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Spectrum Metals discovers new high-grade gold zone at Penny West project in WA

Last updated: 06:10 05 Mar 2019 GMT, First published: 05:34 05 Mar 2019 GMT

Drilling at Penny West
Drilling is continuing at Penny West with samples to arrive at the laboratory next week

Spectrum Metals Ltd (ASX:SPX) has discovered a new high-grade zone of gold mineralisation at the Penny West Gold Project in WA, returning an intersection of 14 metres at 14.4 g/t gold in the first hole.

The discovery hole was designed to follow up an isolated intersection of 1-metre at 6.47 g/t from 92 metres in a previous hole north of the historical pit.

The high-grade portion of the intersection, from 128 metres, has the same characteristics seen in the Penny West lode mined within the open pit to the south, inferring that it is part of the same mineralising event.

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Reverse circulation drilling chip tray for the high-grade portion of the intersection from 128 metres

“Exceeded expectations in terms of tenor and width”

Spectrum managing director Paul Adams said: “This intersection in the first hole submitted for analysis in our maiden program at Penny West has exceeded our highest expectations at this location, both in terms of tenor and width.

“The fact that the mineralisation style and grade is essentially the same as was mined previously gives us confidence that the newly discovered zone is contemporaneous with the original high-grade mineralisation that made Penny West such a famous name in WA mining history.”

READ: Spectrum Metals prepares to drill high-priority targets at Penny West Gold Project

The company is planning to expand the current drilling program to follow-up this discovery.

Two additional holes have been planned down dip and to the north of this intersection with the aim of triangulating the orientation of the mineralised structure.

The information will be used to design a more comprehensive drilling program aimed at expanding the mineralisation in all directions, with a view to defining a mineral resource estimate as soon as possible.

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