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Craig Nolan
Dateline Resources has revealed zones of elevated chargeability at both shallow and deeper levels in preliminary results from the latest ground- induced polarisation (IP) geophysical survey conducted at its Colosseum gold and rare earths project in California, the United States’ most populous state.
Management says a convergence of multiple geophysical datasets, along with fault structures identified from a geological mapping program, has combined to highlight the potential for structurally controlled, altered sulphide-bearing zones at depth.
The company believes the overlap between IP chargeability highs, earlier magneto telluric (MT) conductivity features and a regional United States Geological Survey (USGS) thorium radiometric signature is more than a coincidence. To its geologists, that convergence of independent datasets screams fertile ground and boosts the odds of uncovering more mineralisation at depth.
The mapped north-west trending fault structure, coincident with the geophysical anomalies, could be the icing on the cake.
The preliminary IP results indicate the chargeability zones occur at both shallow levels and at depth across the central project area. Using a five-line survey with 100m dipole spacing covering 13 line-kilometres, the survey targeted deep structural features interpreted from previous MT data and regional radiometric results to aid drill planning.
‘The data supports the theory of a large mineral system with deep structural and sulphide-hosted features.’
Dateline Resources managing director Stephen Baghdadi
Dateline has now engaged Mitre Geophysics to interpret the latest IP data and integrate its findings with existing MT and radiometric datasets to lock in prime drill targets for further gold and rare-earth mineralisation.
The company plans to prioritise areas of geophysical convergence to refine drill targets for an upcoming, expanded deep drilling program.
Dateline Resources managing director Stephen Baghdadi said: “The data supports the theory of a large mineral system with deep structural and sulphide-hosted features that may reflect mineralising plumbing beyond near-surface ore zones.”
The company says the IP survey included two northern lines targeting gold and fenite mineralisation and three southern lines following up conductivity features interpreted from MT inversion.
Fenite is a high-temperature rock formed after alteration when fluids from carbonatite magma affect surrounding country rocks. Carbonatite magmas can be a crucial source of rare earth elements.
Management has pointed to published research showing that the Sulphide Queen carbonatite at the nearby Mountain Pass rare earths mine hosts a suite of chargeable copper-iron sulphides. The company believes the sources of chargeability lighting up at Colosseum could be geological cousins to that same style of mineralisation.
Dateline recently beefed up its war chest with a $35 million placement to complete a bankable feasibility study (BFS) as it motors towards production at Colosseum.
Notably, the placement was conducted at an issue price of 31 cents per share, which appears to have been a good move by those acquiring the shares, with the price today hitting a peak of 49c on the news of the preliminary IP results.
The placement landed soon after two seasoned North American mining professionals, George Brack and Phillips Baker Jr, joined the company’s board as non-executive directors.
The company has plans to amplify its US presence and flex its precious and critical minerals muscle. Bringing on two long-term mining executives could well provide the boost Dateline’s profile needs among the resources faithful.
Dateline’s flagship Colosseum gold mine sits within the Walker Lane geological trend in East San Bernardino County, California. In 2024, the company delivered a JORC-2012-compliant mineral resource estimate at Colosseum of 27.1 million tonnes grading 1.26 grams per tonne (g/t) gold for a respectable 1.1 million ounces.
A previous scoping study released in May last year outlined a potentially solid mining operation, projecting production of 635,000 ounces over an initial eight years, with net revenues of US$827 million (A$1.245 billion) and an internal rate of return (IRR) of 61 per cent.
The study was based on a gold price of US$2900 (A$4340) per ounce – a level that now seems distant in the rear-view mirror, given the significant move in the price over the past 12 months or so.
With today’s price now roaring past US$5000 (A$7227) per ounce, the economics of the project have likely been pumped full of steroids.
A rampaging gold price, coupled with an insatiable US demand for its own homegrown supply of valuable rare earth minerals are shaping up as gale force tailwinds for Dateline’s Colosseum project.
Is your ASX-listed company doing something interesting? Contact: mattbirney@bullsnbears.com.au
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