Helix Resources Ltd (ASX:HLX) has demonstrated upside potential at the Muriel Tank Gold Project in a prolific gold-copper area of central New South Wales with rock chip samples up to 17.92 g/t gold from newly mapped extensions.
The 17.92 g/t sample came from a blue quartz vein along strike 170 metres north of the Mitchells gold mine with the Golden Horseshoe prospect returning a 12.97 g/t sample in blue quartz with visible gold and 6.09 g/t in gossanous quartz veins.
Golden samples
Other encouraging samples from the project in the minerals-rich Cobar Basin were:
- 4.75 g/t from gossanous quartz and wall rock at Russel’s;
- 4.02 g/t, 3.12 g/t, 2.64 g/t and 1.77 g/t from quartz veins and wall rocks in the Brown’s Hope area; and
- 3.51 g/t from the quartz vein at Roach.
The sampling results build on the compilation of previous work at Muriel Tank which includes historical mining and previous patchy auger, soil and rock sample results and limited drill coverage.
At Muriel Tank multiple historical mine shafts over a 5.5 by 1.5-kilometre area produced high-grade gold ore (~15 g/t gold) from quartz veins and breccias up to 2 metres wide with past mining and exploration predominantly targeting outcropping quartz veins.
Unexplored potential
Helix believes there is unexplored potential open at depth, along strike and for quartz veins under alluvial cover.
“Many of these excellent gold results are from new vein areas not previously explored, demonstrating the upside potential of Muriel Tank,” managing director Kylie Prendergast said.
"The historical goldfield is a sizable 5.5 kilometres by 1.5 kilometres area and previous drilling was very patchy – in many cases it intersected underground stopes so we don’t believe it was effective.”
Location of Muriel Tank tenement and proximity of nearby gold processing infrastructure.
About Muriel Tank
Muriel Tank is a historic goldfield with recorded production of more than 400 tonnes at 15 g/t gold from shallow workings up 30 metres deep. Mineralisation occurs within a structural corridor extending from the Russel’s Mine in the northwest to Brown’s Hope in the southeast.
Ongoing results at Muriel Tank coincide with record global gold prices and the construction of a gold processing plant at the Mt Boppy Gold Mine owned by Manuka Resources, which is 20 kilometres east of Muriel Tank and where there has been 417,000 ounces of very high-grade historical gold production.
Helix considers there is an excellent opportunity to make further gold discoveries, which, based on the historical mine grades, could be trucked to a number of regional processing plants.
Timing is right
"International gold prices are high and Muriel Tank is well located close to current processing infrastructure suitable for gold recovery,” Prendergast said.
“Nearby there is a new gold plant under construction at the Mt Boppy Gold Mine 20 kilometres to the west as well as Aurelia’s Peak Plant and Kingston’s Mineral Hill Plant.
"We look forward to rolling out the drill rig at Muriel Tank to commence the first steps of a systematic exploration program for new gold mineralisation.”
Field prospecting and mapping resumed in early 2024 after a five-year hiatus and identified sub-parallel and along strike zones of blue quartz veins, quartz breccia and stockwork that are highly prospective for further gold mineralisation.
The new quartz veins had not been previously sampled or tested by drilling, based on information in the recently completed compilation of past exploration.
Next steps
Helix’s next steps at Muriel Tank involve defining drill targets with the following work:
- Extensional and infill auger drilling is in progress with initial results expected in November;
- Mapping and rock chip sampling will continue; and
- Preparation for a follow-up RC drilling program is underway.
At the Bijoux Copper Project in the Western Group Tenements, RC drilling is in progress and an update on geological observations will be released at the completion of the program and assays results.
"In addition to Muriel Tank, Helix is advancing several priority targets in its pipeline which we believe have potential to deliver new copper and gold discoveries,” the MD added.
"All of these assets reside in the highly endowed, Cobar region close to established operations and processing facilities.”