The Cutana Project covers an area of 282 km2 in the Olary region, about 350 km north-east of Adelaide. and within approximately five kilometres of the White Dam gold mine, operated by Polymetals Mining Limited (ASX: PLY) in joint venture with Exco Resources Limited (ASX: EXS). See Figure 1. Cutana Project
Exploration at the Cutana Project is targeting gold and associated mineralisation similar in style to the nearby White Dam gold deposit. In 2011, Renascor identified several high priority targets from a program of extensive multi-element geochemical sampling over areas of major interpreted structures in the two western blocks of EL 5585 (previously EL 4394). See Figure 2 – Cutana Project:Initial drilling targets.
In December 2011, Renascor completed initial reconnaissance drilling over a portion of these gold targets, completing 33 reverse circulation holes for a total of over 2,100 metres at 50 to 100 metre intervals. Results from this initial include elevated gold and copper levels at the partially drilled Heinrichs Prospect.
In December 2011, whilst drilling over the two western blocks of EL 5585 (previously EL 4394), Renascor completed additional multi-element geochemical sampling in the eastern block of EL 4394 and identified the Pinery Prospect, the project’s most extensive geochemical target to date. The sampling defined two elevated gold zones at the Pinery Prospect, near the eastern tenement boundary. Subsequent infill sampling of Pinery defined an elevated gold zone (greater than 5 ppb) over an area of approximately 2,000 metres by 500 metres, with maximum gold levels of 48 and 53 ppb in, respectively, the southern and northern portions of the anomaly. Renascor considers the soil gold anomaly at Pinery to compare quite favourably to soil gold levels from White Dam. See Figure 3 – Renascor’s Pinery Prospect, showing soil gold contours at 10 ppb Au, compared at scale to Exco and Polymetal’s White Dam gold deposit (Brown and Hill, 2007).
As a result of the favourable geochemical results from Pinery, Renascor has now expanded the reconnaissance drill programme at the Cutana Project to include initial drill testing of Pinery, in addition to completion of planned programmes at Heinrichs and other targets identified in the western blocks of EL 5585 (previously EL 4394).