An Australian copper explorer with base and precious metals projects in Canada and Peru is about to expand its international footprint by acquiring gold interests in two US states.
While Firetail Resources Ltd will continue to work on its Canadian flagship Skyline copper-zinc-silver volcanic massive sulphide ore body in Newfoundland, as well as conduct generative exploration at its Peruvian Picha (copper-silver) and Charaque (copper) projects, the company has indicated its intention to exercise its options to procure an 80 per cent interest in Excelsior Springs (gold-silver in Nevada) and all of Bella (gold in South Dakota).
When announcing its plan to enter the US at the start of June, the ASX-listed junior made sure the market was made aware of the geological credentials of both acquisitions.
Located about 260 kilometres north west of Las Vegas, Excelsior Springs sits within the (plus) 40 million gold ounce Walker Lane tectonic zone and boasts historical production of 19,200oz at 41 grams per tonne from shallow underground workings.
According to Firetail, the project area has a history of high grade yellow metal production, with the Buster mine producing over 19,000oz at 41g/t.
Modern exploration has defined a target area with a current strike length of 3.5km and a width of 200 to 400 metres containing intense silica and clay alteration.
Furthermore, significant robust intercepts which warrant follow-up exploration have been reported.
Moreover, geophysics, lithology mapping and sampling have supported the notion that there are further mineralised trends across the wider mineral claim.
In this regard past drilling has returned gold intercepts like 51.8m at 4g/t (from 39.6m), 33.5m at 5.35g/t (41.2m), 32m at 2.45g/t (44.2m), 24.4m at 3.62g/t (70.1m), 15.2m at 2.52g/t (at surface), 36.7m at 1.86g/t (71.6m), 6.1m at 4.07g/t (71m), 7.6m at 7.17g/t (42.7m) and a surface channel sample of 21.4m at 2.3g/t.
Recent rock chip sampling towards the eastern extent of Excelsior Springs on a parallel structural trend indicates there is a wider precious metal opportunity around the Blue Dick mine, with recent field mapping and sampling returning results of up to 6,630g/t silver from an area which is yet to be drill tested.
In a deal with the California-based Athena Gold Corporation, Firetail will pay its American counterpart $200,000, give it 32 million shares and spend US$5 million on exploration over five years.
Meanwhile, Bella, which sits around 56km west of Rapid City, is located within the Homestake Gold Belt, a trend that has yielded in excess of approximately 85 million gold oz.
Here, the mineral claims cover 110km of mapped banded iron formation with high grade potential as evidenced by multiple (roughly) 100g/t rock chip samples, which is similar to the main gold host at the Homestake operation (now owned by Dakota Gold Corporation).
Significant gold assays at the historical Standby mine include 12.2m at 46.62g/t, 3.1m at 10.29g/t (from 730.9m), 14m at 2.47g/t (158.5m) and 6.1m at 2.81g/t (172.5m).
Additionally, channel sample results from across the wider project area have returned numbers like 15m at 16g/t, 10.7m at 13.30g/t, 29.m at 11.30g/t and 10.7m at 15g/t.
In the case of Bella, Firetail has entered into a binding agreement with Canada’s Badlands Resources Incorporated for $700,000 cash, 17 million shares, but with no vendor work commitments.
The Western Australian junior’s managing director, Glenn Poole, said Excelsior Springs represented an advanced, drill-proven opportunity with gold from surface, and mineralisation which remained open in all directions. It also had the potential to deliver an expedited resource.
As for Bella, he noted, it “sits in the shadow of a giant”, with the Homestake mine being one of the most notable in modern history.
“The evidence we see on the ground of extensive mineralisation hosting banded iron formation and multiple, significant grades occurring across the wider project area is highly encouraging,” Poole said.
“The opportunity to follow up on multiple, extensive, historically producing trends that have not been drilled in the modern era in a district known for its size and scale is hugely exciting.”
During the June-March quarter, Firetail received further diamond drilling results from the maiden 5000m program at Skyline, which confirmed the continuity of the mineralisation both along strike and down-dip over an initial strike length of 700m and a vertical depth of (plus) 300m.
They included 17.6m at 2 per cent copper, 0.3 per cent zinc and 3.3g/t silver from 170.3m as well as 4.6m at 2.8 per cent copper, 0.1 per cent zinc and 2.8g/t silver from 140m.
Skyline boasts historic production of 100,000t mined at 3 to 12 per cent copper, 7 per cent zinc and 1 to 3oz/t silver. The project area covers 110 square km with a 25km strike of highly prospective lithology and contact zones currently being targeted by some serious drilling and high resolution geophysics.
In southern Peru, Firetail has exposure to over 300km² of greenfield high grade copper potential through Picha (244 km²) and Charaque (60 km²).
Picha is a part of the publicly-listed BHP’s Xplor 2025 accelerator program and will deliver the WA junior with a one-off, non-dilutive grant of up to US$500,000.
Under this arrangement, Firetail is set to receive in-kind services, mentorship and networking opportunities with BHP, industry experts and investors.
