Pantoro (ASX:PNR) has intersected high grade gold in first phase drilling below the current Wagtail open pits within its Halls Creek Project in Western Australia.
The objective of the drill program was to evaluate the continuity of mineralisation beneath the open pits and to assess potential for underground mining after the open pits are completed.
The drill program has targeted and intersected mineralisation at depths of between 110 and 150 metres below surface including 3.6 metres at 7.67 g/t gold from 133 metres down-hole.
Paul Cmrlec, managing director, commented: “Open pit mining at Wagtail has continued to uncover continuous, high grade veins.
“It is very pleasing to see the initial drilling below the current open pit designs delivering high grades similar to those seen at the Nicolsons mine.”
Drill result details
All holes intersected mineralisation at the targeted zones and the mineralisation remains open at depth and along strike.
Significant intersections include:
- 3.6 metres at 7.67 g/t gold from 133.0 metres including 1.9 metres at 11.7 g/t gold;
- 2.6 metres at 6.46 g/t gold from 138.4 metres including 0.35 metres at 27.1 g/t gold;
- 1.2 metres at 5.11 g/t gold from 126.5 metres;
- 1.4 metres at 7.18 g/t gold from 146.2 metres including 0.8 metres at 11.7 g/t gold; and
- 3.4 metres at 4.36 g/t gold from 168.7 metres including 0.7 metres at 14 g/t gold.
Drilling will continue throughout the remainder of the open pit life with the objective of being able to commence a second underground mine soon after the open pits are completed.
Background
The 100% owned Halls Creek Project in Western Australia hosts the producing Nicolsons underground gold mine and the Rowdies and Wagtail open pits.
First underground production of gold was achieved in September 2015 and the production profile continues to grow as Nicolsons looks to become one of the lowest cost, highest grade underground gold mines in Australia.
The Nicolsons underground mine has consistently overcalled the reserve at an average of 186% on the first three levels mined.
Mining at the Wagtail North, Wagtail South and Rowdies pits commenced during the second half of 2016.
Pantoro are also conducting exploration at prospects within the Halls Creek project to identify new high grade gold deposits outside the known JORC resources.
Analysis
Open pits at Wagtail are designed to a maximum depth of 65 metres so gold intersections at these depths shows the potential for extended mine life through follow-up underground operations.
With mining ongoing at the Nicolsons underground mine and open pits and gold trading at A$1,580 per ounce, Pantoro is producing in a favourable gold market.
Pantoro shares have more than doubled over the past 12 months, currently trading at $0.185.
Drill results are expected to continue with additional drilling aimed at delineating Mineral Resources and Ore Reserves suitable for underground mining ongoing during the ensuing quarters and undertaken in parallel with open pit mining.