Medallion Metals Ltd (ASX:MM8) continues to see further strong results from two key areas at Gem deposit, part of the Kundip Mining Centre (KMC), ahead of a global resource upgrade at Ravensthorpe Gold Project (RGP) in Western Australia.
The new drilling extends and improves confidence in mineralised zones at Gem to the southeast and southwest.
A mineral resource estimate (MRE) update is targeted in April, with around 30,000 metres of new drilling to be incorporated.
Achieving critical mass
Medallion Metals managing director Paul Bennett said: “These are further strong results from the two key areas at Gem that we view as having the greatest upside potential in terms of extending mineralisation.
“The results bolster the imminent resource upgrade and importantly provide confidence to follow up with an aggressive extensional program before the middle of the year.
“Gem represents half of the current resource in terms of ounces.
“Seeing the mineralisation open in multiple directions gives the team confidence Gem can continue to underwrite our growth toward achieving critical mass of 1.5 million ounces and beyond.”
Targeting KMC deposits
The Gem deposit is at the northern end of KMC, which hosts the company’s current JORC 2012 MRE of 674,000 ounces at 2.4 g/t gold.
Drilling resumed at KMC in early January 2022 and the company will continue to target the KMC deposits in the first half of 2022, in conjunction with the regional program, which includes follow-up drilling at Meridian and Ariel.
The 2020 feasibility study demonstrated a substantial pit would optimise at Gem (1,017 metres long, 526 metres wide and 150 metres deep).
The company views potential strike and depth extensions of the deposit as a compelling opportunity to add high margin ounces to the mine plan.
All ongoing drilling in 2022 is targeting areas outside the current MRE, with particular focus on down-plunge extensions to the southwest of Hillsborough and downdip extensions to the south of Two Boys to delineate the high-grade structural controls to mineralisation in these areas.
Southern and easterly extensions
Three diamond holes and one RC hole were completed at the eastern end of the Gem deposit to test the eastern and down-dip extensions of mineralisation.
High-grade intervals include:
- 0.3 metres at 44.9 g/t gold, 0.34% copper and 11.6 g/t silver from 75.45 metres;
- 0.7 metres at 24.06 g/t gold, 1.31% copper and 10.80 g/t silver from 80.32 metres;
- 0.33 metres at 14.6 g/t gold, 1.02% copper and 7.8 g/t silver from 83 metres;
- 0.34 metres at 11 g/t gold, 1.96% copper and 46.7 g/t silver from 111.57 metres;
- 0.44 metres at 34.7 g/t gold, 1.58% copper and 32.7 g/t silver from 113.16 metres;
- 0.45 metres at 27.8 g/t gold, 0.3 % copper and 25.3 g/t silver from 51.85 metres; and
- 0.3 metres at 11.3 g/t gold, 0.30% copper and 1.5 g/t silver from 99.25 metres.
Southwest infill
Mineralisation in all holes drilled principally occurs in two moderately dipping, broad zones of low-level gold anomalism (>0.5 g/t gold) associated with trace to minor, fine-grained disseminated pyrite with moderate chlorite alteration.
High-grade gold and copper, quartz-sulphide (pyrite-chalcopyrite-pyrrhotite) veins have continued to be defined in the infill drilling as evidenced by the following intersections:
- 1-metre at 29.1 g/t gold, 0.44% copper and 7.8 g/t silver from 99 metres; and
- 2 metres at 3.19 g/t gold, 0.82% copper and 3.85 g/t silver from 110 metres.
To the north of Hillsborough, reconnaissance drill holes RC21KP1040 and RC21KP1040 have identified an exploration target with several zones of low-level gold and copper anomalism.
The current interpretation is that the anomalism may represent the upper extremities of a parallel lode system beneath the identified mineralisation.
Exploration program update
Medallion completed around 29,000 metres of RC and diamond drilling at RGP throughout 2021.
Since recommencing drilling in early 2022, a further 12,100 metres of RC and DDH drilling has been completed.
A global MRE update is underway and results are expected to be announced early in the June quarter of 2022, subject to laboratory assay turnaround times.