Firefinch Ltd (ASX:FFX)’s first drill hole at the Morila Super Pit has returned 10.5 metres at 30.4 g/t gold from 309.2 metres, indicating that a major mineralised zone has been intersected.
Continuity of high-grade mineralisation outside the current Morila Super Pit resource model demonstrates the potential for underground mining with initial studies already in progress.
The company believes that the results signal a return to the Morila Super Pit's high-grade heyday with one sample requiring follow-up screen fire assay due to being around 100 g/t gold.
Morila the Gorila “far from done”
FFX managing director Dr Michael Anderson said: “We were looking for a repeat of the historical high grades in the Morila Super Pit and it’s taken us just one hole to demonstrate that ‘Morila the Gorilla’ is far from done.
“This is simply an incredible result from our first diamond core drill hole, which confirms not only the continuity of high-grade mineralisation below the previously mined pit, but also the significant potential for underground mining at Morila.
“This first drill hole is just the beginning - we look forward to ramping up our drilling efforts and to providing a steady flow of results from which to update the mineral resource and further optimise the Life of Mine Plan.”
Shares have been as much as 6.3% higher in early trade to A$0.595 while FFX's market cap at pre-open was approximately A$510.3 million.
Background
Drill hole MRD0001 was designed to test for extensions to mineralisation in the north-eastern area of Morila.
Previous intersections included 14 metres at 21.7 g/t gold from 119 metres and 6 metres at 9 g/t from 146 metres, with today’s results confirming the intensity of mineralisation outside the current resource.
Focusing on resource growth
Firefinch’s drill testing of the Morila mineralised system has only just begun and remains open in multiple directions.
The board has approved a comprehensive drilling program that is designed to grow resources and reserves, optimise the initial stages of open-cut mining and test the potential for underground operations.
Additional results will be released once they come to hand. In due course it is expected that there will be further updates to current global resources of 2.43 million ounces of gold and 1.07 million ounces of gold in reserves.