Kent Exploration will re-commence exploration activities at the Lyell and Alexander River projects on New Zealand’s South Island after an agreement to consolidate the company’s shares was made in a bid to boost working capital for the company. More than 21 million shares, or almost one-quarter of the company, will be consolidated into one new share for every 10 old ones.
The company has three gold prospects in the historical, highly prolific, Reefton goldfield district where mineralization typically consists of high-grade free milling gold in veins, often surrounded by a lower grade halo of refractory ore.
A 3000 metre diamond drill program is under way on the Alexander River project where Kent completed the first phase geological assessment program in December 2009 and an IP survey in April 2010.
The closest major mines to the properties are Blackwater, which produced about 750,000 ounces of gold prior to closing after a shaft collapse in 1952, the 105,000 ounce Big River and the Globe Progress, which reportedly produced about 430,000 ounces of gold from underground workings and which is the location of a newly developed, and currently operating OceanaGold mine.
These three mines and about 20 other smaller historic mines are immediately to the northwest of Alexander River. At the Lyell claim group in the north, the Lyell mine produced about 91,000 ounces of gold.
Historic reports indicate that approximately 8 million ounces of placer gold have been recovered in the Reefton and district gold camps and 2 million ounces of lode gold from the Reefton mining camp.
Kent will complete the sampling/assaying of the graphitic intersections identified during the 2011 diamond drill program at Alexander River that reportedly contain an historic potential gold resource of 4 million tonnes @ more than 5 grams/tonne gold. It will also continue exploration on the high grade Red Queen prospect at Lyell which had a reported average production grade of 43.54 grams/tonne over about half a metre. The highest historic gold grade reported at Red Queen was 175 grams/tonne gold while in 2009 the company sampled 69.4 grams/tonne gold at Red Queen.