OzAurum Resources Ltd (ASX:OZM) has enhanced the golden potential of Mulgabbie North Project in WA’s Eastern Goldfields through shallow, high-grade drill results of up to 13 metres at 4.60 g/t from 21 metres including 1-metre hits at 22.70 g/t and 22.10 g/t from 21 and 22 metres respectively.
The encouraging results have been returned from recently completed reverse circulation (RC) and diamond drilling programs at the James Prospect.
Strong results
Apart from the 13-metre result in diamond hole MNODH 014, other assays of note include:
- 23 metres at 2.46 g/t from 56 metres including 6 metres at 5.10 g/t from 70 metres in vertical RC hole MNORC 08 at James;
- 13 metres at 1.58 g/t from 22 metres in MNORC 204 at the Demag Zone;
- 8 metres at 2.04 g/t from 35 metres in MNODH 013 at James; and
- 17 metres at 0.92 g/t from 50 metres including 11 metres at 1.14 g/t from 52 metres in MNORC 203 at Demag.
They also continue to demonstrate the potential of the Mulgabbie North Relief Shear to host significant gold mineralisation directly adjacent to the Northern Star Resources Ltd (ASX:ASX:NST) Carosue Dam mill.
“Exciting progress”
CEO and managing director Andrew Pumphrey said: “The company continues to make exciting progress at Mulgabbie North.
"Further excellent drilling results continue from the Mulgabbie North Project with the mineral resource estimate scheduled to be released in Q2 2023 – representing a huge milestone for the company.”
Mulgabbie North Project.
Recent drilling
Holes MNODH 013 and 014 were drilled as twin holes to existing RC holes, MNORC 038 and 004, at the James Prospect - demonstrating the high repeatability of diamond drill hole grades to RC drill hole grades and providing confidence in the project moving forward.
As well, strong RC drill results continue to be received from the Demag Zone, between the Alicia and Ben prospects.
A thick blanket of high-grade supergene gold mineralisation has been delineated by aircore drilling over the Demag Zone that OZM has targeted with RC drilling and diamond drilling.
The Demag Zone is on the Relief Shear and the lithological contact that hosts gold mineralisation is located at the James, Ben and Alicia prospects.
Other prospects
OZM has also drilled one diamond hole MNODH 010 at the Hotel Prospect that intersected 10 metres at 0.87 g/t gold from 22 metres and 13 metres at 0.71 g/t from 44 metres including 6 metres at 1.12 g/t from 47 metres.
A further two diamond holes, MNODH 011 and 012, were drilled at Perseverance Prospect targeting gold mineralisation on the contact of a basalt unit and the dolerite but both failed to intersect significant mineralisation.
Mulgabbie North gold mineralisation is open along strike and at depth with many targets still to be drill tested with future RC drilling.
Intrusive porphyries have been intercepted in a number of RC drill holes at Mulgabbie North along the Relief Shear.
Previous RC drilling at Mulgabbie North defined primary gold mineralisation for more than 2.8 kilometres of strike.
4.2-kilometre strike
RC results, combined with aircore results defining new zones of mineralisation now extending for 4.2 kilometres in strike, further highlight the potential of Mulgabbie North to host a significant project.
Future geological work will be undertaken to understand the potential links of intrusive porphyry to current gold mineralisation and will be targeted with future diamond drilling.
What’s next?
Ongoing diamond drilling at the Mulgabbie North will recommence in the middle of this month.
The timing of the JORC 2012-compliant resource to be estimated has been revised and is now expected to be completed in Q2 2023.
Twinning of RC holes by diamond drill holes is a requirement of mineral resource estimation QAQC process.
Diamond rig savings
Another source of encouragement for OZM is the use of a diamond drill rig and associated equipment that is owned by CEO Andrew Pumphrey.
As this has been supplied to the company at no cost, OZM only has to pay operating costs, which means a saving of about 50% of current commercial drilling rates and providing maximum flexibility with diamond drilling requirements.
Heap leach test work
OzAurum has started sighter heap leach test work with the first results from this program expected to be reported shortly.
Further diamond drill holes will be drilled to recover oxide, transition and fresh samples to be used for this work.
"First sighter heap leach metallurgical results will be released shortly aimed at providing potential treatment options,” Pumphrey added.
“We look forward to updating the market on these results as they become available.”