Alderan Resources chases extensions to mineralisation at Drum and Mizpah oxide gold deposits

Drilling at the Drum and Mizpah oxide gold deposits within Alderan Resources’ (ASX: AL8) Detroit project in the US state of Utah has shown potential for the mineralised systems to be significantly larger than historically defined.

The company’s initial hole at Drum intersected a thick oxide gold mineralised interval of 16.2 metres grading 1.04 grams per tonne gold from 60.2m downhole, which included higher grade intervals of 6.3m at 2.9g/t and 1.5m at 5.6g/t.

The results verify gold grades in historical holes drilled into the East Pit and provide confidence in Alderan’s modelling of gold mineralisation which remained at Drum when mining ceased in 1989.

A hole at the southern end of the East Pit was also completed, in an area where Alderan’s modelling indicated that a 20m zone of oxide mineralisation grading more than 1g/t remains below the pit bottom at a depth of 145.24m.

Logging has highlighted that oxidation extends to 111m downhole and that the hole traversed the stratigraphy which hosts mineralisation in the East Pit.

Alderan’s rig is now at the West Pit where it will drill to the north to test down dip from in-pit rock samples which contained up to 10.7g/t gold.

It is in the vicinity of historical drill holes which intersected 9.1m at 2g/t gold from 49m downhole and 7.6m at 2.8g/t from 43m downhole.

Mizpah anomalous assays

Gold assays received for a hole to 164.89m depth at Mizpah were highly anomalous and suggest the deposit could be significantly larger than modelled from historical drilling.

Assays ranged up to 0.98g/t gold within an intercept of 69.5m grading 0.18g/t from 87.48m downhole, which included 5m at 0.77g/t.

The hole was designed to test the down dip extent of a previous mineralised intercept which returned 83m at 0.41g/t gold from 35.8m downhole including 6.9m at 1.98g/t.

Close proximity to the Basin Porphyry intrusive complex saw the hole traverse a sequence of interbedded metamorphosed carbonates and fine-grained clastic sediments consistent with stratigraphy throughout the Detroit district.

The metamorphism has resulted in the development of marbles, skarns and hornfels, and the contacts between the carbonates and clastics are sheared and brecciated.

Alderan’s modelling of historical drilling indicates that Mizpah currently has a north-south strike length of approximately 350m and down dip width of 200m.

The deposit is open along strike to the north and south and the gold mineralisation is believed to extend for a further 350m down dip.

High potential deposits

Alderan managing director Scott Caithness said Drum and Mizpah are considered to be high potential oxide gold deposits.

“Our first verification drill hole gave us confidence in the assessment that there is significant remnant oxide mineralisation and high gold grades at Drum once up to four more verification holes have been completed, our focus will move to extending and delineating the deposit,” he said.

“It is also exciting to see highly anomalous gold at Mizpah as it suggests that the mineralised system could be much larger than modelled from historical drilling.”

Mr Caithness said further resource modelling will be an important step in understanding the economics of a potential oxide gold mine development at Drum and Mizpah and will help set targets and guide the deposit evaluation process.