Cauldron Energy Ltd (ASX:CXU) is trading higher on uncovering high-grade gold during a diamond drill campaign at the Blackwood Gold Project in the central Victorian goldfields.
The latest assays returned up to 20.1 g/t gold from the project in the historic Blackwood goldfield with the diamond drill rig focused on exploring the Annie Laurie reef structure.
Here, Cauldron is out to better understand the nuggety and narrow-vein orebodies that host the gold mineralisation, which is crucial for future resource definition.
The company’s best intersections include:
- 0.6 metres at 20.1 g/t gold from 20.8 metres; and
- 0.35 metres at 1.06 g/t from 19.5 metres.
“The first step”
Commenting on the findings, Cauldron executive director Simon Youds said: “We are excited about finally being able to demonstrate the high-grade potential at Blackwood and the result is recognition of the effort of our small but dedicated team who have persevered through a number of operational challenges.
“This drilling program is the first step in understanding the deportment of gold in the high-grade plunging gold shoots at Blackwood, which will then inform our exploration model and strategy going forward to prove up the true size potential of this goldfield.”
Shares have been as much as 56% higher intra-day to $0.014.
Scope for multi-million-ounce endowment
Cauldron’s ongoing drilling at Blackwood is designed to expand and demonstrate the full potential of the goldfield over time, meaning the drill campaign at the Eastern Reefs marks just the first step of a broader work program.
The project is no stranger to prospecting: Blackwood is a historical mining centre and work has previously taken place on a number of shafts, creating extensive underground workings limited to above the water table in most areas.
In fact, more than 100,000 gold ounces have been mined from the Blackwood goldfields' underground shafts since the 1800s, establishing a rich gold history that Cauldron is eager to build on.
Fast forward to today and the latest results, Cauldron believes there’s strong potential to define a multi-million-ounce gold endowment at the precious metal property.
The company will keep the market informed of its drilling progress and any further developments in the Victorian gold hotspot.