Recently-minted Stavely Minerals (ASX:SVY) has intersected up to 5 metres at 1.38% copper, 0.25 grams per tonne gold and 11.8g/t silver at its wholly-owned Stavely Copper Project in Western Victoria.
Shares in the company are expected to trade higher today.
This is also the first instance of gold being associated with copper mineralisation at the Junction Prospect and is considered highly encouraging.
Drilling at the Thursday’s Gossan Prospect has returned 3 metres at 1.36% copper, 31.2g/t silver and 343ppm molybdenum form a ‘D’ vein as well as 196 metres at 0.13% copper in SMD003.
Partial assays from SMD004 have returned 52 metres at 0.23% copper associated with near-surface supergene enrichment. Assay results from the lower 440 metres are pending.
This indicates that drilling at Thursday’s Gossan is getting incrementally closer to the targeted porphyry copper-gold mineralisation at depth.
The results significantly advanced the search for porphyry copper-gold mineralisation at the project.
Further drilling at Junction will seek to intersect broader intervals of the higher grade mineralisation.
It also validates the company’s premise that previous explorers did not drill deep enough to test copper-gold mineralisation associated with a porphyry intrusion at depth.
Current drilling will provide geological vectors towards the targeted quartz-sulphide stockwork veining on the margins and apex of the porphyry intrusions at the Thursday’s Gossan and Junction prospects.
Thursday’s Gossan has an Inferred JORC Resource of 28 million tonnes at 0.4% copper.
The company had $4.1 million in cash as at 30 June 2014.
Stavely had raised $6.1 million through its fully subscribed initial public offering priced at $0.20 each. Shares in the company are currently trading at $0.45.
It also holds the Ararat Project in Victoria that has an Inferred Resource of 1.2Mt at 2% copper, 0.5g/t gold, 0.4% zinc and 6g/t silver hosted in Besshi-style VMS.
The Degrussa deposit is also considered a Besshi-style VMS.
Recent drilling has returned 5 metres at 2.1% copper, 0.56g/t gold, 0.48% zinc and 9g/t silver, 3 metres at 2.64% copper, 0.17g/t gold, 0.31% zinc and 3g/t silver as well as 1 metre at 5.89% copper, 0.55g/t gold, 2.31% zinc and 17g/t silver.
Ararat remains open at depth and along strike.
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