Moho Resources Ltd (ASX:MOH) has begun an extensive four-stage drill program in its third drilling program at East Sampson Dam gold prospect, part of the company’s Silver Swan North Project in Western Australia.
Phase one of the program is underway and involves 15 reverse circulation (RC) holes for around 1,400 metres of drilling.
The objective is resource definition infill drilling to extend gold mineralisation intersected by Moho in September 2018 and October 2019 RC drill programs, including:
- 15 metres at 4.71 g/t from 88 metres, including 3 metres at 15.18 g/t from 100 metres;
- 5 metres at 10.36 g/t from 59 metres, including 2 metres at 24.61 g/t from 56 metres;
- 9 metres at 4.28 g/t from 19 metres, including 3 metres at 3.37 g/t from 19 metres, and 1 metre at 24.3 g/t from 25 metres;
- 11 metres at 3.11 g/t from 65 metres, including 1 metre at 17.7 g/t from 72 metres;
- 2 metres at 17 g/t from 73 metres; and
- 2 metres at 12.33 g/t from 88 metres, including 1 metre at 22.8 g/t at 89 metres.
Next steps
Assay results for phase one are expected in August 2020.
Phase two of the drill program includes 25 RC holes for about 2,100 metres and is expected to start later this quarter.
Diamond drilling of six holes for around 600 metres for structural, geotechnical and metallurgical studies will also begin in the current quarter.
Preliminary metallurgical test-work results are also expected around the same time.
In quarter four, infill auger sampling of existing gold anomalies will begin, as well as aircore drilling of auger gold anomalies and geophysical targets.
The company expects to release a maiden JORC 2012 mineral resource during quarter four, followed by a scoping study in the first quarter of 2021.
Proposed location of Phase 1 2020 RC drill program collars in relation to current mineralised zone and gold intersections in RC drill program undertaken by Moho in October 2019.
Potential cashflow
The prospect is a key element of the company’s Silver Swan North Project which is well located close to existing gold processing facilities and mining infrastructure.
Moho believes that, if mineralisation is extended and a suitable gold resource established, it could provide an important cash flow for the company.
On June 24, 2020, Moho announced it had signed a binding heads of agreement with joint venture partner Odin Metals Ltd (ASX:ODM) to acquire ODM’s 30% interest in the East Sampson Dam prospect, subject to shareholder approval.