Drill results from Fosterville South Exploration's (TSXV: FSX; US-OTC: FSXLF) initial 10-hole drill program at the Thompson Reef and the Prince of Wales Reef within the Reedy Creek target of its Providence project in Victoria state, Australia, have returned "strong gold grades," at shallow depths.
Highlights from the drill results included 2 metres grading 174.42 grams gold per tonne starting from 23 metres (true width of 1.5 metres) in hole TRC02 at the Thompson Reef; and 12 metres grading 1.66 grams gold per tonne starting from 47 metres true width of 9.3 metres) in hole PWR01 at the Prince of Wales Reef.
"Fosterville South continues to operate multiple drill rigs on different projects within the large 4,000 sq. km land package we have assembled over a multi-year period," Rex Motton, the company's COO said in a press release. "The Reedy Creek goldfield... is now yielding high grade intercepts at a number of prospects with more targets yet to be drilled."
The Providence project covers 650 sq. km. and contains several recognized goldfields, including the Reedy Creek, Yea, Ghin Ghin and Alexandra gold fields, within which there are several high-grade historical gold producers.
These include Luckie Reefs at Alexandra with 36,000 oz., Langridge's mine at Reedy Creek with 20,620 oz., Doyle's mine at Reedy Creek with 13,431 oz., and Providence Reefs at Yea with 8,585 ounces, according to a security filing.
Additional assays are pending from drilling at other "high priority gold targets" at Reedy Creek.
At press time in Toronto, Fosterville South Exploration's was trading at 58 ?, 11.5% or 6 ?, per share within a 52-week trading range of 52 ? and $1.70. The company has 67.9 million common shares outstanding for a market cap of $39.3 million.
Aside from the Providence project, the company's principal properties are the 100%-owned Lauriston Gol project, Golden Mountain project and Moormbool project.