Brimstone Resources Limited’s flagship operation is the Penny’s Find Project, located 48 kilometres northeast of Western Australia mining town of Kalgoorlie.
LionGold Corp owns 100% of Brimstone from October 2012. Brimstone thus far has earned a 40% interest in the Empire Resource Tenements within the Penny’s Find deposit. Up to 100% interest in the Empire tenements (28 leases covering 43.3 square kilometres) and up to 70% interest in the Rubicon Resources tenements (7 leases covering 7.4 square kilometres) may be earned in through staged acquisition agreements. Brimstone also has 100% control of a 8.6 square kilometres Exploration Licence application at Penny Lake, southwest of the Penny’s Find Mining Lease, and 100% control of Stawell East in Central Victoria.
The Golden Feather Tenements
The Golden Feather Tenements are located 595 kilometres northeast of Perth within the Penny’s Find gold deposit, which is part of the Eastern Goldfield. These comprise 36 Exploration Licenses collectively covering 59 square kilometres. Penny’s Find is some 20 kilometres east of the Kanowna Belle Gold Mine which produces some 220,000 ounces of gold per annum. The Kalgoorlie area is home to Australia’s largest open pit mine which produces around 850,000 ounces of gold annually.
Gold mineralisation is associated with quartz veining, averaging 8 metres in thickness and over a strike length of 250 metres, defined to a depth of 160 metres, based on initial drilling. The ore is medium-to-high grade, and most is coarse-grained. Metallurgical testing has shown both oxide and fresh mineralisation to be free-milling with a gravity recoverable component of 60-70% and a total recovery of 97-98%.
Stawell East is a 246 square kilometres exploration tenement 100% controlled by Brimstone and located within the Stawell Zone to the east of Stawell Gold Mine in Central Victoria. The site is also within proximity of Castlemaine’s Ballarat gold processing plant. The ore body is characterised by clusters of high grade gold deposits in quartz veins.
In September 2010, Brimstone Resources entered into an earn-in agreement with Empire Resources Ltd. Brimstone attempted an IPO on the ASX in May 2011, but the effort was not successful given difficult market conditions.
The Kalgoorlie area has been mined by prospectors since the late 1890s, when the Penny’s Find deposit was discovered. Modern gold exploration only commenced from 1983.