Magmatic Resources Ltd (ASX:MAG) has recorded strong and shallow gold at the Dicks Reward historic mine in the Bodangora prospect in New South Wales, giving the company's shares a 23.33% boost this afternoon.
Five diamond holes totalling 714 metres targeting extensions along strike to the northwest and southwest have returned significant intersections including:
- 1.7 metres at 12.9 g/t gold and 8 g/t gold from 65.5 metres;
- 1.0 metres at 0.5 g/t gold from 58.0 metres;
- 0.35 metres at 10.7 g/t gold from 78.8 metres;
- 1.0 metres at 1.4 g/t gold from 62.0 metres; and
- 0.3 metres at 1.3 g/t gold from 66.8 metres.
The company said the 1.7 metre intersection is encouraging as it indicates that shallow, high-grade mineralisation remains open to the northwest of the Dicks Reward historical workings.
Significant potential mineralisation may also be present below the central portion of the deposit, which was not able to be drilled due to exceptionally wet conditions in the region.
Further work on the project will focus on extensions to the existing workings, particularly Dicks Reward, and the potential for high-grade repeat lodes in the broader Bodangora Goldfield, which produced an estimated 230,000 ounces of gold between 1869 and 1917.
Magmatic is currently reviewing the geological data collected from the most recent diamond drilling and the aircore geochemical survey completed earlier in the year.
Diamond core image from Dicks Reward showing an auriferous quartz vein with sulphides at around 79 metres down-hole.
Myall drilling
Plan of the broader Kingswood prospect area showing historic drilling and downhole copper mineralisation, along with the basement copper geochemistry from aircore drilling and key targets identified for follow-up drilling.
The New South Wales resources regulator has approved Magmatic’s revised assessable prospecting operation (APO) application this week to allow for the construction of formed, all-weather drilling pads at the Myall Copper-Gold Project.
The project covers the northern extension of the Junee-Narromine Volcanic Belt, and is considered highly prospective for Northparkes-style copper-gold porphyry, with multiple strong copper-gold intersections already drilled.
Magmatic has designed a high impact drilling program of about 3,000 metres targeting the broader Kingswood prospect area given large established footprint of porphyry-associated copper/gold mineralisation and alteration from historic and recent drillings.
Most prospects remain open or poorly tested in every direction given its large area.
Site preparation work for the eight-week drill program has commenced with the drill contractor expected to mobilise to the prospect area within the next 14 days.
