt York through 2017, expanding its known gold JORC resource, as well as drilling the new high priority gold and lithium targets.