NewPeak Metals Ltd (ASX:NPM, OTC:NPMFF, FRA:NPM) earlier this week confirmed the start of diamond drilling at its Las Opeñas gold project in Argentina, with the company targeting the scale potential of a large gold-dominant polymetallic system in one of the country’s most active mining regions.
Managing director Mark Purcell said the campaign would initially comprise a minimum 2,500 metres of drilling across around nine holes, although the program could be expanded depending on field observations and funding availability.
Purcell said the company was targeting a breccia-hosted system mapped over approximately 6.8 kilometres at surface, with historical drilling already demonstrating broad mineralised intercepts.
The company has returned to the project after earlier work conducted under its former Dark Horse identity in the early 2020s. Purcell noted that changing market conditions had improved the attractiveness of large-scale gold opportunities.
Purcell said higher gold prices had increased investor interest in lower-grade bulk-tonnage deposits capable of supporting large operations.
Las Opeñas is located within a recognised mining district in Argentina, close to major projects and operations including Barrick and Shandong’s Veladero mine as well as Challenger Gold’s Hualilan project. Purcell said the geological setting featured favourable breccia veins, hydrothermal systems and major fault intersections.
The current drilling campaign is expected to take approximately eight weeks to complete, with assay results anticipated six to eight weeks later.
In addition to Las Opeñas, NewPeak Metals is awaiting assay results from drilling at the Tansey project, where the company recently tested extensions to mineralisation surrounding a historic underground gold mine abandoned in the 1940s.
Purcell said assay delays had been frustrating but stressed that the company’s view of the prospect remained unchanged. He said NewPeak Metals remained excited by the opportunity at Tansey and looked forward to releasing results in the coming weeks.
Upcoming catalysts for investors include drill assay results from both Tansey and Las Opeñas, with Purcell describing the projects as potential discovery opportunities for the company.
Interview highlights
- NewPeak Metals has commenced a minimum 2,500-metre diamond drilling program at the Las Opeñas gold project in Argentina.
- The campaign will initially include about nine drill holes, with flexibility to expand based on results.
- Las Opeñas hosts a breccia system mapped over approximately 6.8 kilometres at surface.
- Historical drill intercepts include:
- 115 metres at 0.58g/t gold
- 126 metres at more than 2g/t gold
- The company aims to test both the scale of the mineralised system and the potential for grades to increase at depth.
- Mark Purcell said higher gold prices have improved the attractiveness of large-scale, lower-grade gold deposits.
- Geological indicators include breccia veins, hydrothermal systems and major fault intersections.
- The project is located in a well-established Argentine mining province near major operations including Veladero and Hualilan.
- The drilling program is expected to take around eight weeks, followed by six to eight weeks for assays.
- NewPeak Metals is also awaiting assay results from drilling at the Tansey project around a historic underground gold mine.
- Purcell described both Las Opeñas and Tansey as potential discovery opportunities.
Proactive: NewPeak Metals has begun drilling at its Las Opeñas gold project in Argentina, launching a 2,500-metre campaign designed to test the scale potential of a gold-dominant polymetallic system in one of the country's most active mining regions. Joining me to talk us through the program is Managing Director Mark Purcell. Mark, it’s good to see you again.
Mark Purcell: Well, of course, Jonathan, great to be here.
Proactive: It’s good to have you. Let’s go through this drilling program. Talk us through the key objectives and what success looks like for you.
Mark Purcell: Sure. So it’s a breccia system that’s been mapped at approximately 6,800 metres at surface, so it’s quite a large area. We have some historic drill intercepts that are long, such as 115 metres at 0.58 grams per tonne gold and 126 metres at over 2 grams. We really want to find the scale of this breccia system, but also test the theory that, based on previous results, it looks possible that grades are increasing at depth.
Proactive: I want to talk a little bit more about that historic drilling. How is the new program designed to build on and extend those results?
Mark Purcell: The historic drilling originally focused on the area, but in the early 2020s our company, previously called Dark Horse, drilled an area called Jason, which had some outcropping veins that provided some nice-looking grades but didn’t quite demonstrate the scale. We’re really returning to the area because, quite frankly, since it was drilled earlier on, gold prices are higher now and lower-grade, large-scale gold deposits are certainly more attractive.
Proactive: You’ve described Las Opeñas as a potentially large-scale, gold-dominant polymetallic system. Talk me through the geological indicators that give you confidence.
Mark Purcell: Sure. We’ve got both the right geology and the right geography. Geology-wise, we’ve got breccia vein and hydrothermal systems locally, but we’re also sitting on the intersection of some major faults in the area. Geography-wise, we’re in an established mining province with operations such as Barrick and Shandong’s Veladero mine and Challenger Gold’s Hualilan project not too far away.
Quite frankly, we’ve got the resources and the skill set here, and it’s a great place to be exploring.
Proactive: How long is the program going to be?
Mark Purcell: If we do the minimum 2,500 metres, we’re talking about around eight weeks, with another six to eight weeks for assaying. We do have the option to extend that based on what we’re seeing downhole and also depending on funding.
Proactive: It’s not the only work going on. You’re also waiting for results from Tansey. Can you talk us through what you’re expecting there?
Mark Purcell: Absolutely. We drilled around a historic underground gold mine that was dug about 80 metres deep and then abandoned in the 1940s. We’re really testing extensions of that mineralisation as well. The assay results have been delayed, which is a little frustrating, but nothing has changed with the prospect. We’re still very excited to see those results and looking forward to releasing them.
Proactive: Plenty to look forward to with the drilling and results to come. What’s next for the company over the next few months?
Mark Purcell: As you mentioned, we’ve got the Tansey results expected in the next few weeks and then Las Opeñas results in the coming months. We’re hoping to have some very attractive drill results there as well, really from two potential discoveries.
Proactive: Plenty to look forward to, and I’m sure we’ll talk about all those developments as they come through. Mark, thanks for your time and good luck with what’s to come.
Mark Purcell: Thanks, Jonathan. Appreciate your time.