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Australian Mines Ltd to drill near Northern Star's Plutonic Gold Mine

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Australian Mines Ltd (ASX:AUZ) will commence a 2,000 metres reverse circulation drill program at the Dixon gold prospect, located near Northern Star’s (ASX:NST) Plutonic Gold Mine, which has produced over 5 million ounces of gold to date.

The Dixon prospect, which is 180 kilometres north of Meekatharra, is hosted by a similar greenstone belt to that containing the nearby Plutonic Gold Mine and which has poured a massive 200,000 ounces of gold every year since the mine opened 26 years ago.

The new round of drilling will target the high-grade gold zone discovered by the company in October 2015.

The October 2015 drilling intersected 10 metres at 8.79 grams of gold per tonne from 130 metres and included individual lenses that graded almost 1 ounce of gold per tonne.

In April 2014, AUZ had signed an agreement to farm into Riedel Resources Ltd’s (ASX:RIE) Doolgunna-Marymia Project which hosts the Dixon gold prospect.

AUZ currently owns 51% of this project and will expend a further $850,000 by May 2018 to acquire an 80% interest.

AUZ had raised $1.5 million last month from a share placement and will be undertaking a pro-rata entitlement offer to existing shareholders to raise a further $1.46 million.

The share price of AUZ has doubled during the last three months.

 

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ASX:AUZ
Market: ASX
Market Cap: $51.67 m
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