OzAurum Resources Ltd (ASX:OZM) has drilled its second diamond hole to 335 metres at its newest gold discovery: the Demag Zone at Mulgabbie Gold Project in WA.
The diamond drill results will be shipped off for assay once core processing is complete, but OzAurum already knows the hole intersected the right rocks - arsenopyrite and pyrite mineralisation with zones of silica flooding.
This geology is very similar to the gold mineralisation OzAurum intersected in a nearby reverse circulation drill hole, executed 20 metres east of the latest diamond hole.
Ultimately, the explorer believes its diamond core will provide valuable information on lithology, mineralisation, alteration and structure associated with the gold mineralisation at the Demag Zone.
In the meantime, high priority reverse circulation drilling will kick off at the gold discovery in a week.
Validating Mulgabbie’s gold potential
Speaking to the development, OzAurum CEO and managing director Andrew Pumphrey said: “Exploration continues to demonstrate the potential for Mulgabbie North to deliver a significant gold discovery situated right alongside the Northern Star Carosue Dam Mill.
“The second diamond drill hole, completed at the Demag Zone, has intersected mineralisation that closely correlates with adjacent RC hole MNORC 177, further validating the potential of Mulgabbie.
“We look forward to providing shareholders with further drilling updates at this exciting new discovery.”
Diamond drilling at Demag
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.
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 kicked off structural analysis and interpretation on diamond core from both Mulgabbie North Demag Zone and the nearby Patricia target yesterday, which is hoped to give OZM a closer look at both target’s geology.
Next on the agenda
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.
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.