Meeka Gold Ltd (ASX:MEK) is back at the Murchison Gold Project, targeting shallow, high-grade gold mineralisation at St Anne’s, which is not yet included in a mineral resource estimate.
“We are returning to the Murchison to drill out a number of advanced high priority targets that sit outside the mineral resource,” said managing director Tim Davidson.
“Existing drilling demonstrates these high confidence targets have good geological and grade continuity. We are targeting extensions at both strike and depth and aim to bring them into the next mineral resource update.”
Drilling targeting St Anne’s and Turnberry
The drill program will target strike extensions to shallow, high-grade gold at St Anne’s, including:
- 24 metres at 4.81 g/t gold from 68 metres including 4 metres at 20.30 g/t;
- 36 metres at 1.02 g/t from 24 metres including 8 metres at 2.35 g/t;
- 8 metres at 2.66 g/t from 104 metres including 1-metre at 16.45 g/t; and
- 20 metres at 1.01 g/t from 40 metres.
Drilling will also be directed at the western flank of the Turnberry 610,000-ounce mineral resource, where significant intersections outside the resource include:
- 16 metres at 6.67 g/t gold from 20 metres including 4 metres at 24.10 g/t;
- 29 metres at 1.95 g/t from 32 metres including 6 metres at 4.06 g/t;
- 21 metres at 2.28 g/t from 100 metres including 4 metres at 5.14 g/t; and
- 11 metres at 1.25 g/t from 66 metres.
First results from this drilling are expected in early July 2022 and will be released on an ongoing basis.
Pre-feasibility study
“The team is also advancing the PFS [pre-feasibility study] as anticipated, which will be finalised in the September 2022 quarter,” Davidson said.
“Shallow oxide mineralisation added to the mineral resource through this drilling will further enhance the robust outcomes of our December 2021 scoping study and will be included in the PFS as appropriate.”
The PFS will build on the solid foundation laid in the December 2021 scoping study and include:
- Pre-tax undiscounted free cash flow of $182 million at a gold price of A$2,400 an ounce;
- Project delivery at an NPV5% of $124 million and IRR of 46%;
- EBITDA of $457 million;
- Average gold production of around 50,000 ounces per annum;
- 422,000 ounces of gold sold at AISC of $1,655 per ounce; and
- An eight-year life of mine.