Miramar Resources Limited (ASX:M2R) is trading higher after beginning its first drilling campaign since listing on the ASX - a maiden aircore program at its Gidji Joint Venture Project, 15 kilometres north of Kalgoorlie.
The initial focus will be on testing the potential for extensions to the 314,000-ounce Runway gold deposit immediately south of the project’s southern tenement boundary.
Investors have welcomed the news with securities as much as 15% higher to 34.5 cents intra-day.
Miramar purchased an 80% interest in the Gidji project as part of its recent initial public offer (IPO).
"On way to first development opportunity"
Miramar executive chairman Allan Kelly said the company was excited to start its first drill program on what was one of the highlights of the recent IPO prospectus.
He said: “We believe the Runway deposit only stops at our tenement boundary due to a lack of effective drilling.
“The strike length of the existing Runway deposit is only about 400 metres and we currently have a similar gap between the tenement boundary and the first line of effective drilling on our ground.
“If we can replicate what KCGM discovered at Runway, we could be well on our way to our first development opportunity.”
Test potential for oxide mineralisation
According to historic Kalgoorlie Consolidated Gold Mines Pty Ltd (KCGM) reports, the Runway deposit includes a higher grade oxide component above the deeper primary mineralisation.
Most historic drilling within Miramar’s tenements has been too shallow to intersect this oxide mineralisation, which apparently starts at around 55 metres below surface.
The initial aircore drilling program aims to test the potential for the oxide mineralisation to continue onto Miramar’s tenements, and, by inference, the potential existence of deeper primary mineralisation.
The initial program, which is expected to take between two to three weeks to complete, will be followed up with further aircore along with deeper reverse circulation/diamond drilling.
WA-focused mineral exploration company
Miramar Resources is a new Western Australian-focused mineral exploration company with highly prospective gold exploration projects in the Eastern Goldfields, Murchison and Gascoyne regions of Western Australia.
Miramar’s board has a track record of successful discovery, development and production within Australia, Africa, and North America.
The company aims to create shareholder value through acquisition, exploration and monetisation of high-quality mineral assets.