Gold Mountain Ltd (ASX:GMN) has confirmed visible gold from an initial 92 metres of trenching at its flagship project, Crown Ridge in Papua New Guinea.
Incidentally, the company’s share price has been rallying over the last one month, rising about 334% since 3 August 2016.
The current trenching program has been undertaken to investigate magnetic anomalies defined by the processing of the ground magnetics surveyed during 2015.
14 trenches, totalling 92 metres in length were excavated to depths ranging from 2 metres to 4 metres.
A cluster of trenches located to the northwest of the Crown Ridge camp contained visible gold in panned concentrates.
This result reinforces a model of gold mineralisation associated with the fractures of the rim of a volcanic crater.
The latest results underpin the ongoing trenching program and extensive helicopter-borne magnetic surveys exploring the interpreted ‘volcanic crater rim’ geology at Crown Ridge.
The trenching program will continue, with the assay results of completed works to be received shortly.
Gold Mountain had a cash balance of $1.2 million as at 30 June 2016.
Last month, the company raised $2.3 million from a share placement to fast-track exploration at the Crown Ridge Gold project.
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