Recent fieldwork has significantly enhanced prospectivity of the project, which is currently considered to be one of the country's most prospective gold regions.
The company is registered under the Pooled Development Program run by the Australian Federal Government and allows investors to receive capital gains and dividends tax free.
This allows the company to invest in the "materials supply chain for high-technology products in general" and includes all stages of the supply chain for high-technology products from sale of any products through to the raw materials contained within them.
SOR's main investment is currently in 100% owned Strategic Materials Pty Ltd, which is focused on exploration for raw materials that include rare and precious metals which are used in a growing variety of technology products.
Golden Blocks and West Wanganui Goldfields, South Island of New Zealand - 100% owned
Strategic Materials Pty Ltd is the first modern explorer to undertake development of the historic Golden Blocks and West Wanganui Goldfields situated on the Northwest tip of the South Island of New Zealand that covers 132 square kilometres and contain multiple styles of gold mineralisation. This covers:
The historic Aorangi Mine reported a head grade of 46 grams per tonne from its battery, until water ingress and labour issues shut the mine in 1914.
Rock grab samples from the upper levels of the Aorangi Mine have assayed 35.85, 16.53 and 1.47 grams per tonne of gold.
Representative rock chip sampling included 0.4 metres at 13.19 grams per tonne; 0.7 metres at 5.62 grams per tonne; 0.7 metres at 2.37 grams per tonne; and 0.9 metres at 1.62 grams per tonne gold.
The No. 1 Level and No. 2 Level adits are open and provide access into mine, whereas the No. 3 Level adit is partially blocked with sediment. Sampling is only conducted within safe areas of the mine.
A panned concentrate sample of 16.27 grams per tonne from the catchment area above and to the west of the mine may reflect either further gold mineralisation or weathering of surface residual gold, and is not sourced from historic mine workings.
West Wanganui is located 5 kilometres to the southwest of the Aorangi Mine and produced concentrates from panning that included 24.33g/t, 14.49g/t, 4.07g/t, 3.54g/t, 1.83g/t, and 1.17g/t gold.
A geophysical survey was also flown and initial interpretation completed.
The gold samples were collected from a catchment area that was originally identified in 1905 and is reported within intrusive rocks, a model unknown to the old diggers.
Upper Webb stream
This area is located 4 kilometres south of the Aorangi Mine and produced panned concentrate results from all samples that included 51.28g/t, 39.99 g/t, 39.73 g/t, 21.25g/t, 6.85 g/t.
The source of this gold is unknown and geology is quite different to the Aorangi Mine. There are no historic workings in the area and mapping shows potentially favourable structures for gold accumulation, and now becomes a key area for future exploration.
Strategic Elements has increased its commitment to the area by lodging an additional prospecting permit application covering 95.2 square kilometres that abuts its current landholdings.
September quarterly financial results
The Company maintained a very low cash burn for the September quarter of $269,000 made up of $125,000 for project development, and very low staffing costs of $79,000. Cash held at the end of the quarter was $1,463,000.
Clearance of the No 3 Level will provide access to a number of existing ore passes and winzes connecting the various levels which are still in good condition.
Additional prospecting across the permit areas has high potential for definition of high grade gold within virgin territory.
The current exchange rate for the New Zealand dollar places it at US$0.77 and compares with an Australian dollar that is currently valued at US$0.88. Gold is currently trading at US$ 1,145.70 per ounce or NZ$1,487.92 per ounce.
So gold operations out of New Zealand have an advantage of approximately 15% when viewed in $NZ versus A$ terms.
This provides a significant and solid underpinning for a small scale miner attempting to develop a high grade gold mine.
Proactive Investors Australia is the market leader in producing news, articles and research reports on ASX "Small and Mid-cap" stocks with distribution in Australia, UK, North America and Hong Kong / China.