Alkane Resources Ltd (ASX:ALK, OTC:ALKEF) has fielded a suite of promising results following an extensive infill drilling campaign at the Northern Molong Porphyry Project (NMPP) in Central West New South Wales.
The drilling efforts, aimed at evaluating the potential of the Kaiser deposit as the company moves towards a resource update, have yielded several broad intersections that reveal notable grades of gold and copper.
Extensive gold and copper
The most extensive intersection was from KAI171, with 456 metres grading 0.33 g/t gold equivalent (AuEq) from 9 metres, including a high-grade 1 metre at 5.02 g/t AuEq.
Among other strong results, drill hole KAI122 delivered 257 metres grading 0.76 g/t AuEq from 290 metres, including a high-grade section of 27 metres at 3.26 g/t AuEq.
Drill hole KAI123 returned 168 metres at 0.61 g/t AuEq from 481 metres, with an 18-metre section grading 1.62 g/t AuEq.
Other finds included:
- KA198 - 41 metres grading 3.05 g/t AuEq (1.39 g/t gold, 1.21% copper) from 1 metre including 14 metres grading 8.05 g/t AuEq from 18 metres;
- KAI206 - 62 metres grading 1.31 g/t AuEq from surface including 16 metres grading 2.94 g/t AuEq from 42 metres;
- KAI124 - 1 metre at 37.8 g/t AuEq from 129 metres and a broader 120.5 metres at 1.00 g/t AuEq from 351 metres;
- KAI147 - 10 metres grading 1.95 g/t AuEq from 273 metres;
- KAI148 - 17 metres at 0.58 g/t AuEq from 399 metres; and
- KAI170 - 149 metres at 0.46 g/t AuEq from 6 metres.
These results give the company confidence in the continuity and extent of mineralisation across the project.
This drilling campaign has also tested historical areas around the Kaiser workings, previously unaccounted for in the mineral resource estimate (MRE), using modern techniques.
The gold-copper equivalency calculations are based on the 12-month average prices of gold at US$1,950 per ounce and copper at US$8,600 per tonne, considering a recovery rate of 81% for copper and 71% for gold from the Kaiser metallurgical studies.
Surface and at-depth mineralisation
Managing director Nic Earner said: “The shallow infill drilling at Kaiser has been completed, showing higher grades from surface in these latest results as well as strong continuity of mineralisation at depth.
“Both the near surface grades and continuity at depth are encouraging as we look to update the Kaiser mineral resource estimate.
“We expect to have the final results available to announce in March and the updated resource completed in March/April.
“The updated Kaiser resource estimate and the recently released Boda resource update will then be combined in a scoping study to demonstrate the size and scale of these deposits as well as their potential economic value.
“The intensive exploration programs at Boda and Kaiser conducted over the last two years are now ending, which will significantly reduce the rate of exploration spend.
“However, our regional exploration program continues throughout the broader Northern Molong Porphyry Project, testing many of the targets previously identified.”
What's next
Alkane Resources has completed drilling at the Kaiser deposit and is now focusing on the Driell Creek and Murga prospects within the NMPP.
These areas, located within the structural zone extending from Boda-Kaiser, are under exploration with both reverse circulation and diamond drilling rigs.
The company plans to mobilise an additional high-capacity diamond core drilling rig to test deeper targets beneath known mineralisation at these prospects by late February.