Hexagon Energy Materials defines new gold anomalies at Halls Creek Project in WA

Hexagon Energy Materials Ltd (ASX:HXG) has defined new gold in soil anomalies at two of the three prospects soil sampled in July 2020 at the Halls Creek Project in WA’s Kimberley region, with assays for the third prospect, Calibri, pending. Gold in soil anomalies were defined over lengths of 1.4 kilometres and 3 kilometres at the Golden Crown South and Bent Ridge prospects, respectively. The Halls Creek region is known for high-grade gold deposits such as those currently being mined by Pantoro Ltd (ASX:PNR) at the Nicholson’s Find Gold Mine. Additionally, the historical Butchers Creek Gold Mine located less than one kilometre to the west of Hexagon’s tenements and new Golden Crown South prospects, is currently being drilled by Meteoric Resources NL (ASX:MEI). “Exciting results” Managing director Mike Rosenstreich said: “Hexagon’s systematic, geologically based approach is generating exciting results, clearly defining two new gold prospects from recent soil geochemistry and well supported by key structural elements identified by the detailed mapping completed in August. “These initial results for the first two out of the six higher priority prospects are highly encouraging as we advance towards gold discovery, and we are excited to forge ahead with further new target areas over the coming month.” Gold target at Bent Ridge site Historical work has identified a 3.5-kilometre strike extent of soil anomalism of common ‘pathfinder elements’ for gold mineralisation such as coincident arsenic and base metal anomalies. Hexagon’s survey is the first to include assays for gold with the new results defining two target zones of 0.8 kilometres and 2.4 kilometres in strike-length within an overall 3.5-kilometre trend of gold anomalies and updated arsenic and base metal results confirming the historical results. The prospectivity for gold mineralisation is further enhanced by a historical geophysical survey over a modest 25% of the newly defined soil anomalies which comprised a strong conductive and chargeable induced polarisation (IP) response associated with a mapped siliceous gossanous ridge. Mapped rocks and the geophysical response are interpreted to be related to the presence of sulphide minerals, commonly associated with gold mineralisation. Next steps Several of these anomalies are ‘open-ended’ and additional sampling is required to determine the extents as well as to infill the existing wide-spaced sample intervals. Western Australia is currently experiencing an exploration boom with Program of Work (PoW) applications up 63% to a 5-year high, and whilst this is positive for the industry it has created significant backlogs with assays and severely constrained the availability of drill rigs, assay services and labour. Hexagon has received approval for four PoW applications including for Bent Ridge and Golden Crown South drill programs. Timing of drilling is currently dependent on the availability of drill rigs and unfortunately, a previously ‘secured’ rig is now at risk of being potentially further delayed, precluding Hexagon from drilling due to the impending wet season. Further sampling work This creates the opportunity to continue advancing the project with Hexagon planning to complete further surface sampling work to scope out the extent and better define new anomalies ahead of an initial drill program. This delay could also mean that drilling expenditure for the Bent Ridge prospect could be supported by funding from the State Government’s Exploration Incentive Scheme, which Hexagon has applied for. Under these circumstances, the company would receive the delayed soil results from the Calibri prospect, complete the follow-up sampling and then undertake a larger, better-defined drill program at the end of the wet season in April 2021. This is still to be finalised - all being subject to rig availability and target definition work.