(MENAFN - ProactiveInvestors - Australia) Stratum Metals (ASX: SXT) has lodged applications for a total of 14 prospecting licences and one exploration licence in the highly prospective East Menzies Goldfield of Western Australia.
The company made the decision to lodge the applications following initial due diligence work completed in relation to the potential East Menzies acquisition announced last week.
The applications cover an area of geology interpreted to include a greenstone package, granitoids and the Moriarty Shear Zone.
Some of this area has been the focus of past exploration, however with most of the area under Cenozoic aged cover it appears exploration has been limited.
The majority of past work appears to have focused on outcrop areas to the west.
The application area includes the strike projection of targets highlighted in past explorers work.
Goldfields Exploration identified prospects such as Gigante Grande from auger soil sampling and rotary air blast drilling.
Mineralisation has been shown to be associated with veining within the Gigante Granite, proximal to basalts that are interpreted based on magnetics to run in a generally north to south strip through the tenement application area.
'Company making' agreement
Last week Stratum signed a Binding Heads of Agreement with two separate consortia bringing together 54 tenements, including two mining licences, under the one group.
The significance of the deal is that Stratum can now combine all of the data and conduct an overall aerial survey " which has never been done before on this scale.
The combined area has the potential for near term production generating significant cash flow, which would transition the company to a self-funded explorer.
This includes a near surface 36,000 ounce resource which could be extracted and trucked to one of the nearby processing centres within trucking distance, following any potential ore agreements.
An initial review indicates significant potential to expand on known resources and follow up a large range of already identified geochemical gold anomalies.
Highlighting additional potential, a TEM geophysical survey was conducted on M29/189 in 2008 defining moderate to strong anomalies with characteristics indicating potential massive sulphide mineralisation.
The area contains the Granny Venn-Aunt Nellie open pit mines plus over 100 historic gold workings.