Stavely Minerals (ASX:SVY) has intersected a significant wide zone of strong gold mineralisation in a recently completed diamond drill hole at its Stavely Project in western Victoria.
The company’s shares were last trading 22.73% higher intra-day, at $0.135.
The drilling was completed at the Fairview North gold prospect, part of the Stavely Project.
Stavely’s drill hole intersected a new interpreted orientation of shallowly northwest dipping mineralised vein arrays at Fairview North.
The drilling intercepted 30 metres at 1.4 g/t gold from 47 metres depth, including 11 metres at 2.4 g/t gold.
Previous explorers have tested the Fairview North gold prospect with a large number of aircore drill holes, eleven reverse circulation drill holes and two diamond drill holes.
Strong near-surface gold grades up to 1 metre at 28 g/t gold were achieved but had proven inconsistent along section and between sections.
The previous high-grade gold intercepts include:
- 2 metres at 16.1 g/t gold;
- 6 metres at 6.1 g/t gold; and
- 6 metres at 4.6 g/t gold.
Stavely is planning to drill a number of additional reverse circulation drill holes, specifically targeting the revised geometry of the gold mineralised veins.
Gold prices recently increased to US$1296.5 per ounce, the highest level since November 2016, as North Korea tensions kept riskier assets on the edge.