Intermin Resources Limited’s (ASX:IRC) initial resource estimate of 78,000 ounces of gold for the Anthill deposit in Western Australia provides a base from which to grow the project.
Of the 1.42 million tonne resource at a grade of 1.72 g/t gold, 75% is in the indicated category.
The Anthill resource takes Intermin’s overall resource in the Eastern Goldfields region to 6.36 million tonnes at 2.12 g/t for 434,000 ounces.
READ: Intermin Resources begins major drill program in the Western Australian goldfields
Jon Price, managing director, said: “The successful drilling at Anthill in 2017 has confirmed the company’s geological interpretation.
“The initial mineral resource is an excellent base on which to grow the project.
“Intermin takes a very conservative and economic approach to resource estimation and typically applies higher cut-off grades as we commence initial development studies.”
Shares reached a 12-month high of 25 cents in late February and have traded in the range of 21 to 23.5 cents today.
READ: Intermin Resources achieves record ore mining at Teal Gold Mine
In the June and September quarters of 2017, Intermin completed 45 reverse circulation holes for 6,282 metres to depths between 75 and 230 metres and one diamond hole to 226 metres.
The best result was 105 metres at 1.38 g/t gold from 48 metres, including 41 metres at 2.35 g/t from 73 metres.
Further drilling planned
A further resource drilling program of 7,000 metres is planned at Anthill to test extensions along strike and at depth outside the resource envelope.
New regional discovery drilling of about 7,000 metres is also planned to test new targets at Fire Ant and to the north, east and west of the Anthill resource.
Intermin Resources' assets are in the prolific Eastern Goldfields.
Price said: “We now look forward to the upcoming extensional and new discovery drill program planned for the June quarter.
“We believe Anthill and new targets identified within the project area have the potential to be a significant part of our future production pipeline.”
Another resource update in third quarter
Results from drilling proposed for the June quarter will be added to the geological database for resource model compilation.
A further resource update is expected in the September quarter.
In addition, initial in-house scoping studies will begin shortly to assess optimal mining and processing pathways for an open cut mine development.
READ: Intermin Resources pegs new tenements in the Western Australian goldfields
The company recently pegged a new tenure, the Lakewood Gold Project, 8 kilometres southeast of Kalgoorlie Boulder.
Lakewood comprises 115 square kilometres on the greenstone belt south of Kalgoorlie-Boulder’s Golden Mile and adjacent to the Lakewood toll milling facility.