Alderan Resources now drilling at US project, targeting historic Drum gold mine

Alderan Resources ASX AL8 Detroit Utah Drum Mountains gold mine
Alderan estimates the historic Drum mine may contain up to 67,000oz in remnant gold mineralisation.

Utah-focused explorer Alderan Resources (ASX: AL8) has begun drilling at the Detroit project, where it is focusing on the old Drum mine, which produced 125,000 ounces of gold before it closed in 1989.

The drill target at Drum is open along strike and down dip and has not been subjected to any modern exploration for 33 years.

Alderan is planning to complete 10 holes for about 1,200m to verify and extend known mineralisation.

The company says its modelling of historical drill data highlights “strong” potential for remnant mineralisation, with high-grade gold in structural zones and mineralised extensions of Drum.

‘Rare’ to secure an old but unexplored gold mine

Recently the company reported rock chip samples from Drum mine assaying up to 10.7 grams per tonne. Of the composite grab rock chips, 36 assayed above 0.5g/t and 22 returned more than 1.0g/t.

The project lies within the larger Detroit mining district in the Drum Mountains region of Utah and is located about 175km southwest of Salt Lake City.

The district is the site of numerous historical copper, gold and manganese mines.

Alderan managing director Scott Caithness said the potential of Drum to host a significant gold deposit has clearly been demonstrated.

“It is rare to secure a historical gold mine which has remained unexplored for more than 30 years,” he added.

Exploration target of up to 67,000oz

Freeport McMoRan had previously tried to consolidate what is now the Detroit project, but those efforts were rebuffed.

However, Alderan managed to put together a 24.7sq km ground position through a series of option agreements with tenement owners.

Alderan says there is potential at Drum for up to 1.5 million tonnes of remnant mineralisation, with grades between 1.1 grams per tonne and 1.4g/t, for between 42,000oz and 67,000oz of contained gold.

However, there has been insufficient exploration to estimate a mineral resource.

The mined East Pit ore horizon remains open down dip (below the West Pit) and has not been drill tested.

Drilling between 1982 and 1989 by the previous joint owners returned assays including 13.7m at 6.4g/t, 24.4m at 2.7g/t, and 22.9m at 5g/t. All holes included higher grade intervals.

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