Victoria Gold Fields
Property StatusEffective June 27, 2008, and amended February 2, 2011, the Company signed a letter of agreement for a farm-in and joint venture with Northgate Australian Ventures (now AuRico Gold -- "AuRico") for three mining tenements in the Stawell Corridor of the Victoria Goldfields. The Company can earn a 50% interest in one or all of the three properties by funding an additional A$500,000 per property by June 30, 2012 with a minimum expenditure of A$450,000 in aggregate per year. The property was sold by AuRico to Crocodile Gold Corp. ("Crocodile") subsequent to the period end. The Company is currently working with Crocodile to update the option agreement.
Upon the Company earning a 50% interest in one or more properties, Crocodile will have the option to earn an additional 10% interest for a total of 60% interest in the property by funding an additional A$1.5 million in exploration expenditures within 3 years, to form a 50:50 joint venture with the Company or elect not to contribute and allow the Company to earn a 100% interest in the property by funding an additional A$2 million in exploration expenditures over 4 years. In the 2012 calendar year the Company earned a 50% interest in one of the mining tenements and is now in the process of earning a 100% interest in that tenement. The Company withdrew from earning an interest on two other tenements.
The Company is now seeking a partner to advance exploration at the Murtoa property and systematically test the targets generated in previous programs.
Victoria Gold Fields Presentation
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The land position encompasses much of the Stawell Corridor. Victoria Goldfields have been a prolific gold producer for the State of Victoria, Australia, accounting for approximately 75% of the total gold production in the state.
The exploration model for the corridor has been extensively studied, providing exploration criteria at both the regional and detailed scales. Kiska will have access to Northgate's Stawell Gold Mine (SGM), which anchors Northgate's position in the 240 kilometre-long belt. This access will help build a better understanding of the geological model and improve Kiska's exploration effectiveness. The deal is structured similarly to other Kiska/Northgate arrangements in which Kiska undertakes to advance exploration to the point where drill targets are defined, at which time Northgate can take over funding of exploration, earning a larger percentage in the property for doing so.
High quality targets with convincing similarities to SGM exist in the land package being made available to Kiska. Previous work programs were well designed, identifying numerous targets that have yet to be brought to the drill-ready stage, however, insufficient resources were available to the predecessor company to conduct systematic greenfields exploration of the entire land package.
Exploration ProgramsIn 2012, Kiska drilled 2,181.5 m of aircore in twelve holes to the bedrock surface to test for anomalous gold and pathfinder geochemistry below the cover sequence. The aim of the 2012 aircore drill program on the Murtoa property was to test two of the nine best targets defined by work done by Kiska from 2009 to present. The targets are in covered terrain and are defined using multiple independent geological, geochemical and geophysical vector methods.
During 2011, the Company completed ground-based geophysics (induced polarization, audio magnetotelluric, and gravity surveys) and geochemical sampling programs on these properties.
HighlightsPast work on the Stawell Corridor ELs has identified some large-scale targets, however funding for Northgate's predecessors exploration in the district was limited and a systematic evaluation was not completed on the entire land package. A strong model to guide exploration in the district does exist. Some key characteristics that make for favourable targeting criteria include the use of geophysics (gravity and magnetics surveys) to define basalt centres and granites that are associated with mineralization in the corridor. Another key is the presence of gold at surface in geochemical surveys or alluvial (placer) deposits or gold found in the subsurface via RAB drilling.
Some excellent targets that resemble the Stawell Gold Mine do exist:
Murtoa: Buried target identified by geophysical techniques. Covered by 100 metres of overburden, largely untested except for an area of 25 drill holes.
Westmere Dome Target: Anomalous gold in drilling, with only 17 holes over the entire 12 km of the target.
Dundonnell: Basalt indicated by drilling, anomalous gold in drill holes. Very little drilling over length of target.
GeologyThe Stawell corridor is a highly deformed and metamorphosed volcanic-sedimentary stratigraphy cored by the Stawell Gold Mine. The corridor is situated in a Paleozoic fold and thrust belt, bounded on the west by the major terrane-bounding Moyston Fault and on the east by the Coongee Break. Rocks to the east of the break are composed of simply folded turbidites (hosting the Bendigo-Ballarat gold belt) while those in the Stawell corridor include intensely deformed steeply dipping schists. The deposit area stratigraphy ideally consists of accumulations of basaltic rock, or so called basaltic domes, draped in ferruginous (iron-rich) volcanogenic sediments overlain by pelitic schists (shales). This stratigraphic arrangement is considered to represent a failed VMS type setting developed at these isolated basalt centres. Subsequent deformation has structurally prepared the belt and lead to the formation of crustal scale structures. Orogenic mineralization at the Stawell mine is dated at 440 Ma and consists of gold bearing quartz vein systems that occur largely within the volcanogenic sediments that wrap around the western flank of the large, doubly plunging Magdala basalt antiform. Gold accumulation is thought to be developed where these dilational zones and fluids interact with the ferruginous sediments.
The content of this page has been reviewed by Michael Roberts, Ph.D., P. Geo., VP Exploration of Kiska Metals. Mr. Roberts is a Qualified Person as defined under the terms of National Instrument 43-101.