OzAurum Resources Ltd (ASX:OZM) continues to make strides in a diamond drilling program over the Mulgabbie North Gold Project’s newly discovered Demag Zone.
The first diamond drill hole was completed to 242 metres at the WA gold target, and the company is currently waiting on assays while the second drill hole gets underway.
While the final results are still pending, OzAurum knows that the first diamond hole intersected mineralisation that closely correlates with the gold it found in nearby reverse circulation (RC) drill holes.
What’s more, the hole intersected a thick sequence of Mulgabbie North gold host from more than 150 metres downhole.
Validating gold discovery potential
Speaking to the findings, OzAurum managing director and CEO Andrew Pumphrey said: “The Mulgabbie North Gold Project is shaping up to be a significant gold discovery situated right alongside the Northern Star Carosue Dam Mill.
“The first diamond drill hole completed at the new discovery Demag Zone has intersected mineralisation that closely correlates with adjacent RC holes MNORC 176 and 177, further validating the potential of Mulgabbie to be a significant gold discovery.
“We look forward to providing shareholders with further drilling updates at this exciting new discovery.”
Program underway
OzAurum’s diamond drilling program is designed to target extensions to the gold mineralisation associated with two RC holes.
When these targets were drilled, they intersected 56 metres at 1.31 g/t gold from 68 metres, including 18 metres at 2.07 g/t and 26 metres at 1.79 g/t from 136 metres, including 8 metres at 4.78 g/t.
Overall, the explorer believes the diamond core will provide valuable information on lithology, mineralisation, alteration and structure associated with the gold mineralisation at the Demag Zone.
OzAurum only needs to pay operating costs to wield the diamond drill rig: company chief Andrew Pumphrey owns and operates the equipment and has supplied it at no cost to the explorer.
A structural geology consultant will undertake structural analysis and interpretation on diamond core from both Mulgabbie North Demag Zone and the nearby Patricia target from May 23.
What else is on the cards?
There’s more than diamond drilling on the horizon for the OZM team.
OzAurum says follow up RC drilling at the Mulgabbie North Demag Zone is a high priority, along with ongoing RC drill testing along the aircore saprolite gold anomalies and extensions to the nearby Ben and James prospects.
As a result, an RC rig is expected to hit the site in three weeks’ time to begin RC drilling at the Demag Zone.
Down the line, it’s hoped that drilling, sampling and assaying will lead to a JORC 2012-compliant resource for the Mulgabbie North gold target.
OzAurum has vowed to provide regular market updates as it takes a closer look at this growing gold discovery.