Aeris Resources Ltd (ASX:AIS) shares are up after an encouraging increase in gold resources at the Cracow Gold Operations in Queensland and further strong results from the Constellation deposit of the Tritton Copper Project in New South Wales.
The company has increased the mineral resource for the combined Klondyke and Royal deposits at Cracow by 324% with shares up as much as 14% to 12.5 cents.
An updated mineral resource estimate has been prepared to outline 341,000 tonnes at 3.6 g/t gold for 39,500 ounces.
The material change is the result of a revision of the geological information and additional gold mineralisation identified in the June 2020 drilling program.
Further resource definition drilling is scheduled in May/June.
“Scheduling deposits into Cracow LOM”
Historically the operating philosophy at Cracow was to focus on maximising near-term margin by using a high gold cut-off grade, however, the company was confident that the operation had strong potential to identify additional gold mineralisation that could be mined in and around current and historical workings.
The re-interpretation of the geological information around the Klondyke and Royal deposits has proven the validity of this thesis.
Aeris executive chairman Andre Labuschagne said: “We have always been confident that there is more gold to be found at Cracow, either from exploration activities, including drilling, or by challenging the paradigms around what is economically mineable.
“The significant increase in the mineral resource at the Klondyke and Royal deposits confirms our view.
“Work has commenced to schedule the upgraded Klondyke-Royal deposits into the Cracow life of mine plan.”
Klondyke-Royal long-section view showing gold intersections from the June 2020 drill program.
Klondyke and Royal results
The June 2020 surface RC drill program completed 23 shallow holes with assay results from the drill program including:
- 7 metres at 11.6 g/t gold (true thickness 3.3 metres);
- 3 metres at 3.1 g/t (true thickness 1.7 metres);
- 4 metres at 2.9 g/t (true thickness 1.4 metres); and
- 6 metres at 2.5 g/t (true thickness 2.8 metres).
Constellation deposit expanded
The company’s ongoing exploration at Constellation deposit, within the 100%-owned Tritton tenement package in NSW and near the Tritton operations, continues to provide encouragement.
Fourteen drill holes have been completed at Constellation and copper sulphide mineralisation has been traced a further 250 metres down plunge (500 metres in total) with assay results including:
- 24.6 metres at 1.45% copper, 0.49 g/t gold and 3 g/t silver from 297 metres, including 13.26 metres at 2% copper, 0.70 g/t gold and 3.9 g/t silver from 299.87 metres, and 2.6 metres at 2.19% copper, 0.62 g/t gold and 5.5 g/t silver from 319 metres;
- 0.7 metres at 2.58% copper, 0.61 g/t gold and 6.9 g/t silver from 150 metres; and
- 25 metres at 0.66% copper, 0.71 g/t gold, 1.1 g/t silver from 211 metres including 7 metres at 1.43% copper, 1.77 g/t gold, 2.4 g/t silver from 221 metres.
Notably, drill holes TAKD012 and TAKD014 tested the down plunge extents to the mineralised system associated with the larger moving loop electromagnetic (MLTEM) plate, with both intersecting the sulphide horizon (assays pending) while hole TAKD013 intersected the target depth outside (to the north) of the mineralised envelope.
“The Constellation deposit is evolving”
Labuschagne said: “We are very pleased with how the Constellation deposit is evolving.
“The high-grade core has now been extended over 500 metres down plunge and remains open along strike to the south.”
“Whilst the rain in late March stopped drilling for a few weeks we now have three rigs drilling with the focus being on continuing to test the down plunge extents whilst also getting a better understanding of what is happening around the two bedrock conductors identified near-surface and where drill hole TAKD002 intersected 3.55 metres at 22.56% copper, 2.57 g/t gold, 16.1 g/t silver.”
Plan view showing location of drill holes completed at the Constellation deposit and the interpreted extents of the known mineralised system.
Accelerating drilling
Drilling was suspended for several weeks in late March through to early April following a significant rain event in the region but activities have now recommenced with three drill rigs on-site to accelerate drilling.
A second drill rig will support the current diamond drill program testing the extents to the deeper and larger MLTEM plate and an RC drill rig will focus on testing the shallow sulphide mineralisation intersected from TAKD002 (3.55 metres at 22.56% copper).
The company has also received approval for an additional 25 diamond drill holes and 60 RC holes – in addition to the original six diamond drill holes.