Mithril Resources (ASX: MTH) has discovered a new gold zone 3.3 kilometres south of its wholly owned Spargos Reward Gold Mine in Western Australia in a recent drilling campaign.
Three reverse circulation holes totalling 342 metres were drilled on two adjacent 100-metre spaced sections to test the significance of two historical drill intercepts that lie beneath a 700-metre north to south trending surface anomaly.
Importantly, the mineralisation discovered was contained within a zone of shearing and alteration identical to Spargos Reward.
Notable intercepts include 3 metres at 0.95 grams per tonne (g/t) gold from 46 metres, 1 metre at 1.03g/t gold from 70 metres, 3 metres at 0.95g/t gold from 99 metres, and 1 metre at 1.99g/t gold from 30 metres.
These results are equivalent to those seen within 100 metres of high grade gold mineralisation at Spargos Reward.
This combined with the target’s lack of effective drilling offer strong potential to find new occurrences of higher grade gold at the newly named Evans Prospect.
In conjunction with the ongoing Spargos Reward Gold Mine resource estimate, which is expected in the September quarter 2013, work continues to generate further targets surrounding the mine area.
These targets along with the newly identified Evans Prospect will be further assessed through ground follow-up and prioritised for the next phase of drill testing.
Spargos Reward
The Spargos Reward gold mine is one of the priority targets within the 75 square kilometre West Kambalda project area, which also includes the recently acquired Spargoville gold project.
The West Kambalda project area includes the historic high grade Spargos Reward gold mine and the Allison Gold Deposit, where an Inferred JORC Resource of 2.1 million tonnes at 1.3g/t for 86,800 contained ounces has been defined.
Spargos Reward was historically mined to a vertical depth of 120 metres (underground and open pit) with total production of about 29,260 ounces at 8g/t gold.
Mithril remains well-funded to continue its exploration programs with around A$3.1 million in cash at the end of December.
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