Koonenberry to Expand New South Wales Position with Gold and Copper Projects

Koonenberry Gold (ASX:KNB) is adding "highly prospective" gold and copper assets in New South Wales to its exploration portfolio via two separate transactions, the company said on October 17.

It will acquire the Enmore gold project from Global Uranium and Enrichment (ASX:GUE,OTCQB:GUELF), and the Lachlan projects through the acquisition of the entire issued capital of private company Gilmore Metals.

The company said in a press release that it sees the purchases as transformative — they will expand its land holdings to 4,410 square kilometres, giving it one of New South Wales' most significant portfolios.

Koonenberry has received firm commitments from the investment community to raise AU$4.5 million, with support from major shareholder Lion Selection Group (ASX:LSX) and incoming funds from Lowell Resources (ASX:LRT).

“With a concurrent capital raising … the company will be in a very strong position to fund its planned activities. We believe this portfolio of 100 percent-owned and free carried projects are extremely value-accretive for shareholders and have outstanding potential to yield a significant discovery,” said Dan Power, the firm's managing director.

Enmore is located 20 kilometres south of Larvotto Resources' (ASX:LRV) gold-antimony mine, and shares similar geology and prospectivity. It is located in the New England Fold Belt and has orogenic gold mineralisation.

On its website, Global Uranium and Enrichment notes that it completed 10 reverse-circulation drill holes at Enmore's Sunnyside and Bora prospects in 2021, returning "significant gold values" from all of them.

This exploration work led to a 2022 diamond drill campaign, during which the company says that it demonstrated Enmore's potential as an emerging high-grade gold project.

Koonenberry plans to drill at Enmore in the near future, and will look to test Sunnyside’s high-grade shoot potential. Other planned work will include relogging and resampling of historical drill core and additional surface sampling.

The company may also look at doing electrical geophysics to focus additional drilling.

The Lachlan projects are made up of 10 exploration licences that are “highly prospective” for porphyry copper-gold, epithermal gold and orogenic gold systems. The combined area of the properties stands at 1,766 square kilometres, giving Koonenberry leverage in terms of land position to compete with major and junior exploration companies.

Koonenberry is currently prioritising multiple pre-defined targets and prospects at the Lachlan projects in order to move toward readiness for drilling. The properties are in the Lachlan Fold Belt, and next steps will likely include reconnaissance field work, geochemical surveys and additional geophysical work and drilling.

The company is also working at its Koonenberry project, which it says is "highly prospective" for Victorian-style orogenic gold deposits. The asset is also located in New South Wales, with approvals for drill testing anticipated soon.

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Securities Disclosure: I, Gabrielle de la Cruz, hold no direct investment interest in any company mentioned in this article.