There are plenty of reasons to be encouraged by the latest Wishbone Gold PLC results for its Red Setter project in Western Australia (AIM:WSBN; AQSE:WSBN).
Is there any mineralisation? You bet it is.
The best results of a set released assays on 13 December included 14 meters at 1.gram per tonne and 0.2% copper and 10 metres at 0.48g gold and 0.03% copper.
These results are part of a larger confirmation that Red Setter is home to a hydrothermal copper and gold system.
It’s not surprising, in some ways.
It is in an ideal location.
In a district that has already produced more than one gold project of world-class quality.
The famous Telfer project, which is now mostly mined out of Newcrest to the north-east, can be found to the east.
Directly east is the Greatland Gold’s Havieron Project, which was the discovery that rekindled the flame of gold exploration in this region.
Keep in mind that Newcrest is well-known for looking for feed for Telfer’s increasingly underused facility, Telfer. And that Red Setter is even closer to Telfer than Havieron. Wishbone might have a hard time finding a better geographic address.
Although it’s not easy these days to secure such prime ground in Paterson Range, Wishbone’s chairman Richard Poulden did it.
Poulden was first given the ballot to acquire the project. Red Setter was not known at first.
It quickly became evident that the project had significant potential.
The underground magnetic anomaly is the main focus of geologists. This anomaly measures three kilometers long and multiple kilometres deep. It is much larger than the anomaly measuring 500 x 500 metres that lies in the center of Havieron.
Keep in mind that Greatland Gold’s valuations have reached several hundred of millions of pounds due to the Havieron anomaly.
There is only one way to determine if the ground meets the Wishbone aspiration. That’s to drill.
Poulden raised PS2.4mln for this purpose in September. The results of the first campaign are just now being reported.
So far so good. There’s plenty of mineralization to learn about, and lots of indications that there’s more.
Wishbone already feels confident enough about what it has found to make a direct comparison with the mineralisation at Telfer.
Not surprisingly, plans for next season’s drilling campaigns are already in motion.
Poulden says, “We have stopped drilling at the moment, but we know where to go next Year.”
First, however, the model for Red Setter needs to have a little more data.
Wishbone has completed a magnetotellurics study, which it will combine to the magnetic data and new information gleaned through drilling to improve its understanding of the geology’s workings.
The September raise has left plenty of money, so the geologists have plenty of cash to work with. However, there are still other projects that need to be completed, such as Cottesloe which is to the south of Red Setter.
It is believed that mineralization may extend over a strike of as much as 12 kilometers. Drilling is also possible.
In Queensland, Wishbone retains its original Wishbone properties. These properties continue to prove their promise.
Red Setter will continue to be the center of attention. Red Setter is attractive because of its location close to Telfer and the enormous potential it has geologically.
There is also the possibility of rivalry between Andrew Forrest, the mining mogul behind Fortescue, and Newcrest that could lead to a land grab in the Pilbara.
Forrest has the financial resources to make Greatland autonomous from Newcrest. If he does that, it would alter the entire dynamic of land valuation in the region and put Wishbone at the centre of a bidding battle.