MacPhersons Resources Ltd (ASX:MRP) has intersected high-grade gold in its ongoing reverse circulation (RC) drilling at the Boorara Gold Project near Kalgoorlie.
The RC program is part of the company’s resource development at Boorara and is planned to potentially expand the existing gold resource by targeting mineralisation above a vertical depth of 250 metres.
Shares in MacPhersons were up 30% to 9.5 cents intra-day.
High-grade veins displaying visible gold
MacPherson’s managing director Jeffrey Williams said the results supported the evidence of higher grade gold mineralisation outcropping on surface at the eastern contact of the Northern Stockworks deposit.
He said: “We continue to intersect higher grade veins displaying some visible gold in the Northern Stockwork and alteration that is an indication of a larger plumbing system extending north.”
Selected Northern Stockwork assays include: 13 metres at 6.08 g/t gold, including 1 metre at 55.10 g/t and 1 metre at 13.70 g/t; 8 metres at 4.43 g/t, including 1 metre at 26.60 g/t; 4 metres at 6.16 g/t, including 1 metre at 22.50 g/t; and 5 metres at 7.40 g/t, including 1 metre at 33.90 g/t.
Towards definitive feasibility
MacPhersons is undertaking several studies concurrent to RC drilling that will contribute to the definitive feasibility study for Boorara.
Metallurgical test work is being conducted on test samples of oxide, transition and sulphide ores, which so far indicate an overall gold recovery estimate of around 90%.
Geotechnical studies done by an independent consultant have estimated rock strength and open pit wall stability and have resulted in an improvement in overall pit slope angles compared to previous work.
Testing to characterise Boorara ore under semi-autogenous grinding (SAG) milling conditions has also been completed.
MacPhersons is well funded to complete current work programs with $2.5 million cash on hand.
The company has several advanced potential development options for Boorara, which has numerous advantages:
Close location to Kalgoorlie;
Granted mining leases;
Most statutory permitting completed;
Connected mains power;
Established water supply from borefield; and
Proximity to nearby milling operations.