Prodigy Gold NL (ASX:PRX) has received high-grade results of up to 12 g/t from drilling at the Euro project in the Northern Territory in which Newcrest Mining Limited (ASX:NCM) has a farm-in agreement.
The 12 g/t result was from a 2-metre intersection from 105 metres at the Dune prospect.
Other strong results from the reverse circulation program are 8 metres at 1.9 g/t from 94 metres and 2 metres at 3.0 g/t from 117 metres.
The farm-in permits Newcrest to sole fund up to $12 million in exploration over seven years in order to earn up to 75% interest in the project.
The project area hosts key targets along strike or parallel to the Trans-Tanami Trend, which has seen limited or no previous exploration.
Other gold interests in the region include Newmont Mining Corp’s (NYSE:NEW) Callie mine and Oberon/Titania deposit.
Dune prospect location map in the Trans Tanami Trend.
High quality targets generated
Prodigy Gold managing director Matt Briggs said: “The first two targets drilled on the Euro JV have resulted in broad zones of alteration and encouraging mineralised structures at the Dune prospect.
“Four of the eight holes intersected zones of 3 g/t gold or more - these results are indicative of the style of mineralisation being targeted and warrant follow-up drilling.
“The agreement with Newcrest only commenced six months ago and is already generating high-quality targets as demonstrated by this program.
“Diamond drilling is planned at Dune in the first half of the year along with reconnaissance drilling to test other high priority geochemical and geophysical targets.”
Two targets drilled at Dune
Two targets were drilled in the first bedrock campaign at the Dune prospect where limited previous aircore drilling intersected 3 metres at 0.3 g/t.
At the first target, Anomaly I, gold mineralisation has now been defined over 800 metres of strike where alteration and quartz sulphide veins were intersected within sediments and felsic intrusions.
At Anomaly 2 gold anomalism has been defined over 1,000 metres of strike intersecting quartz sulphide veins within siltstones and felsic intrusions.
Diamond drilling Q1 2019
New diamond drilling is scheduled to begin the first half of 2019 while mapping and collection of historic RAB drill spoils for multi-element geochemistry continue.
The geochemistry data, along with IP geophysics and the recently completed 100-metre spaced airborne magnetics survey data will be consolidated to identify additional targets for reconnaissance drilling in 2019.
- Jessica Cummins