Intermin acquired the project in early 2017 which is 54km northwest of Kalgoorlie-Boulder in Western Australia and favourably located on the highly prospective Zuleika Shear. There is a historic Resource of >100koz and in August the Company commenced Resource confirmation and expansion drilling.
Initial work comprised a single diamond hole to confirm the deposit geometry in order to plan a larger RC infill program which was highly successful and returned a broad intercept of:
- 105m at 1.38g/t Au from 48m (including 41m at 2.35g/t from 73m)
Mineralisation consists of a discrete steeply plunging quartz stock work zone developed within a folded and altered pillow basalt unit within the Zuleika Shear. The host rock is intensely weathered to 70 to 80m depth and there is a surface layer of soil and lateritic mineralisation 1 to 8m thick. Mineralisation is continuous from around 20m depth to the depth limit of drilling at around 200m.
Combined with historic drilling, the stock work zone is interpreted to be roughly circular or funnel shaped in plan, dipping to the northeast and is about 100 to 150m in diameter. The mineralisation has intense sericite-albite-carbonate-pyrite alteration, is bounded by a contact with metasediments to the west and the basalt host rock is intruded by an irregular Archaean dolerite body.
In September 6,282m of follow up RC drilling was completed again returning excellent results including;
- 41m @ 2.63 g/t Au from 69m (AHRC17027)
- 17m @ 5.37g/t Au from 137m (AHRC17043)
- 11m @ 3.72 g/t Au from 46m, 11m @ 6.22g/t Au from 157m and 3m @ 6.48 g/t from 187m (AHRC17039)
- 15m @ 2.26g/t Au from 32m and 6m @ 11.15 g/t Au from 110m (AHRC17032)
- 30m @ 2.98 g/t Au from 73m (AHRC17024)
- 7m @ 4.58g/t Au from 37m and 43m @ 1.46g/t Au from 54m (AHRC17028)
- 19m @ 2.22g/t Au from 39m and 27m @ 2.17g/t Au from 98m (AHRC17031)
- 19m @ 1.50g/t Au from 32m and 38m @ 1.48g/t Au from 86m (AHRC17029)
- 18m @ 2.80 g/t Au from 48m and 11m @ 4.91 g/t Au from 90m (AHRC17020)
- 29m @ 1.84g/t Au from 41m (AHRC17035)
- 19m @ 1.40g/t Au from 33m, 16m @ 3.23g/t Au from 70m and 1m @ 30.70 g/t Au from 91m (AHRC17017)
- 9m @ 3.08g/t Au from 36m, 21m @ 1.38g/t Au from 52m and 34m @ 1.31g/t Au from 104m (AHRC17036)
- 19m @ 2.22g/t Au from 36m (AHRC17031)
- 21m @ 1.83g/t Au from 49m (AHRC17013)
- 9m @ 3.87 g/t Au from 150m (AHRC17034)
The mineralisation geometry is confirmed as shaped like an elongated funnel and there is potential to define an initial low-strip ratio open pit mine. The mineralisation is open in all directions and substantial visible gold was panned by field geologists in most holes suggesting a high gravity gold component and a high nugget gold distribution.
Geological modelling, oxide/primary mineralisation expansion drill program planning, QA/QC programs and early stage mining approval activities are underway. Historic metallurgical testwork conducted in 2011 on oxide, transitional and primary samples indicate favourable total gold recoveries of 93-99%.
Work is currently underway to upgrade the Resource to JORC (2012) compliance and generate priority Resource extension targets.