Hexagon Energy Materials receives Exploration Incentive Scheme boost for Bent Creek drilling

Hexagon Energy Materials Ltd (ASX:HXG) has received Western Australian State Government funding support to drill targets at Bent Ridge gold prospect, part of the Halls Creek Project in WA's north. The support is by way of a successful application for co-funding through the Government’s Exploration Incentive Scheme which is assessed on a project by project basis for drill testing greenfield prospects such as Bent Ridge. Drilling next field season The Bent Ridge program is a part of a larger Halls Creek Project drilling campaign scheduled for the 2021 field season. The plan at Bent Ridge will comprise about 1,500 metres with the co-funding accounting for around half of the allocated $200,000 drilling budget. Hexagon has reported new gold in soil anomalies at Bent Ridge and Golden Crown South at the culmination of the previous 12 months’ targeting work and drilling will target these. Bent Ridge targets   At Bent Ridge, two target zones of 0.8 kilometres and 2.4 kilometres in strike-length were delineated within an overall 3.5-kilometre trend of gold anomalies, with anomalous pathfinder elements such as arsenic and base metal results confirming the significance of the results. Prospectivity for gold mineralisation is further enhanced by a historical geophysical survey over 25% of the newly defined soil anomalies which comprised a strong conductive and chargeable Induced Polarisation response associated with a mapped siliceous gossanous ridge. The mapped rocks and the geophysical response are interpreted to be indicative of the presence of sulphide minerals, commonly associated with gold mineralisation. Exploration next steps The company is planning a larger drilling campaign over the Halls Creek Project which will include  Golden Crown South Prospect and various high-grade gold targets along the Townsite-Lady Helen trend. This work is planned to start at the beginning of the 2021 field season. Pedirka hydrogen update The company recently signed a confidentiality agreement with Ebony Energy Limited to conduct due diligence on Ebony’s Pedirka Hydrogen Project in the Northern Territory. This project is planned to be a zero-emission ‘blue’ hydrogen project, utilising resources from Ebony’s exploration licences and targeting domestic and international hydrogen markets. Hexagon has engaged an independent technical consultant which is well advanced on its due diligence. A key focus is on the requirement for Ebony to complete a pre-feasibility study, which will include a significant exploration drilling program seeking to establish a mineral resource estimate. Potential transaction In tandem with its due diligence, Hexagon has an outline framework with Ebony Energy on the form, structure and terms of a potential transaction. There is strong interest and enthusiasm from both sides to thoroughly assess this opportunity and progress to a positive conclusion. The company clarifies that this remains a caveat and there is no certainty a transaction will occur.