Victorian Gold Projects
During November 2019 Cauldron Energy Limited executed Heads of Agreement (HOA’s) over the Bullarto South and Blackwood gold projects, lying adjacent to one another south-east of Daylesford, in the highly prospective Central Victorian Goldfields that surround Ballarat.
Together the Bullarto South and Blackwood gold projects cover an area of ~160 km2 and secure the most significant portion of the historic Blackwood Goldfield.
From 1864 to 1960 the Blackwood Goldfield produced approximately 218,000 ounces of gold. Gold was won down to a depth of 100 m below surface, with very little mining activity below a depth of 150 m. The Sultan mine is the deepest in the goldfield with production levels at 230 m below ground surface and its shaft reaching 274 m, and still in pay.
The vendor of Blackwood Gold Project has spent 25 years consolidating the leases of the project area, now providing a great opportunity for systematic exploration and development over the entire goldfield.
Multiple high-priority targets have been identified across both projects with plans prepared for immediate testing.
On 12 December 2019, Cauldron announced that it had completed its legal and technical due diligence in relation to both projects.
Cauldron and the project vendors are in the process of drafting and finalizing joint venture agreements for each project and satisfying other conditions for acquisition including, but not limited to, gaining regulatory approval for transfer of ownership to the joint venture.
From 1864 to 1960 the Blackwood Goldfield produced about 218,000 ounces of gold from orogenic gold sources (199,000 ounces) and from placer sources (19,000 ounces)1.
The two projects complement each other and together provide:
A sizeable foothold in a largely forgotten but historically significant goldfield that has received only sporadic exploration since the 1920’s;
Potential to fast-track mining production with near-term generation of cash flow;
Potential for significant expansion of known mineral resource;
Exceptional logistics being only 30 minutes easy drive from the outer suburbs of western Melbourne;
Well-rounded exploration portfolio with an exploration pipeline of prospects.
Cauldron has a high level of confidence in the Blackwood Gold Project, and the Bullarto Gold for the following reasons:
The advanced nature of the exploration and mining dataset showing the real possibility for near-term production and expansion of Mineral Resource;
Existence of shallow remnant, high-grade gold mineralisation around historic underground workings abandoned due to flooding, in several areas of the licences;
Existence of gold mineralisation deeper and down-plunge from known workings around the Sultan mine;
The vast historic dataset underpinned by historical exploration work conducted by skilled personnel; and
The experience of the geological team assembled by Cauldron and Vendor having deep understanding of the Victorian Goldfields.