Medallion Metals Ltd (ASX:MM8) has intersected high-grade gold mineralisation at Ariel Prospect, about two kilometres north of the Kundip Mining Centre which already hosts the company’s current JORC 2012 mineral resource estimate (MRE) of 674,000 ounces at 2.4 g/t gold.
The drilling at Ariel has demonstrated the presence of an 800 metres mineralised zone that remains open in all directions within the total geochemical and VTEM anomalism extending over 1.4 kilometres in strike.
The highly prospective Ariel and Ard Patrick prospects continue to demonstrate the strong district-scale potential of the Ravensthorpe Gold Project.
Limited drilling has been conducted historically at Ariel and Ard Patrick, and step-out drilling is planned in the first quarter of 2022.
Investors have responded positively, driving shares up by 10.53% to A$0.21 at midday.
Potential to add significant ounces
Medallion Metals managing director Paul Bennett said: “This is another extremely positive outcome for Medallion.
“Ariel is the second regional prospect to be tested after Meridian and has yielded another discovery and is a distinct target area that has the potential to add significant ounces to the project resource.
“Being located only two kilometres along strike from the Kundip Mining Centre significantly increases the potential for the area to support a standalone development.
“Just like the Meridian results, Ariel underlines the potential of Medallion’s dominant landholding in the Annabelle volcanics, which hosts numerous similar prospects that have yet to be adequately tested."
Ramping up exploration
He said: “We are ramping up exploration efforts to significantly grow the resource, needless to say, that we will have drilled circa 32,000 metres after the last resource update so we envisage a substantial increase to the resource inventory when we report in Q1 next year.”
Results
The wide-spaced reverse circulation (RC) drilling was part of Medallion’s 32,000 metres drill program at the Ravensthorpe Gold Project in 2021.
The drill program consists of 6 holes for 740 metres targeting gold anomalism defined by surface geochemical and geophysical surveys and aircore drilling completed in 2018.
Only six holes were drilled returning shallow high-grade gold intersections including:
➢ 26 metres at 1.6 g/t gold from 0 metres;
➢ 1-metre at 5.15 g/t from 6 metres;
➢ 1-metre at 7.52 g/t from 11 metres;
➢ 4 metres at 1.24 g/t from 16 metres; and
➢ 3 metres at 2.92 g/t gold and 1,230 ppm copper from 47 metres.
Next steps
The company is undertaking a review of the results at Ariel with downhole electro-magnetic surveys (DHEM) and additional Phase 1 RC drilling scheduled in the first quarter of 2022.
The design of Phase 2 drilling has commenced, which will include additional aircore drilling to test the VTEM conductor along strike to the northwest of current drilling.
Drill program update
Medallion’s initial 32,000 metres drill program is nearing completion with about 28,000 metres of RC and diamond drill hole drilling completed.
It has a single RC rig deployed at Ravensthorpe Project to conclude the remaining 4,000 metres of RC drilling.
A single 300 metres diamond drill hole will be drilled at the Old Gregg prospect prior to year-end.
The company expects to stand down all drilling activity at Ravensthorpe Project in late 2021, returning to commence the 2022 drill campaign in early January 2022.