Cosmo Metals has locked in a diamond drill rig to advance its high-impact program at the Kanowna Gold Project, targeting deep gold mineralisation near the Fitzroy Fault with government co-funding.
- Diamond rig contracted for 400m deep hole at Laguna Verde
- Drilling targets orogenic gold near Fitzroy Fault extension
- Potential diamond tails on recent RC holes testing Kanowna Shear
- Drill-for-equity deal preserves cash reserves
- Project adjacent to Northern Star’s 7Moz Kanowna Belle mine
Diamond Rig Secured for Critical Deep Hole at Kanowna
Cosmo Metals Ltd (ASX:CMO) has secured a diamond drill rig to push forward the second phase of its drilling campaign at the Kanowna Gold Project (KGP), located just 13km north of Kalgoorlie. This phase centres on a 400m deep diamond hole at the Laguna Verde prospect, a key target co-funded by the Western Australian Government’s Exploration Incentive Scheme (EIS). The drilling aims to test for orogenic sediment-hosted gold mineralisation near the interpreted extension of the Fitzroy Fault, a major structural feature linked to the nearby Kanowna Belle gold mine operated by Northern Star Resources (ASX:NST).
The diamond rig mobilisation is expected within weeks, marking a critical step beyond the initial reverse circulation (RC) drilling phase that targeted Invincible-style gold mineralisation along the Kanowna Shear Zone. This shear zone bisects the Panglo Basin sediments and is associated with widespread pathfinder element anomalism and supergene gold, making it a fertile ground for high-grade discoveries. The program also contemplates completing diamond tails on recent RC holes that encountered encouraging structural and geochemical signatures.
Strategic Focus on High-Grade Gold Analogues
The Laguna Verde hole is designed to probe a structural setting analogous to the Kanowna Belle deposit, leveraging the government’s EIS co-funding to enhance drill depth and precision. Previous shallow drilling at Laguna Verde returned notable gold intercepts, such as 3m at 5.1g/t Au and 24m at 0.23g/t Au, highlighting the prospect’s potential. Elsewhere on the project, prospects like Don Alvaro and Adder remain open at depth, with historical results including 18m at 5.3g/t Au and 32m at 0.44g/t Au, respectively.
These targets are prospective for deposits similar to the Invincible Gold deposit near St Ives, which was a significant discovery by Gold Fields in 2012 with a resource exceeding 1.3 million ounces at 4.5g/t Au. The Invincible discovery underscores the potential for high-grade, structurally controlled gold deposits within this geological setting. Cosmo’s Managing Director Ian Prentice highlighted the value of securing a local Kalgoorlie-based diamond drilling contractor to execute this phase, signalling confidence in the project’s upside and operational readiness.
Innovative Drill-for-Equity Arrangement to Preserve Capital
In a move to safeguard cash reserves amid an active exploration schedule, Cosmo has agreed with Terra Drilling, a respected Kalgoorlie-Boulder contractor, to settle up to $40,000 of the diamond drilling invoice in Cosmo shares. This drill-for-equity arrangement allows Cosmo to conserve cash while maintaining momentum on its drilling program, reflecting a pragmatic approach to funding exploration in a capital-intensive environment.
This development follows the company’s recent commencement of RC drilling at Kanowna, which targeted structural and sediment-hosted gold along the Kanowna Shear Zone, including the Adder and Don Alvaro prospects, supported by the WA Government’s co-funding scheme. The phased drilling approach and government partnership underscore Cosmo’s strategic positioning to unlock value in a prolific gold district adjacent to one of Australia’s largest gold mines high-impact drilling at Kanowna.
Meanwhile, Cosmo’s broader exploration activities include advancing gold-antimony and copper projects in New South Wales, funded partly by a recent $1.55 million entitlement offer. This capital injection underpins ongoing drilling and geochemical programs across its portfolio, balancing regional diversification with focused efforts at Kanowna entitlement offer to fund drilling.
Bottom Line?
The secured diamond rig and drill-for-equity deal position Cosmo to efficiently test high-priority deep gold targets at Kanowna, with results from the Laguna Verde hole likely to shape the project’s next phase.
Questions in the middle?
- Will the deep diamond drilling at Laguna Verde confirm structural extensions of the Fitzroy Fault hosting significant gold mineralisation?
- How might the drill-for-equity arrangement impact Cosmo’s share structure and investor sentiment?
- What are the timelines and expectations for assay results from this diamond drilling phase?