Medallion Metals Ltd (ASX:MM8)’s high-grade intersections at the Kaolin deposit, part of the Kundip Mining Centre (KMC) within the wider 640,000-ounce Ravensthorpe Gold Project, has extended the large gold system where mineralisation remains open along 900 metres of strike.
Step-out drilling to the west and down-dip has also continued to demonstrate the significant scale of the shallow gold mineralisation across the Kaolin deposit.
The company believes that these new results have had a positive impact on the Ravensthorpe Gold Project's mineral resource estimate, with new intersections including:
- 3.3 metres at 10.1 g/t gold, 3.08% copper, 38.6 g/t silver from 54 metres, including 1.2 metres at 19.5 g/t, 4.57%, and 40.6 g/t from 54 metres;
- 12 metres at 3.4 g/t, 0.23%, and 1.5 g/t from 78 metres, including 2 metres at 10.4 g/t, 1%, and 5.1 g/t from 83 metres;
- 1 metre at 23 g/t, 0.03%, and 3 g/t from 133 metres; and
- 5 metres at 3.5 g/t, 0.18% and 1.3 g/t from 115 metres.
Isometric view of the Kaolin deposit's location within the Kundip Mining Centre
Big boost in aim to surpass one million resource ounces
MM8 managing director Paul Bennett said: “After the success at Gem Restored, it's extremely encouraging to see the step out program at Kaolin yield these results.
“Kaolin is the foundation of the current mine plan, contributing 54% of feed ounces to the feasibility study, all from open pit at a low strip ratio.
“This drilling demonstrates the pit will almost certainly extend to the west and at depth along its entire length.
“As the structures remain open there is also the potential for underground mining to extend off the base of the pit.
“With plenty of drilling still to come from Kaolin it’s going to provide a big boost to our aim of surpassing one million resource ounces.”
Reverse circulation and diamond drilling
The current program at Kaolin totals more than 5,000 metres of reverse circulation (RC) and 2,300 metres of diamond drilling.
Assays are pending on three diamond holes with four planned drill holes (two RC and two diamond) to be completed when weather conditions improve.
Mineralisation has been demonstrated by drilling to be open to at least 200 metres below surface along the entire 900-metre strike of the Kaolin lodes with the results improving confidence within the known resources by increasing data density at the periphery of the current Kaolin MRE.
Hillsborough and Two Boys
Hillsborough is a gold-copper-sulphide zone at the western end of the Kaolin deposit which is characterised by en-echelon pyrite-chalcopyrite-quartz lodes dipping to the south at 60° and plunging to the southwest.
Recent RC and diamond drilling has both infilled the inferred resource and extended the mineralisation around 70 metres to the west outside the current resource limits.
Around five RC holes were drilled south of the Two Boys open pit to extend and infill mineralisation down-dip to the south and investigate the potential southeast continuation of the structure.
Drilling to the southeast also tested a conceptual extension of the Kaolin structure which has been interrupted by an intrusive northeast striking dolerite dyke. Mineralisation was intersected in most drill holes beyond the intrusion including 1 metre at 23 g/t gold within drillhole RC21KP973.
Follow-up diamond drilling has commenced in this area to further infill and extend mineralisation, confirm the structural orientations of the lodes, and determine the significance of the lodes delineated south of the dolerite dyke.
Looking ahead
Medallion’s 32,000 drill program at Kundip Mining Centre (KMC) is progressing rapidly, with 12,304 metres of RC & diamond drilling now completed.
Upon completion of the bulk of Gem Restored and Kaolin phase 1 drill programs, the focus has now shifted to the following areas:
- Harbour View Deposit: resource extensions down dip and along strike to the northeast;
- New positions: exploration between the previously undrilled area between the Kaolin and Harbour View structural trends; and
- Regional targets: Old Gregg and Meridian targets.
A significant quantity of samples is with the laboratory and are now being reported on a regular basis.
Sample submissions have been made regularly throughout the drill program and the company expects results will continue to flow on a consistent basis.
In addition to ongoing drilling, Medallion has commenced work on a maiden resource estimate for the Gem Restored deposit, which it expects to complete by the end of next month.
The company anticipates completing a project-wide mineral resource update by the end of next year's March quarter.