Coolyia Project, Pilbara, Western Australia
- 80% interest in two Exploration Licence Applications at Coolyia Creek, 40km South West of Marble Bar
- Prospective Hardey Formation conglomerate horizon and Mt. Roe Basalt identified by GSWA mapping
Castle Minerals has the rights to acquire an 80% interest in two adjacent exploration licence applications encompassing the prospective basal conglomerate horizon of the Hardey Formation and its unconformable contact with the underlying Mt. Roe Basalt as mapped by the Geological Survey of Western Australia (GSWA) (Figure 1).
The applications comprise a total of four blocks (12.8km²) at Coolyia Creek, 40km southwest of and easily accessed from Marble Bar in the East Pilbara region of Western Australia (ELAs 45/4965 and 4975) (Coolyia Creek Project).
The prospector applicants for ELA45/4965 have advised Castle that metal detecting by them on the area being applied for has located a number of gold nuggets (exact location, number, size, gold content and appearance unknown and not independently confirmed as yet). Generally, this area and its surrounds are known to amateur fossickers for gold but until recently no geological context has been applied to gold occurrences in the area.
The GSWA has described the Hardey Formation conglomerate horizon in the area as “Cobble to boulder conglomerate, rounded clasts of Mt Roe Basalt in a range of matrix of quartzofelspathic sand and mafic volcanic detritus”. The Hardey Formation and Mt Roe Basalts sit at the base of the Fortescue Group stratigraphy that is widespread throughout the Pilbara region.
The acquisition has been made purely on the basis of the georeferencing of the applications over the GSWA mapping and satellite imagery. No systematic exploration for gold has been undertaken on the licences. Castle’s geologist will shortly visit the site to verify the GSWA mapping, whether or not the mapped conglomerate is gold bearing and (or otherwise) to validate the prospector comments on the presence of anomalous gold and gold nuggets.
There is considerable geological conjecture as to the origin of paleo-placer gold in the Pilbara region. It is known to occur in the Hardey conglomerate and/or a stratigraphically lower conglomerate horizon occurring at the base of the Mt Roe basalt itself. These occurrences are distinct from gold associated with other styles of mineralisation such as epithermal quartz vein hosted gold.
Castle will pay two prospector applicants for the single block E45/4965 $20,000 cash for the right to have transferred to it an 80% interest in the licence upon its grant and will also reimburse their application fees. The vendors will be free carried to a decision to mine and will also receive 1% net smelter royalty on all mineral production. The licence was applied for on 20th July 2017 and its grant is expected within several weeks, subject to successful native title negotiations.
The four block ELA 45/4975 (one block overlaps E 45/4965 and is later in time) has been acquired from another party on similar terms other than the consideration is the issue of 2,000,000 ordinary Castle shares. These will remain in voluntary escrow until the licence is granted.