Carnavale Resources (ASX:CAV) has revealed assays from the Little Butte Gold Project in Arizona, U.S. where it is focused on defining sufficient resources to support a low capex open pit mining operation.
Significant drilling results from the Eastern Zone include 22.9 metres at 1.44 g/t gold from 19.8 metres, including 13.7 metres at 2.15 g/t from 22.9 metres; and 4.6 metres at 33.65 g/t gold from 22.9 metres.
Other high grade results included 22.9 metres at 4.06 g/t from 6.1 metres, and 24.4 metres at 3.4g/t from 24.4 metres.
Data assessment generated walkup drill targets with near-term potential to define a significant oxide gold resource from surface to at least 110 metres depth with additional deeper sulphide potential.
The goal is to define an oxide resource similar to the nearby Copperstone Gold Deposit, which produced more than 500,000 ounces of gold from oxide open pits and is currently being developed as a high grade underground gold mine.
Previous exploration over the project area has highlighted two priority targets at the Railway Prospect. The first target is a 900 metre long IP resistivity anomaly, coincident with zones of shallow oxide gold mineralisation.
The second deeper target is a strong chargeability high IP anomaly located semi-coincident and at depth. This anomaly requires further definition however it is considered prospective for sulphide rich copper-gold mineralisation below the depth of weathering.
Two strong trends of high grade primary gold mineralisation are hosted in deeply weathered brecciated, sheared and veined siltstones and sandstones.
The high grade gold mineralisation is typically associated with massive hematite rich veins with stockworks of thin quartz veining to massive breccias with a hematite rich matrix.
Carnavale is currently planning to complete a program of selected infill and extension drilling, to further test continuity of both the high grade and supergene zones at the Railway Prospect during October, subject to regulatory approvals.
The company is valued at around $3 million and holds about $1.5 million in cash.
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