Commissioners Gold (ASX:CGU) is in discussions to purchase the remaining unearned interest in the Cowarra Gold Project in New South Wales from Capital Mining (ASX:CMY).
Cowarra comprises of at least 8 recognised lode systems and has an estimated open cut Resource of 500,000 tonnes at a grade of 2.3 grams per tonne gold within the shallow mineralised material lying above underground workings at the Cowarra Mine.
The project is located 30 kilometres northeast of Cooma and 80 kilometres south of Canberra.
It is currently held equally by Commissioners Gold and Capital Mining under a farm-in agreement whereby Commissioners can earn up to 85% by exploration expenditure.
Cowarra
Cowarra is located within a strongly mineralised corridor that includes the historic Cowarra Gold Mine, numerous other historic mining operations and possible strike extensions.
It was previously mined by BHP Billiton (ASX:BHP) and Horizon Pacific. It contains numerous individual gold-bearing lodes, up to 3 metres in width, and traced up to 2,200 metres along strike.
The shallow mineralised material lying above underground workings at the Cowarra Mine hosts an Inferred Resource of 500,000 tonnes at 2.3g/t gold, or 37,000 ounces of contained gold.
No additional work has been performed on the resource since the original estimation.
There is potential to upgrade inferred resources to include 2010 and 2011 drilling and other lode systems as well as possible re-treatment of old mine tailings from Cowarra and Polar Star.
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