White Cliff Minerals Ltd (ASX:WCN) has intersected up to 41.5 g/t gold from recent drill holes at the Quartz Zone within the Aucu gold project located in the Kyrgyz Republic of central Asia.
Highlights from the latest assays include 5 metres at 9.9 g/t gold and 19 metres at 0.74% copper.
The new mineralised zones intersected in the two recent drill holes extend the Quartz Zone a further 50 metres northwest of the initial drill line, which identified exceptional mineralisation from surface to 100 metres depth while remaining open at depth.
The Quartz Zone outcrops at surface in all road cuttings completed and visible gold has been identified in rock samples at surface in all road cuttings over an elevation range of 140 metres.
Todd Hibberd, managing director, commented: “The exceptional gold assays confirm the visible gold panned from the quartz reef at surface.
“We have high expectations that drilling will continue to deliver more substantial gold intersections at depth and along strike.”
Drilling update
A total of 3,741 metres has been completed in this year’s drill program consisting of 16 diamond holes and 14 reverse circulation holes.
Highlights from the recent assays within the Quartz Zone include:
- 5 metres at 9.9 g/t gold including 1 metre at 41.5 g/t gold;
- 2 metres at 6.7 g/t gold;
- 7 metres at 3.1 g/t gold; and
- 19 metres at 0.74% copper including 2 metres at 2.38% copper.
The company is awaiting assay results for a number of completed holes.
Drilling continues at the top of the Quartz Zone while further roads are bulldozed at the bottom of the hill.
The company expects to complete another 1,000 metres of drilling in 2016.
Aucu gold project
White Cliff is advancing its 89% owned Aucu gold deposit located in the Kyrgyz Republic and its 100% owned Merolia gold project located near Laverton, Western Australia.
Aucu hosts a resource of 1.15 million tonnes grading 4.2 g/t gold for 156,000 ounces of contained gold at a 1.0 g/t cut-off grade.
Drilling has discovered significant surface expressions of visible gold along strike from this resource including 8 metres at 55.2 g/t gold and 4 metres at 59.9 g/t gold.
The Quartz Zone occurs at the eastern end of the Eastern Gold Zone adjacent to the main porphyry intrusion.
High grade gold mineralisation is largely confined to the quartz reef which ranges from 1-3 metres wide and can be traced at surface over 210 metres length.
SPP details
White Cliff opened its share purchase plan (SPP) yesterday, which will raise up to $1.25 million through the offer of 166.6 million shares priced at $0.0075.
The SPP follows the recent completion of an oversubscribed $1.5 million share placement to professional and sophisticated investors.
The SPP offer is underwritten up to the value of $500,000.
SPP shares will come with a 1:3 free attaching option exercisable at $0.013 and expiring on 31 December 2018.
The SPP will close on 2 December, 2016.
Analysis
Results continue to suggest the Quartz Zone is emerging as an area at Aucu with potential to host shallow, high-grade gold resources.
Both the recently completed placement and SPP have been underwritten, which is a testament to the current gold projects White Cliff is advancing.
These funds will also allow White Cliff to commit to continued exploration at both Aucu and its Merolia gold project in Western Australia.
With activity planned at both Aucu and Merolia, news flow is expected to continue, keeping the company and investors leveraged to exploration upside.
The company will endeavour to complete as much drilling as possible at Aucu before autumn weather conditions make drilling too difficult to continue.