Medallion Metals Ltd (ASX:MM8) has returned “exceptionally” high-grade assays, including 3.3 metres at 66 g/t gold and 0.7% copper at Gem, from extensional diamond drilling targeting down dip extensions to the Beryl lodes of the Kundip Mining Centre (KMC) in WA.
The Beryl lodes are near the centre of the Gem deposit in the northern part of the KMC, which is host to a JORC 2012 mineral resource estimate (MRE) of 674,000 ounces at 2.4 g/t gold.
These new assays confirm the company’s anticipated high grades from visible gold observed in one of the drill holes: 3.29 metres at 65.62 g/t gold, 0.68% copper ands 11.69 g/t silver from 99.43 metres including 1.94 metres at 110.26 g/t gold, 1.09% copper and 18.56 g/t silver from 100.78 metres.
Beryl underground workings
The company has also received high-grade underground face sample results from Beryl underground workings, including 0.7 metres at 6 g/t gold and 19.5% copper and 0.9 metres at 49 g/t gold and 20.0% copper.
These new high-grade gold and copper results accord with the mineralisation style, grade tenor and orientation of the Beryl lodes.
Medallion continues to target down dip extensions of the Beryl underground workings, which host some of the highest gold and copper grades found at the KMC.
Down-dip extensions remain open at depth.
Medallion expects to release its updated mineral resource estimate in the next two to four weeks.
Positive visual results
Managing director Paul Bennett said: “It’s extremely encouraging to have positive visual results confirmed by the lab.
“Taken with the historical data from the Beryl workings [this] is evidence of the high grade and high value of these discrete sulphide lodes that are repetitive throughout the Kundip system.
“This also looks like a new structure opening up in the hanging wall of Beryl which is open down plunge, Kundip continues to throw up new opportunities close to surface.
“As we have seen throughout the entire drill program, drill more and you find more metal at Kundip.”
The results have prompted a positive response from investors with MM8's securities up by 8.16% to $0.265.
17,000-metre campaign almost complete
Medallion has completed roughly 16,000 metres of the 17,000-metre combined reverse circulation (RC) and diamond drill program that was planned for the first half of 2022.
RC drilling wrapped in April, and a single diamond drill rig remains at site to conclude the final 1,000 metres of diamond drilling this month.
Geological surveying has concluded at KMC, Ariel, Old Gregg and Meridian, with results anticipated later this month.
A ground-based electromagnetic (EM) survey was also conducted on a historical airborne EM target 350 metres northwest of Meridian.
Mineral resource estimate expected soon
At the end of April, Medallion had dispatched 18,386 samples to the laboratory for assay, and received 15,562 sample assay results back. Outstanding samples represent approximately 15,845 metres of drilling, with an average turnaround of 44 days this year.
The company expects results to continue to flow regularly over the coming months.
The MRE update is expected to be released this month and will comprise of a maiden estimate of Gem Restored in addition to updates at Gem, Harbour View and Flag. The update will include estimates for gold, copper and silver.
About the historical workings at Beryl
Back in 1934, Beryl Gold Mines Ltd conducted a 12-hole diamond program across the length of the Gem deposit targeting the east-west shallow south-dipping Gem, Two Boys and Hillsborough lodes.
Several high-grade intersections led to a shaft being sunk in 1938. Mining occurred intermittently until 1989 when Norseman Gold Mines NL ceased operations.
Total production recorded from the Beryl shaft was 10,476 tonnes at 11.85 g/t gold for 3,991 ounces of contained gold.