Transol Corporation has acquired the Southern Cross Bore Project in Northern Territory, including the emerging Johnnies Reward gold prospect, from Davenport Resources, and will recommence drilling at the site in coming weeks.

The deal will see Transol issue 60 million shares to unlisted Davenport. The acquisition also includes the Hatches Creek Project, 325km northeast of Alice Springs, where more than 2800 tonnes of tungsten was produced in the 1930s.

Transol says drilling at Johnnies will re-commence soon, aiming at extending the iron oxide-copper-gold (IOCG)-style system where recent drilling confirmed historic results and delivered some excellent new intersections including 24 metres @ 4.19 grams/tonne gold and 0.33% copper from 70 metres, and 34 metres @ 3.83 grams/tonne gold and 0.46% copper from 63 metres.

Soil sampling has identified a large anomalous zone of gold-copper mineralization immediately north of the main Johnnies Reward prospect at the Johnnies Reward project, 75km northeast of Alice Springs. This anomaly represents a priority target for follow-up exploration this year.

During November 2012 394 x 2mm soil samples were collected north of the Johnnies Reward prospect to extend the original Alcoa soil grid by 2km to the north. Samples were taken on a 50 metre x 100 metre grid and analysed for gold, silver, arsenic, bismuth and copper.

The results highlight an anomalous northwest-southeast trending corridor of +50ppb gold and +25ppm copper. The main anomaly, Black Angus prospect, is 300 metres-long and 180 metres-wide and occurs on the eastern edge of the grid with a peak value of 84ppb gold. Black Angus is open to the southeast and is coincident with a southeast trending fault zone which may be an important transfer structure for migrating mineralized fluids between the Pinnacles line and the Johnnies Reward corridor.

Completion of this transaction will see Transol put in place the final element of its plan to reposition as a focused gold-copper explorer in the Northern Territory with 100% ownership of a significant emerging mineral discovery close to Alice Springs with excellent logistics and existing infrastructure. Aggressive exploration activities are planned during 2013.

Transol’s managing director Angus Edgar says the company is excited by the exploration opportunities ahead at Johnnies Reward and Hatches Creek in such an under-explored area. “The geological potential of this region and opportunities available for junior explorers have been clearly demonstrated by the recent success of Kidman Resources at its Home of Bullion prospect.

“After completing two phases of drilling at Johnnies Reward in 2012, we have been very encouraged by the results we’ve seen, which have confirmed significant extensions to the gold-copper mineralization originally drilled by Alcoa 30 years ago. Our drilling has confirmed the basic geological model for Johnnies Reward as a large skarn system, while also demonstrating that the mineralisation may be more complex and widespread than originally thought – with opportunities to delineate significant zones of both high-grade gold and copper.”

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