OzAurum Resources Ltd (ASX:OZM) has further validated the potential of the Demag Zone at Mulgabbie North to be a significant gold discovery in the Eastern Goldfields of Western Australia.
The company’s first completed diamond hole at the new virgin gold discovery, MNODH 002, delivered strong results with a best intersection of 55 metres at 1.00 g/t gold from 47 metres, including 4 metres at 4.98 g/t with 1-metre at 15.55 g/t.
This hole intersected gold mineralisation that closely correlates with adjacent reverse circulation hole MNORC 177 that returned 56 metres at 1.31 g/t gold from 68 metres, including 18 metres at 2.07 g/t.
OZM is now working on a third diamond drill hole, MNODH 004, at the Demag Zone which is at a depth of 160 metres with a planned depth of 400 metres.
“We are excited to report on the significant drilling progress at our Mulgabbie North Gold Project,” CEO and managing director Andrew Pumphrey said.
“In particular, the first completed diamond hole drilled at our new virgin gold discovery Demag Zone has intersected significant gold mineralisation that closely correlates with adjacent RC hole MNORC 177, further validating the potential of Mulgabbie to be a significant gold discovery, directly adjacent to Northern Star’s Carosue Dam Mine.”
More about the drilling
Significant wide downhole intervals of silicification with pyrite and arsenopyrite mineralisation have been intersected in both RC and diamond drilling at the Demag Zone.
OZM also confirmed the host conglomerate unit has a true thickness of about 120 metres.
The second diamond drill hole MNODH 003 at the Demag Zone, on the 8400N section, was planned to target gold mineralisation at a depth previously intersected by RC drill hole MNORC 177.
Diamond hole MNODH 003, which was drilled to a depth of 335 metres, intersected zones of arsenopyrite and pyrite mineralisation with silica flooding that correlates well with mineralisation seen in RC hole MNORC 177.
Recent logging of both MNODH 002 and 003 revealed several mineralising episodes of arsenopyrite and pyrite mineralisation, as well as quartz veining.
OZM is now drilling MNODH 004.
Importantly this is a low-cost operation, with the drill rig being owned by Pumphrey and operated by OZM at no cost to the company.
Diamond core will provide valuable information on lithology, mineralisation, alteration and structure associated with the gold mineralisation at the Demag Zone.
Shares have been as much as 12.13% higher this morning to $0.185.
What’s next
OZM has prioritised follow-up RC drilling at the Mulgabbie North Demag Zone, along with ongoing RC drill testing of aircore saprolite gold anomalies and extensions to the Ben and James prospects.
As reported yesterday, OZM will continue to use best practice RC drilling, sampling and assay protocols that could lead to a future JORC 2012-compliant resource at Mulgabbie North.
In the meantime, drilling results will be reported as soon as they become available.