Laconia Resources' (ASX: LCR) recognition of the prospectivity of its 701 Mile Project has been further validated with the award of a $150,000 grant by the Western Australian Government to assist with exploration.
The 701 Mile Project has a prime location in a region that hosts a number of other major discoveries including base metals deposits at Kumarina and Abra, as well as basement-hosted gold at Karlawinda Bore.
Demonstrating the prospectivity of the project, 701 Mile lies adjacent to a large crustal lineament interpreted to be the continuation of the Tangadee Linament.
A number of favourable magnetic structures and targets have been shown to be prospective for base metals, gold and uranium.
Further exploration upside exists with areas highly anomalous in silver shown to extend for up to 15 kilometres.
Laconia plans to expand its auger drill coverage and also conduct an infill auger drill program at 701 Mile during the remainder of 2012.
The company will then undertake geophysical surveys over the most promising areas.
Laconia is required to match the WA Government's $150,000 grant, with the co-funded drill testing of coincident geochemical and geophysical targets scheduled for the June quarter 2013.
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