Alliance Resources (ASX: AGS) and joint venture partner Tyranna Resources (ASX: TYX) have confirmed a new high-grade gold zone while drilling on the Weednanna gold prospect at the Wilcherry project in South Australia.
Alliance Resources holds a 61.36% interest in the gold and base metals project, with Tyranna Resources holding the remaining 38.64% stake.
A third round of reverse circulation drilling was completed at the project in early November. The drilling program was designed to define the geometry of three targets with step-out drilling, as well as test a new fourth target with initial drilling.
A total of 21 holes were drilled for 3246m. Highlights included: 35m at 3.65 grams per tonne of gold from 43m including 9m at 8.91 g/t gold; 15m at 18.21 g/t gold from 107m including 7m at 35.94 g/t gold; and 3m at 25.45 g/t gold from 81m including 1m at 74.2 g/t gold.
Five holes were drilled at the new fourth target to test some wide spaced historic gold intercepts. The mineralisation appeared to be open down dip in the east on most sections, and down plunge in the south. According to Alliance Resources, there was also scope to extend this mineralisation in the north.
“These latest and final results from the drilling program at Weednanna clearly indicate to us that we have a significant high-grade gold project on our hands,” Alliance Resources managing director Steve Johnston said.
“We expect to commence progressing Weednanna towards a resource definition, encouraged by these latest widths and grades. Weednanna continues to impress and with further exploration planned we believe it has the scale and grade to be a company making project,” Johnston added.
The joint venture is planning to carry out further RC drilling in February. This work will test the limits of the high-grade gold shoot at the fourth target, as well as test other new areas at Weednanna.
Also in early 2018, the project partners are planning to establish a three-dimensional geological model and estimate a mineral resource.
Shares in Alliance Resources were up 20.88% by close of trade on Wednesday. Shares in Tyranna Resources were also up 5% on the news.