(MENAFN - ProactiveInvestors - Australia) Speewah Metals (ASX: SPM) has identified 10 additional conductor targets in a review of reprocessed versatile time-domain electromagnetic data collected in 2011 over its Speewah Dome Project.
All of these VTEM targets are coincident with faults and with several of the litho-structural targets that had previously been outlined in the September 2012 technical review.
Importantly, this provides higher confidence that these anomalies should be tested for copper-gold mineralisation as a priority.
The positive results from the VTEM modelling support the new copper-gold exploration strategy, which targets unexplored fault locations where the favourable felsic granophyre unit is likely to be present, and potentially close to surface.
Tony Barton, chairman, told Proactive Investors today: "To see so many targets which are so coincident over faults I think is really encouraging."
Speewah's copper-gold exploration plans have recently been totally focused on following up all of the recommendations contained within the September 2012 review, including:
- Reprocessing of the 2011 VTEM survey, which is now completed, for accurate location of target structures;
- Further interpretation of the 2011 Gravity and Magnetics surveys for depths to possible IOCG targets;
- Pegging of new ground, also now completed;
- Collecting 2,500 soil and rock samples over all new locations over previously untested targeted structures;
- Infill soil sampling of priority targets;
- Rotary air blast drilling on the highest order targets; and
- Potential reverse circulation and DC drilling on encouraging results.
Speewah will undertake a field trip beginning the week of 19 November to visit each of the target locations identified in the Sept 2012 review and the more recent VTEM interpretation.
Share Purchase Plan
To fund ongoing exploration and development of Speewah's projects, the company has launched a share purchase plan for shareholders to purchase up to 15,000 worth of fully paid ordinary shares in the company.
Speewah will issue up to 39.2 million shares at 0.05 each.
Barton said on completion of the capital raising and once Speewah received the R&D money back early in the March quarter of 2013, the company would be more than adequately funded to begin exploration.
"We're going to have more than enough money to fund a very extensive and detailed soil sampling program over those 23 different targets."
Worth noting is that numerous high grade copper, gold and silver assays have previously been delivered from surface rock samples taken from in the North Eastern section, with the best results reported being 27.25% copper, 25 ounces per tonne silver, and 4.97 grams per tonne gold.
The identification of 10 possible conductor targets points to strong exploration potential at Speewah Dome, with all of these VTEM targets coincident with faults and several of the litho-structural targets previously identified.
This provides higher confidence that these anomalies should be tested for copper-gold mineralisation as a priority.
A new geological model, with new priorities for copper-gold exploration that has emerged offers potentially exciting upside for Speewah and for investors given current valuation is around 6.5 million and share price around 0.05.
Effectively, this re-focus on copper-gold and new geological model provides a path to new upside for investors.
We consider this path taken by Speewah Metal's as a strong opportunity for investors to re-set in the company and for new investors to consider the upside equation from current valuation in light of previous success from 2010 / 2011 exploration results.
It would not require much by way of success in the next few months to set this Speewah share price alight.