AuTECO Minerals Ltd (ASX:AUT) has returned the highest-grade intersection to date of 1,020 g/t gold over 0.4 metres in drilling of the Tyson vein at the Pickle Crow Gold Project in Ontario, Canada, and the bonanza result is outside the 2.23-million-ounce resource at 7.8 g/t.
As a result of this intersection from 809.9 metres downhole in hole AUDD0333 and other strong results from Tyson step-out drilling, AuTECO is confident of delivering gold resource growth in a mineral resource update to be handed down next quarter.
This drilling has expanded the known extent of the Tyson vein system with mineralisation intersected around 200 metres below previous drilling.
Resource growth potential
The high-grade Tyson vein system, which was initially identified by the company in October 2021, is expected to be included in the Pickle Crow resource for the first time.
Other high-grade results from the drilling at the Vein 5 structure include:
- 0.4 metres at 71.9 g/t gold from 126.1 metres downhole in hole AUDD0315;
- 0.4 metres at 29.8 g/t from 62.9 metres downhole in AUDD0331; and
- 1.9 metres at 8.6 g/t from 699 metres downhole in AUDD0333-W1.
AuTECO chief executive officer Darren Cooke said: “The recent Tyson results continue to demonstrate that we are onto a significant new mineralised system that has not been historically mined.
“Not only have we extended the known depth of the vein system by more than 200 vertical metres, but the intersection of 1,020 g/t gold is the highest-grade intersection drilled by AuTECO to date.
“The Tyson result is reminiscent of the intersections at Northern Star’s Jundee mine.
“AuTECO is well funded to continue the exploration and growth campaign with two rigs planned to drill for the remainder of 2022.”
Hole AUDD0333 delivers
Hole AUDD0333 was completed at a depth of 1,263 metres and intersected six zones of veining. Assay results received to date include:
- 0.4 metres at 1,020 g/t gold from 809.9 metres; and
- 2.7 metres at 4.7 g/t from 840.5 metres.
Further assay results from the Tyson holes are still pending.
BIF results
In addition to the Tyson vein results, broad, shallow mineralisation within banded iron formation (BIF) units to the west of the main Tyson vein system has been intersected with results including:
- 6.2 metres at 3.0 g/t gold from 138.8 metres downhole in AUDD0333 at Tyson; and
- 11 metres at 1.6 g/t from 32 metres downhole in AUDD0315 at Vein 5.
Vein 5 high-grade results
The Vein 5 system is also providing strong encouragement for AuTECO with recent drilling confirming extension to the vein structure.
Historically, more than 200,000 ounces of gold were extracted from the high-grade vein, with the continuous structure averaging around 0.5 metres in width.
Other high-grade results include:
- 0.4 metres at 9.4 g/t from 152.1 metres in AUDD0338;
- 1-metre at 7.2 g/t from 433.7 metres in AUDD0335;
- 1.8 metres at 5.5 g/t from 346 metres in AUDD0334; and
- 1.2 metres at 5.1 g/t from 65.8 metres in AUDD0334.
NW to SE cross section showing multiple mineralised zones including the step-out hole AUDD0333 and the wedge (AUDD0333-W1). The latest results are in beige.
The latest results are considered particularly important by the company because they are outside the existing inferred resource and demonstrate the opportunity to continue growing the resource.
Ongoing drilling
A 50,000-metre drill campaign is in progress focused on resource growth in the historic Shaft 1 (Vein 5) and Shaft 3 areas (Tyson) of Pickle Crow and is anticipated to conclude in early 2023.
About 20,000 metres of this campaign is planned for early-stage targets outside of the current 2.23-million-ounce resource.
AuTECO manages about 500 square kilometres of tenure in the Pickle Lake district and continues to pursue a dual-track strategy of advancing both the near-mine resource growth and regional exploration concurrently.
Winter campaign
As site accessibility improves in winter, the exploration focus from November 2022 through March 2023 will shift to regional exploration in addition to near mine targets that are inaccessible during summer, such as Tyson.
Two drill rigs are on site, with the winter regional drilling campaign about to commence.
The company remains well funded for its exploration programs, with A$11 million in cash at September 30, 2022.