Medallion Metals Ltd (ASX:MM8) is trading higher on encountering visual quartz-sulphide mineralisation during step-out drilling at the Harbour View deposit at Kundip Mining Centre (KMC), up to 180 metres from the closest previous drilling.
The company says these new intersections are characteristic of KMC-style quartz-pyrite-chalcopyrite veins and indicate an extension of known mineralisation, with the nearest previously reported holes assaying:
- 2.38 metres at 4.26 g/t gold, 7.19% copper and 37.35 g/t silver from 231.22 metres; and
- 1.75 metres at 4.08 g/t gold, 17.94% copper and 40.4 g/t silver from 173.0 metres
Medallion believes these results validate the KMC’s structural geological model and demonstrate the system is expansive and capable of delivering material resource growth.
“Evidence of significant extensions”
“These outstanding visual results are evidence of significant extensions of the Harbour View and May structures and provide further confidence in the structural and geological continuity of mineralisation,” Medallion Metals managing director Paul Bennett said.
“Our project team is developing an excellent handle on what is controlling this system and these results demonstrate our ability to materially extend mineralisation quickly and efficiently.
“Subject to assay results, shareholders should expect to see further resource growth in this area.”
Shares higher
Investors share the enthusiasm, sending shares as much as 12.5% higher this morning to $0.315. MM8 securities have risen from $0.235 at the market close on May 24.
Visually apparent massive sulphides were also recorded in a 14-metre shear zone interpreted to be an extension of the Gem deposit, discovered in drilling targeting a down-hole electromagnetic (DHEM) conductor at Harbour View North.
Assays are still pending for about 13,000 metres of KMC drilling samples, with an updated mineral resource estimate expected to be released in mid-June 2022.
KMC progress
Medallion has completed more than 46,000 metres of combined RC and DDH drilling at the greater Ravensthorpe Gold Project since listing on the ASX in March 2021.
Of that, 40,696 metres were carried out at KMC with 23,138 metres of RC and 17,558 metres of diamond drilling. The remainder was completed at the company’s highly prospective regional targets.
Of the 211 holes drilled at KMC, results have now been reported for 156, representing 27,652 metres of the drilling completed. Results from the remaining 13,044 metres of drilling will be reported over coming weeks.