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Shree prepares to drill targets at Golden Chimney
2 minute read
Shree Minerals Ltd (ASX:SHH) has received promising assays from a reconnaissance mapping, and infill auger soil sampling program at its Golden Chimney Project.
The project located 40 kilometres south of Leonora occupies an area of approximately 65 square kilometres within the prolifically mineralised Leonora geological terrain.
Significant gold deposits in the area include the Sons of Gwalia gold mine (1.9 million ounces in reserve at a grade of 7.5 g/t), the King of the Hills mine (resources of 380,000 ounces), Tower Hill (resources of 625,000 ounces) and Ulysses (resources of 760,000 ounce).
As indicated below, two of the largest of the surrounding mines in Sons of Gwalia and Ulysses lie only a short distance to the north, with the former boasting particularly high grades.
Across Exploration Licence E40/378, the company drilled 240 shallow, vertical auger holes on a 100 metre x 50 metre spaced grid.
This enabled Shree to focus on widespread, coherent near-surface gold and multi-element anomalies located over mafic and felsic volcanic rocks identified in a prior 200 metre by 100 metre grid.
Fieldwork and the infill auger sampling have enhanced the geochemical anomalies at both Golden Chimney West and Golden Chimney East.
Altered felsic volcanic rocks at Golden Chimney West are anomalous in gold, bismuth and silver.
Upcoming drilling campaign could drive shares higher
Previously unknown old gold workings were found at the Golden Chimney East gold and arsenic anomaly, and sampling of the mullock dumps returned assays up to 30 g/t gold.
Management said that it expects to commence drilling of defined targets in the near term.
Early stage mapping results have created share price momentum with Shree now trading approximately 30% above July levels.
Consequently, there is the prospect of sustained upside should the company deliver successful drill results.