Kentor Gold (ASX: KGL) has intersected high grade gold below the NOA1 pit at its Murchison Gold Project in Western Australia from reverse circulation drilling carried out in February.
Best assays from the 10 hole program include:
- 13BNRC291: 9 metres at 5.5 grams per tonne gold from 78 metres;
- 13BNRC295: 7 metres at 5.13g/t gold from 86 metres;
- 13BNRC290: 3 metres at 9.17g/t gold from 96 metres;
- 13BNRC289: 1 metre at 49.6g/t gold from 94 metres.
The NOA1 deposit is interpreted to be the southern extension of the NOA2 deposit offset 200 metres by an eastwest trending fault as the geological sequence drilled in recent holes at NOA1 are similar to the sequence at NOA2.
Both are closely associated with the Burnakura Thrust shear zone, a major structure that extends about 2 kilometres and controls mineralisation at the NOA7/8, NOA4 and NOA6 deposits.
The southern extension of the shear zone south of NOA1 is under transported cover and has not been drill tested by previous companies.
Recent drilling at NOA1 suggests that mineralisation within the shear zone is of consistent moderate to high grade in fresh rock and therefore likely to continue both along strike to the south and down dip.
Importantly the deepest hole on the southern line, 13BNRC295 intersected gold mineralisation at a vertical depth of 100 meters while mineralisation at NOA2 extends to greater than 200 metres vertically giving a clear indication of the potential at NOA1.
The close proximity of the new mineralisation at NOA1 to the existing underground development at NOA2 is significant because it will allow any resource delineated at NOA1 to be mined from underground with a relatively low capital investment.
A 200 metre development drive would be sufficient to access the mineralised zone at NOA1.
Kentor has designed a 14 hole reverse circulation drilling program to test for resource extensions below and to the south of the existing drilling.
The drilling is planned on a 20 metre by 20 metre grid pattern that should further upgrade and increase the resource. All planned exploration expenditure is subject to approval by the administrators of its wholly owned subsidiary Kentor Minerals (WA) Pty Ltd, which holds the project.
Kentor had $8.3 million in cash as of 31 December 2012.
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