Magmatic Resources Ltd’s (ASX:MAG) shares were trading 27% higher intra-day after intersecting high-grade gold shoots beneath historic workings at its Moorefield project in central New South Wales.
This is the first drill program at the Carlisle Reefs prospect which contains nearly 100 gold workings dating from the 1930’s over an 800 x 800 metres area, including shafts, adits and drives.
Magmatic drilled beneath the surface and underground workings where significant rock chips including >1000 g/t gold have previously indicated the presence of high-grade gold.
A total of 15 reverse circulation holes (2,222 metres) were completed intersecting multiple gold intervals incorporating a number of high-grade gold shoots.
The best down-hole gold intercepts include:
- 8 metres at 5 g/t gold from 74 metres, including 2 metres at 18.05 g/t gold; and
- 30 metres at 1.79 g/t gold from 80 metres; including 16 metres at 2.09 g/t gold.
The currently defined gold mineralisation extends from near surface to 100 metres vertical and is open down dip and along strike to the north and northwest.
These excellent first pass drill results confirm the significance of previously reported high-grade gold rock chips at surface and highlight the potential for more extensive gold mineralisation at depth.
The company is planning to commence follow-up drilling designed to further define gold mineralisation at Carlisle Reefs both along strike and at depth.
Magmatic Resources listed on the ASX in May 2017 after raising $4 million from investors via the issue of shares at $0.20 each.
The company joined the ASX with four exploration projects on Australia’s east coast, which it acquired from South African mining giant Gold Fields Limited (JSE:GFI) last year.
Gold Fields spent over $13.5 million exploring the projects, identifying over 40 prospects and retains a significant shareholding in Magmatic.