Medallion Metals Ltd (ASX:MM8)’s new high-grade results from Gem Restored deposit are set to enhance a maiden resource estimate and push the company towards its goal of defining a 1-million-ounce gold resource at the Ravensthorpe Gold Project (RGP) in southern WA.
Phase-1 results of up to 1.5 metres at 19.4 g/t gold and 3.4 metres at 8.9 g/t supported by copper and silver results provide the company with confidence and demonstrate the potential to grow the Gem Restored system.
Maiden resource upcoming
Further extensional and infill drilling in a phase-2 program is planned to be carried out this month with a maiden Gem Restored resource estimate well advanced and expected to be reported in October 2021.
Gem Restored is at the northern end of the Kundip Mining Centre (KMC) that hosts the RGP’s current JORC 2012 resource estimate of 674,000 ounces.
Managing director Paul Bennett said: “I am very encouraged to see the extent of the Northern Lode expanded beyond the initial discovery hole.
“There is a significant opportunity to further expand Gem Restored and to identify repetitions of the high-grade plunge zones as the drilling progresses to the north.”
High-grade results
Best results from the completed phase-1 drilling at Gem Restored are:
- 1.5 metres at 19.4 g/t gold, 1.3% copper and 6.5 g/t silver from 225.9 metres, including 0.7 metres at 41.4 g/t gold from 226.2 metres;
- 3.4 metres at 8.9 g/t gold, 1.2% copper and 6.5 g/t silver from 249.7 metres;
- 3.1 metres at 4.5 g/t gold, 0.4% copper and 4.2 g/t silver from 173.4 metres; and
- 0.9 metres at 8.5 g/t gold, 0.1% copper and 7.4 g/t silver from 126 metres.
Visible gold was observed at 226.4 metres within the 0.7-metre interval that graded 41.4 g/t.
Drill core of the hangingwall lode at Gem Restored. Visible gold is observed at 226.4 metres.
These new intersections, which will inform the maiden estimate, confirm the position and extend the strike and plunge extent of the high-grade Northern Lode that remains open at depth and along strike.
Phase-2 drilling
Medallion plans to begin phase-2 extension and infill reverse circulation and diamond drilling this month with planned holes stepping to the north along strike and up-plunge towards historical shallow drilling that intersected encouraging results, including 1-metre at 18.7 g/t.
It has substantially advanced the maiden resource estimate for Gem Restored with database validation and wireframe construction complete.
These elements were developed internally by Medallion and have been forwarded to an independent third party to complete the estimation process. The company expects to report a JORC-compliant MRE for Gem Restored in October 2021.
Towards 1 million ounces
“With the updated resource estimation work well advanced, we are confident that at the conclusion of this round of drilling, Gem Restored will play a major role in helping us achieve our initial aim of defining a 1-million-ounce gold resource at RGP, beyond which, we plan to test the full exploration potential of the project,” Bennett said.
Drilling at KMC is being carried out to extend the depth and strike of the known resources as well as test near mine targets including areas where mineralised trends are interpreted to intersect.
This is part of a 32,000-metre drill program at RGP that is progressing rapidly with around 15,000 metres completed to date and assays reported from the first 10,000 metres.
The company now has three rigs deployed at RGP to conclude the remaining 17,000 metres of the drill program by the end of the year.
Medallion anticipates completing a project-wide mineral resource estimate update by the end of the March quarter of 2022.