OzAurum Resources Ltd (ASX:OZM) has fielded strong results from a diamond drill hole, MNODH 006, recently completed at the Demag Zone, its virgin gold discovery at the Mulgabbie North Project in WA.
The Demag Zone is proving to be the gift that continues to give, demonstrating the potential to host significant gold mineralisation directly adjacent to Northern Star Ltd’s Carosue Dam mill.
Significant gold
OZM believes the intermediate to felsic volcaniclastic units at Mulgabbie are equivalent to the Black Flag group within the Kalgoorlie stratigraphy, an area that hosts significant gold deposits like the 6.5-million-ounce Kanowna Belle Gold Mine.
To top it off, OZM is running this operation on a shoestring, using a company-operated diamond drill rig to reduce costs by roughly 50% of current commercial drilling rates.
Highlights
Diamond hole MNODH 006 intersected a wide zone of alteration and sulphides, including significant gold mineralisation:
- 4 metres at 3.65 g/t gold from 280 metres – within 7 metres at 2.45 g/t from 279 metres;
- 1-metre at 5.38 g/t from 453 metres; and
- 3 metres at 1.37 g/t from 257 metres.
The company is now focused on the current diamond hole, MNODH 007, where the drill has reached a depth of 132.3 metres on the way to 430 metres.
What’s next?
Next up is framework diamond drilling, which will strategically target high-grade gold ore shoots and assist in the understanding of structural controls and faulting at the Demag Zone.
Structural work is planned to kick off in mid-October to assist with targeting these high-grade ore shoots and to better understand the structural architecture of Mulgabbie North.
Once the structural work and interpretation has been bedded down, the company will begin a program of reverse circulation (RC) drilling.
Composite samples from Mulgabbie North will be dispatched for sighter metallurgical test work.
New gold dream
“The new virgin gold discovery Demag Zone has continued to intersect significant gold mineralisation, with planned structural work on site expected to assist us in targeting high-grade ore shoots with future drilling,” CEO and managing director Andrew Pumphrey said.
“Importantly, we believe that strategic framework diamond drilling will be the key to unlocking the potential of the Mulgabbie North Project.
“We look forward to providing shareholders with further drilling updates at this exciting new discovery.”