Home' Australian Resources and Investment : March 2010 Contents tennant creek
The Company believes that the newly discovered Rover Goldfield
has all the right ingredients to replicate the history of the
nearby rich Tennant Creek Goldfield, located just 80km down the
dusty track across the spinifex plains of the Tanami Desert.
Tennant Creek ranks in the top ve of Australia's premier gold elds
historically and is renowned for mines with exceptional high grade gold
and copper mineralisation. The most notable of these was Juno, which
produced over 800,000 ounces of gold at an average grade of 56g/t --
or just under two ounces of gold to the tonne.
Altogether, this mining centre has produced over 5 million ounces
of gold and around half a million tonnes of copper metal from a handful
of mines between the 1930's and late 1990's and was also a major
bismuth producing district of the world.
The Rover Gold eld was initially discovered in the early 1970's
based on the recognition of similar magnetic targets to those around
the mines in Tennant Creek. Limited exploration occurred up to 1982
when access to the area was curtailed.
In 2006, Westgold began the rst exploration drilling program on
the tenements in 25 years, quickly establishing a Lead-Zinc resource at
Explorer 108 and, more recently, high grade gold and copper
mineralisation at Rover 1.
At Rover 1, Westgold's discovery of "Tennant Creek style" bonanza
gold grades such as 65m @ 11g/t, 21m @ 33.5g/t, 6m @ 41.1g/t and
7m @ 185 g/t Au and the strongly associated copper mineralisation
including 29m @ 3.6%, 14m @ 5.3% and 65m @ 2.6% Cu has caused
plenty of excitement since diamond drilling commenced in early 2008.
Drilling completed over the last 20 months suggests that Rover 1 is
shaping up as a signi cant discovery, possibly resembling deposits such
as the "Warrego Mine" -- the largest copper gold deposit in the Tennant
Creek Gold eld.
With this impeccable geological pedigree, Rover 1 has all the
ingredients of a potential company-maker, and it is likely the imminent
"maiden" resource statement due in the next few weeks will rmly place
Westgold and the Rover Gold eld on the Australian "resources map".
Importantly, Rover 1 has plenty of room to grow with future
drilling, as the three high grade gold and copper shoots remain open in
most directions. Overall, the near term upside is considered excellent as
it is estimated that only around 30% of the geophysical target at Rover
1 has been drill tested.
Planned drilling programs in 2010 will go a long way towards
testing this potential with aggressive drilling planned to commence in
March after the cessation of the northern Australian wet season. This
planned drilling will aim to increase the overall resource inventory and
improve resource categories prior to commencing economic studies.
Westgold is the largest landholder in the Rover Gold eld with over
13,000km2 of tenure and in order to build on its recent success at Rover
1, the Company is keen to commence testing the many prospective
Initially, regional drilling will target the Explorer 142 prospect
where earlier drilling has encountered very similar rocks and styles of
alteration to those de ned at Rover. Limited drilling to date along only
a small portion of the 1km long magnetic target has already produced
strong copper mineralisation, including a best result of 20m @ 3% Cu.
Drilling will also focus on a number of other high priority "virgin"
Corporately, the company is well funded with over $18 million in
cash and a strategic 19.5% investment in Aragon Resources Limited, a
gold company with resources of over 1.5 million gold ounces within the
Central Murchison Gold eld of Western Australia.
The Company's vision is to become a gold producer, initially at
Rover 1, and then to grow production from further satellite discoveries
within the Rover Gold eld.
Rover 1 set to propel Westgold
to the next level
2010 looks set to be a transformational year for gold explorer Westgold
Resources Limited (ASX: WGR), which is poised to unveil a maiden gold and
copper resource for its flagship Rover 1 Project in the Northern Territory during
the first quarter.
112 • MARCH 2010 • AUSTRALIAN RESOURCES & INVESTMENT
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