Golden Cross Resources (ASX: GCR) has kicked off a drilling campaign at the company's Mount Isa Phosphate Projects.
First off is the Highlands Plains project, located northwest of Mount Isa, where established phosphate resources will be defined in more detail - with the program forecast to be completed this month.
The rig will then move to the Lily & Sherrin Creeks project, which is due west of Mount Isa - which is highly prospective given the history in the 1960’s and 1970’s where moderate grade phosphate resources were identified.
Golden Cross added that higher grade material from this project could be suitable for direct shipping.
Drilling is forecast to be completed in September.
The third project is Quita Creek, positioned to the southwest of Mount Isa, and will be the last of the projects to be tested in the current program - which is scheduled for September-October.
Boosting the chances of exploration success for Golden Cross, the Queensland government has compiled results from historical drilling which demonstrate that substantial (but not JORC-compliant) phosphate resources are located in each of company's tenements.
These resources make up one third of the resource inventory quoted by Golden Cross’s joint venture partner Legend International, with the aim that the drilling program will raise the status of the existing deposit resources to meet JORC requirements.
Legend must spend a total of $3 million to earn an 80% interest in the tenements, with Golden Cross free-carried to a decision to mine.
Green Cross retains a 100% right to all other minerals which may be present including uranium, base & precious metals and rare earth elements - which are known to have a strong association with phosphate deposits elsewhere in the Georgina Basin.