ERL confirms high grade gold mineralisation at Penny’s Find
Assays from a recently completed six-hole diamond drill programme have confirmed high grade gold mineralisation at Empire Resources’ (ASX:ERL) Penny Find’s open pit gold mine, 50 kilometres northeast of Kalgoorlie.
ERL undertook the drilling programme with the aim of increasing its confidence in the gold mineralisation beneath the open pit, converting some Inferred resources to Indicated, and to obtaining important additional geotechnical data for ongoing underground mining studies.
Penny Find’s mineralisation extends to 250m below surface and remains open at depth. High grade gold mineralisation is hosted by quartz veins at the contact between sediments and basalt. Testwork has shown fresh mineralisation to be free milling with a high gravity recoverable gold component of 85%.
The best results from the six-hold diamond drill programme were:
- 63m at 15.60g/t gold from 168.37m in hole PFD17-02.
- 52m at 6.32g/t gold from 172.50m in hole PFD17-02, including 1.22m at 12.34g/t gold from 174.80m.
- 00m at 8.83g/t gold from 148.00m in hole PFD17-04, including 2.22m at 12.52g/t gold from 150.78m.
- 94m at 10.57g/t gold from 162.36m in hole PFD17-05.
These can be seen on the below long section with drill hole pierce points:
The new drill data has certainly increased ERL’s confidence in the integrity of the earlier drilling results from below the current open pit, which included 5m at 20.88g/t gold, 3m at 14.42g/t gold, 14m at 5.34g/t gold, 6m at 6.77g/t gold, 7m at 5.27g/t gold, and 3m at 8.89g/t gold.
The updated resource estimate is still to be calculated, but once it is done ERL will commence a final underground feasibility study that is expected to be finalised within a few months.
Empire’s Managing Director, Mr David Sargeant commented on the assay results:
“Results from the recent underground drilling have given us the confidence to move ahead with a final underground feasibility to extend Penny’s Find’s mine life beyond the open pit.
“With gold mineralisation open at depth, there is good potential to add to the current underground Indicated and Inferred resource of 170,000t at 5.40g/t gold.”
Any addition to the Indicated and referred resource is speculative at this stage and investors should seek professional financial advice if considering this stock for their portfolio.
ERL holds a 60% direct interest in the Penny’s Find gold project with the remaining 40% interest held by unlisted Brimstone Resources Ltd.
These drill results follow last month’s news that ERL had poured its first gold bar from the open pit operations, with the mine’s ore being toll processed at two nearby regional gold mills.
Going forward, there’s should be plenty of newsflow in the coming months with the updated Resource estimate and final underground feasibility study.
S3 Consortium Pty Ltd (CAR No.433913) is a corporate authorised representative of Longhou Capital Markets Pty Ltd (AFSL No. 292464). The information contained in this article is general information only. Any advice is general advice only. Neither your personal objectives, financial situation nor needs have been taken into consideration. Accordingly you should consider how appropriate the advice (if any) is to those objectives, financial situation and needs, before acting on the advice.
Conflict of Interest Notice
S3 Consortium Pty Ltd does and seeks to do business with companies featured in its articles. As a result, investors should be aware that the Firm may have a conflict of interest that could affect the objectivity of this article. Investors should consider this article as only a single factor in making any investment decision. The publishers of this article also wish to disclose that they may hold this stock in their portfolios and that any decision to purchase this stock should be done so after the purchaser has made their own inquires as to the validity of any information in this article.
The information contained in this article is current at the finalised date. The information contained in this article is based on sources reasonably considered to be reliable by S3 Consortium Pty Ltd, and available in the public domain. No “insider information” is ever sourced, disclosed or used by S3 Consortium.