White Cliff Minerals (ASX:WCN) has found high grade gold at 5.5 g/t from drilling at its Merolia Nickel and Gold project in Western Australia.
The results from five holes tested for gold at the Ironstone prospect and best assay results included:
- 12 metres at 1.85 g/t gold from 116 metres;
- 4.5 metres at 5.5 g/t gold including 0.28 metres at 24 g/t gold from 119 metres; and
- 1 metre at 4.2 g/t gold from 175 metres.
A total of 910 metres of drilling was completed testing three main targets.
The drilling in 2015 was following up historical drilling which returned an 8 metre at 24 g/t gold intercept consisting of sheared basalts and quartz veining. While adjacent holes encountered significant mineralisation including: 4 metres at 5 g/t and 4 metres at 2 g/t gold.
It was thought that historical drilling targeted the mineralisation too far to the east, missing the main prospective zone which is completely untested for at least 500 metres.
The new exploration model indicates that the mineralisation is plunging to the south-east and trending parallel with the regional shear zone and may represent a series of tensional quartz veins.
Todd Hibberd, managing director and geologist, commented: “The assay results confirm our view that the Ironstone gold project is very prospective for economic accumulations of gold.
"The structural complexity provides multiple locations for the deposition of gold and hence we will commence a close spaced soil sampling to identify the best drilling locations prior to commencing further drilling.”
Analysis
The drilling has successfully confirmed that significant gold mineralisation is present within the widespread structural alteration system at Ironstone.
The drill results should buoy WCN shares this morning.
Close spaced soil sampling will find the best locations for further drilling at the project.
While the Chanach gold and copper project with two JORC mineral resources; the Aucu high grade gold resource and the Chanach copper oxide resource is a priority, the opening drill results from Merolia in Western Australia provide significant encouragement for ongoing exploration.
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