Helix Resources Ltd (ASX:HLX) has identified some large-scale gold extensions at its Muriel Tank Gold Project in central New South Wales.
The project, 60 kilometres west of Nyngan, has shown strong potential for additional high-grade gold discoveries following recent auger sampling.
Continuity of gold
A total of 335 auger drill holes revealed continuity of gold mineralisation over a 3-kilometre strike between the Golden Horseshoe and Russell’s area.
There is no auger coverage to the west, which suggests further untapped potential.
The prospective strike at Mitchell’s has been extended 150 metres south and remains open in that direction.
Rock chip sampling along strike 170 metres north of Mitchell’s shaft yielded assays up to 17.92 g/t gold, confirming the area’s high-grade potential.
Elevated gold in auger sampling coincides with rock chip assays as high as 28.17 g/t gold west of Butler’s, an area with no recorded historical workings.
Gold anomalies in this area remain open to the south. A new gold-anomalous zone has also been identified northeast of Russell’s.
Historical exploration targeted outcropping quartz veins, leaving the potential for gold-bearing quartz veins under alluvial cover largely unexplored.
Near Mt Boppy
What’s more, the Muriel Tank Project is just 20 kilometres from Manuka Resources’ Mt Boppy Gold Mine, which recently saw the construction of a new processing plant.
The Mt Boppy site has historically produced 417,000 ounces of high-grade gold, providing a potential processing option for any future discoveries at Muriel Tank.
Helix plans to systematically test the newly identified high-grade vein extensions through upcoming drill programs.
A mechanical auger sampling program is already underway to explore areas lacking outcrop, supporting the company’s broader evaluation strategy.
These results are timely, given the current record global gold prices, and the company is optimistic about the economic potential of the project.
With sparse historical drilling and significant evidence of high-grade mineralisation, Helix considers Muriel Tank an excellent opportunity to make further discoveries and unlock value from its gold portfolio.
Helix managing director Kylie Prendergast said: “In many cases this historical drilling at Muriel Tank intersected underground stopes, demonstrating how closely targeted past exploration was, directly at the known workings.
Sizeable goldfield
“Building on recent gold rock chip results, the auger drilling campaign has confirmed broad areas of mineralisation which significantly increase the potential of the largely undrilled Muriel Tank prospect. The historical goldfield is sizeable and previous drilling was very patchy.
“There is a paucity of information about the ground between and along strike from these deposits, given much of the focus was on outcropping areas.
“While the auger work conducted to date is early stage, it is demonstrating a far greater distribution of mineralised structures, possible greater continuity and overall a much larger scale making it a very attractive, modern-day gold target.
“Based on these results, Helix has commenced target generation work for an RC drilling campaign to be conducted in the new year.
“In addition, auger drilling work will be continued to further expand our geological database. With a systematic program underway, the outlook at Muriel Tank is particularly favourable with elevated gold prices and emerging pathways for a gold project in the region.
“Nearby, 20 kilometres to the west, there is a new gold plant under construction at the Mt Boppy Gold Mine as well as Aurelia’s Peak Plant and Kingston’s Mineral Hill Plant.”