Mantle confirms new gold reef structure
Mantle Mining Corporation (ASX: MNM) has provided a promising update in relation to the development of the high grade Morning Star and Rose of Denmark gold mines in Eastern Victoria.
This follows the completion of an underground drill program that was commenced in the
Stacpoole zone on the northern limits of the Morning Star adit, testing the new geological model unknown to previous operators.
The objective was to confirm the location and potential size/thickness of the Stacpoole zone between two areas of previous drilling, to identify a sizable block amenable for bulk sampling and trial mining.
The reef has subsequently been intersected in all drill holes with quartz vein thicknesses between 200 mm and 700mm, broadly in line with expectations. A total of 373.6 metres was drilled in 9 locations, with the deepest hole being 33 metres.
Consequently, the goals leading into this drill program have been met with the company now able to determine the position and degree of development of the Stacpoole zone.
This is important in guiding further potential underground sampling and/or trial mining, as it will give a more accurate indication of gold grades, since drilling in this district is known to significantly underestimate gold grades.
Further drilling will be aimed at confirming the potential for a reef extension. Assays received to date contain consistent gold mineralisation in almost every hole which augurs well for the planned development of the project.
Management was also buoyed by the fact that its geological team has identified the Rose of Denmark gold mine as another highly prospective, independent source of ore for processing through the company’s wholly-owned gold processing plant.
This is an early stage identification and investors should seek professional financial advice for further information if considering this stock for their portfolio.
Phase 2 drilling could open up possibility of mining directly to the reef
MNM has prepared a diamond drill program in the most prospective areas of the Rose of Denmark mine to further test for gold grade and quartz ladder vein density and any other prominent geological features. Commencement of drilling is subject to channel sampling and mapping outcomes.
MNM is now drilling in further locations to test for the southern extension of the faulted dyke/sediment contact. Results to date show that the Stacpoole zone is significantly below the Age of Progress reef and therefore persists much closer to the adit entrance than first thought.
Consequently, the amount of adit rehabilitation required prior to declining to the reef should decrease significantly, leading to the possibility of mining directly to the reef and driving immediately in the Stacpoole Zone, with ore, from the adit entrance. Management also postulated that the Stacpoole Zone may have a longer payable zone than first thought.
MNM has an advanced high-grade gold project with a strategic tenement footprint and significant infrastructure including a processing plant positioning it well for near-term trial mining.
These positive factors are arguably not captured in the company’s market capitalisation of circa $11 million. In fact, the value attributed to the refurbished Morning Star mine shaft, processing plant and administration/accommodation facilities is $11.6 million.