Aldoro to drill 5000 metres at Penny South

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Published 25-NOV-2019 09:44 A.M.

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4 minute read

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Aldoro Resources Limited (ASX:ARN) has provided an update on the completion of the interpretation and targeting work at the company’s Penny South Gold Project.

Interpretation of the high-resolution ground magnetic survey in September revealed seven target areas within the Penny South tenement (E57/1045).

These targets have generally either been untested or poorly tested by historic drilling.

As reported in May (under the ASX code SPX), targets identified include a strike extent of more than two kilometres, representing a continuation of the magnetic low corridor known to host the neighbouring Penny West and Penny North deposits.

Based on an exploration model for Penny South, the target corridor is shown to correspond to a prospective assemblage of low magnetic greenstone and granodiorite units observed to host gold mineralisation at the neighbouring Penny West project.

As these developments have added confidence to management’s expectations for success, a program of work is planned for a 5000 metre aircore (AC) drilling program first pass drilling testing of the highest priority targets to commence as soon as possible.

Correlation with Spectrum Metals’ Penny West ground

The neighbouring Penny West project has been shown by Spectrum Metals to sit within a north-south trending magnetic.

As indicated below, Aldoro’s high resolution ground magnetic survey highlights the extension of this magnetic low corridor south from the Penny West project into Aldoro’s tenement E57/1045.

The neighbouring Penny West project has been shown by Spectrum Metals to sit within a north-south trending magnetic.

Aldoro has completed a lithostructural interpretation of the ground magnetic survey area with the aid of a drill hole database.

This has yielded promising results in terms of assisting management in understanding the surrounding geological characteristics.

In geological terms the results indicate that the eastern half of the survey area is composed of strongly magnetic folded ultramafic units, whilst the western half is composed of non-magnetic and weak to moderately magnetic greenstone units against a sheared contact with the surrounding granite terrane.

The mineralised quartz vein at Penny West and Penny North is understood to be hosted in a sheared granodiorite at the base of a mafic greenstone unit.

A total of 12 holes in the Penny South drill hole database reported granodiorite intersections.
A total of 12 holes in the Penny South drill hole database reported granodiorite intersections.

A total of 12 holes in the Penny South drill hole database reported granodiorite intersections, all of which were in the western side of the survey area, within the magnetic low corridor, along strike from the Penny West project.

Many of the other drill holes within the magnetic low corridor lack logging information.

Seven targets identified

The seven targets that were identified as a result of the recent geological study can be summed up as follows.

Aldoro has identified seven targets.

Targets T1, T2 and the adjoining greenstone unit containing granodiorite occurrences within the magnetic low corridor are the highest priority targets for immediate follow up.

The planned 5000 metre AC drilling program will include a first pass along this target trend.

The other target areas represent interesting magnetic or structural features, some showing similarities to the Youanmi Gold Mine area further to the north that are often either untested or poorly tested by historic drilling.

Further work is planned to interpret and prioritise these as potential drill targets.

Only shallow drilling conducted to date at Penny South

While a total of 652 historic drill holes have been identified across the Penny South tenement (E 57/1045) the average drill hole depth is only 40 metres with only 29 holes having been drilled deeper than 60 metres.

Only 50 holes have been previously drilled in the magnetic low corridor identified as the principal target area within the tenement.

Of these 50 holes 25 have associated geological logging information, of which 12 contain occurrences of granodiorite, within a mafic greenstone assemblage.

In general these occurrences are noted at the end of holes, indicating that the unit itself is untested.

Aldoro believes the historic drilling, targeting the extension of the Penny West shear has been focused slightly too far east of what management now identifies as the priority target corridor.

The open pit of the Penny West Gold Mine is less than 500 metres from the northern boundary of Aldoro’s tenement E57/1045.

The gold lode at Penny West is understood to be a quartz vein with the width between 2 metres and 3 metres hosted within a sheared granodiorite unit near the basal contact.

A simplified model of the Penny West mineralisation is shown below.

The numerous anomalous gold results identified by historic drilling at Penny South within a mafic schist unit include 2 [email protected] 34 g/t gold, 6 metres at 1.27 g/t gold.

With a much more extensive and targeted drilling campaign, Aldoro will be looking to replicate previous strong results, perhaps in more quantity, while also increasing its understanding of the geological model.



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