Woolgar Gold ProjectQueensland
The Woolgar gold field is located 120 kilometres north of Richmond in north Queensland.Read More...
Strategic Minerals Corporation NL (Strategic) is an Australian based gold exploration company whose principal major gold exploration project is located at Woolgar, in Central Northern Queensland, Australia.
The Company has been publicly listed on the Australian Stock Exchange (ASX: SMC) since 1981.
Strategic's core objective is to become a significant gold producer through mine development at its 100% owned and managed Woolgar Project. The project, which includes all mining titles and exploration permits, is located 120 kilometres north of Richmond, in Queensland, (see Figure 1), an area of high gold endowment, where several multi-million ounce gold deposits have been developed over a number of years. The project hosts multiple gold resources in several styles of mineralisation, including epithermal and mesothermal vein-hosted, and intrusive related gold systems.
High grade epithermal gold veins were first recognised by Strategic at Woolgar in 1986, in the Sandy Creek area as having the potential to host a major gold deposit.(refer details project section)
Mesothermal deposits associated within the Woolgar fault zone were first identified and mined in 1888. These deposits were first tested by Billiton in 1988 and SMC in 1989, but exploration ceased after discovery of high grade near surface Sandy Creek un developed epithermal veins.
Strategic resolved to recommence systematic exploration of the Woolgar fault zones deposits in 2007, after Oxiana completed some limited initial soil sampling along sections of the fault zone and received encouraging drilling results in the Union and Big Vein Southern areas.
Successive drill programs through 2008 to 2012 have been carried out by Strategic in other targeted areas within the Mesothermal zone along the Woolgar fault, and highly encouraging results have been received from each of those programs. Again high grade intersections have now been encountered in a number of gold pods identified within the Mesothermals occurring along the Woolgar fault (Big Vein South – Southern) (3), Central (1), Big Vein (4) and Big Vein No 2 (1). (Please refer latest drilling report in December 2012 ASX Quarterly Report)
Significantly these pods are located near surface and consequently development costs should be relatively in the lower range.
Strategic’s strategy is to establish sufficient gold resources near surface within these increasing number of pods to satisfy initial economic development at Woolgar to provide an on- going cash flow to further explore and develop additional resources within the Mesothermal zone. Following initial mine development the objective is to substantially extend the mine life of the Woolgar project itself. Once the Company is in a positive cash flow position, consideration will be given to pursuing the economic development of the much larger lower grade gold resources identified within the Epithermal zones within the project.
Strategic, through its subsidiary company Alpha Uranium N L, has established a uranium exploration portfolio, which includes substantive targets within the Woolgar project area, where the potential for the discovery of significant uranium deposits is considered high. Exploration activity for uranium is currently in hiatus due to the state prohibition on the mining of uranium, but may be resumed if legislative changes justify.