Millennium Minerals gold resources likely to increase at Golden Eagle

Millennium Minerals (ASX: MOY) has found more success at the highly prospective Golden Eagle deposit, which is located within the 1.25 million gold ounce Nullagine Gold Project, with potential upside to the south west corridor.

The outcome of the latest drilling program has confirmed and further extend the on-strike potential of the southwest zone 275, metres beyond the currently proposed pit design.

Millennium said that the company considers likely that this zone will increase the Mineral Resource inventory at Golden Eagle, and that the results also confirm continuity of mineralisation in the central proposed pit area.

Highlights included:

- 9 metres at 1.65 grams per tonne (g/t) gold from 55 metres;
- 3 metres at 4.70g/t gold from 73 metres; and
- 7 metres at 2.00g/t gold from 26 metres.

Millennium added that a review of the immediate surrounding area shows excellent support for further extensions, and new comparable targets.

The highly anomalous Golden Eagle mineralised corridor extends for an extensive plus 2 kilometres south west from the current reverse circulation drill tested zone.

Additional exploration has already been planned to follow up on the latest positive results, with a 5,100 metre infill rotary air-blast and up to 1,500 metres of reverse circulation drilling in the area.

The significance of the latest hits is the conformation that mineralisation holds together suggesting the south west corridor that extends for some 4 kilometres could very well yield substantial resources.

The Creasy deal gives Millennium access to the entire anomalous belt.

Boosting the Golden Eagle footprint

Golden Eagle already hosts the majority of the gold resource attributable to Nullagine, and earlier in the year Millennium through a strategic joint venture boosted the company's footprint around the deposit.

If new exploration confirms an extension to this mineralised corridor within the new tenements, then Millennium has the potential to significantly increase the company's gold inventory.

The joint venture with the Creasy Group covers the Mosquito Creek Formation, providing Millennium with an immediate 70% interest in the tenements.

Consideration for the joint venture is Millennium will issue Creasy just over 8 million shares for the stake, with Millennium sole funding all required expenditure.

Creasy is not required to provide funding until the completion of a Bankable Feasibility Study and a decision to mine.

Comment

The appearance of Mathews Capital Partners on the register of Millennium is a significant vindication for the company and its Nullagine project.

Millennium is ticking the boxes at Nullagine and appears significantly undervalued on current valuation.