OzAurum Resources Ltd (ASX:OZM) has skyrocketed on uncovering a whopping 56-metre gold intersection grading 1.31 g/t and establishing a new gold discovery at the Mulgabbie North Project in Western Australia.
The explorer recently kickstarted a 7,500-metre reverse circulation (RC) campaign at the gold camp, following on from a large-scale, 74,000-metre RC and aircore drill campaign in 2021.
Promisingly, RC drilling to date has pinpointed what OzAurum describes as significant, wide zones of gold mineralisation, especially at the Mulgabbie North Demag Zone, where the discovery was made.
Gold mineralisation across the property remains open along strike and at depth.
Reflecting the strong news, investors drove the company's shares up by as much as 150% to $0.25, approaching the record high of $0.265, with around 29 million changing hands.
“Virgin gold discovery”
Commenting on the findings, OzAurum CEO and managing director Andrew Pumphrey said: “The new virgin gold discovery at the Mulgabbie North Demag Zone has intersected significant gold mineralisation in a number of RC drill holes.
“These excellent results further validate the potential of the Mulgabbie North Gold Project to be a significant gold discovery, situated right alongside the Northern Star Ltd's Carosue Dam Mill.”
The results are in
OzAurum has fielded results for 11 RC holes, covering 1,630 metres, from its latest exploration program at Mulgabbie North.
These holes were designed to test supergene and end-of-hole aircore gold results from a previous campaign across the project’s Demag Zone.
Only limited historical drilling covered the area before now, where drilling took place over three 100-metre spaced drill lines.
Three of the holes reported substantial primary gold hits, and highlights include:
- 56 metres at 1.31 g/t gold from 68 metres, including 18 metres at 2.07 g/t;
- 26 metres at 1.79 g/t from 136 metres, including 8 metres at 4.78 g/t;
- 28 metres at 1.00 g/t from 72 metres, including 4 metres at 2.32 g/t;
- 11 metres at 1.90 g/t from 49 metres, including 1 metre at 12.15 g/t; and
- 11 metres at 1.13 g/t from 103 metres, including 5 metres at 2.06 g/t.
Notably, the standout 56-metre gold hit was associated with pyrite and arsenopyrite mineralisation and quartz veining.
Current RC drilling at Mulgabbie North has defined primary gold mineralisation over more than 1.3 kilometres of strike, and OzAurum is confident that extensional RC drilling will further extend this strike.
It also expects future RC drilling will continue to identify new primary gold mineralisation linked to the project’s numerous geochemical gold anomalies, as well as the aircore gold targets.
Ultimately, the RC results, combined with the previous aircore findings, have defined new zones of mineralisation along 2.8 strike kilometres.
On the calendar
Follow-up RC and diamond drilling at Mulgabbie North Demag Zone is a high priority for OzAurum, along with ongoing RC drill testing at the Ben and James prospects.
Down the line, the explorer hopes its efforts will lead to a JORC-compliant gold resource.
OzAurum has promised to provide regular market and report on drilling results as they hit the desk.