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White Cliff Minerals Ltd diamond drills high grade gold at Aucu

The first six holes of the 2016 diamond program have assisted White Cliff in defining the sources of gold mineralisation as it looks to evolve Aucu into a multi-million ounce deposit.

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White Cliff Minerals Ltd (ASX:WCN) encountered grades up to 12.1 g/t gold in its latest diamond drilling at the 89% owned Aucu gold deposit in Kyrgyz Republic, central Asia.

The initial six hole program targeted the high grade Eastern Gold Zone (EGZ) within Aucu and encountered gold mineralisation in all holes.

Intersections include 2.6 metres at 4.14 g/t gold, 2.6 metres at 4.8 g/t gold and 0.5 metres at 8.4 g/t gold.

The drill results have prompted a review of the resource modelling, which now forecasts the gold mineralisation to be in a series of high grade shoots.

A third drill rig has been mobilised to accelerate the program and further drilling results are due shortly.


Drill result details

The initial six drill holes were designed to test 50 vertical metres above and below the high grade intersections encountered in the 2015 drill program.

Diamond drilling intersected gold mineralisation including:

- 2.6 metre at 4.14 g/t gold from 17.6 metres including 0.4 metres at 12.1 g/t gold;
- 0.5 metres at 8.4 g/t gold from 87.5 metres;
- 0.5 metres at 7.4 g/t gold from 62.5 metres;
- 2.6 metres at 4.8g/t gold from 48.8 metres; and
- 2.0 metres at 3.5 g/t gold from 70 metres.


Resource remodelling

The grade disparity between the exceptionally high grade 2015 results and the current results prompted a review of the mineralisation model.

The review indicates that the exceptionally high grades are possibly due to the intersection of two structures.

The intersection of the two structures provides a series of high grade shoots that occur along the intersection of these structures.

Further drilling will target these zones that have largely been missed by the initial holes of the current drill program.


Diamond drilling continues

As of the date of this release a total of 1,374 metres has been completed consisting of 9 diamond holes.

Drill rig 1 has commenced drilling a new hole targeting mineralisation 100 metres along strike of the mineralisation encountered in 2015 in a drill hole which intersected 8 metres at 55 g/t gold.

Drill rig 2 has commenced drilling a new hole targeting mineralisation immediately above the same mineralisation encountered in 2015 of 8 metres at 55 g/t gold.


Aucu gold deposit

The 89% owned Aucu gold deposit is located in the Kyrgyz Republic, which is a democratic republic bordering Kazakhstan and western China.

The company announced a maiden inferred resource for the Aucu gold deposit above a cut-off grade of 1 g/t gold of 1.15 million tonnes grading 4.2 g/t gold for 156,000 ounces of contained gold.

In 2015, drilling identified exceptional gold mineralisation east of this resource at the EGZ over a strike length of at least 500 metres.

Results included 8 metres at 55.2 g/t gold and 4 metres at 59.9 g/t gold.

Overall metallurgical recovery of all mineralised zones discovered at Aucu is 99% with gravity recoverable gold averages of 88.6%.


Analysis

The first six holes of the 2016 diamond program have assisted White Cliff in defining the sources of gold mineralisation as it looks to evolve Aucu into a multi-million ounce deposit.

White Cliff remains highly leveraged to exploration upside with two drill rigs now drilling holes located near to the 2015 drill hole that intersected 8 metres at 55 g/t gold.

The Aucu gold project has the opportunity to provide White Cliff with a quick pathway to early production

As Aucu is largely a sedimentary hosted gold deposit with favourable metallurgical properties, this indicates low mining and processing costs.

With high grade gold mineralisation at surface, this also provides the opportunity for a low capital cost, small scale operation providing significant production ounces.

The company ended the June quarter with $1.8 million in cash.

 

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