Perth-based explorer Anglo Australian Resources (ASX: AAR) has intersected significant bedrock gold during a drilling campaign at its wholly-owned Mandilla gold project near Kalgoorlie, Western Australia.
The company recently completed a three-hole diamond drilling program on the Mandilla South and Mandilla East prospects, partly funded through a grant by the WA Department of Mines and Petroleum under its exploration incentive scheme.
Anglo Australian today announced one of the two holes drilled at Mandilla East intersected 2.7m at 46.1 grams per tonne of gold from a depth of 123.3m, including 1m at 122.3g/t gold from 124.3m.
Other drilling highlights from this eastern prospect included 1.2m at 24.8g/t gold from 65.8m and 4m at 7.1 g/t gold from 87.5m.
The company also returned significant intersections at the Mandilla South prospect including 1m at 7.8g/t gold from 70m, 6m at 3.6g/t gold from 98m and 1m at 16.8g/t gold from 179m.
Anglo Australian has already identified a bedrock inferred resource for Mandilla East of 357,000t at 3.3g/t gold for 38,000 contained ounces.
Combining the latest drilling results with previous reverse circulation drilling at the prospect, the company said there was potential for a steeply-dipping gold mineralised envelope with an apparent width of about 70m.
It also noted that the limited bedrock drilling at Mandilla East to-date shows the gold is related to an extensional vein array within the Mandilla granite and mineralisation might be “better modelled as a high tonnage, lower grade target rather than the low tonnage, high-grade approach previously taken”.
Anglo Australian chairman John Jones described the latest drilling results as “very encouraging”.
“With 38,000oz of gold already the subject of a resource at Mandilla East and to now identify the prevalence of thick sections of gold mineralisation with intervals of high-grade gold exceeding 20g/t [gold] at depth augurs well for what might well be a significant upgrade,” he said.
“On top of that, to now confirm the presence of significant bedrock mineralisation at Mandilla South, a plus 2km-long supergene gold target with a plus 5g/t gold 300m core, is also pretty exciting,” Mr Jones added.
The company noted the drill holes has only been sparingly sampled and assayed, with additional results expected over the coming weeks.
It said a follow-up RC drilling campaign comprising some 5,000m in 30 holes would commence “as soon as possible”.
“I very much look forward to receiving and reporting on the outstanding assay results as soon as they are available, and to returning to Mandilla as soon as we can to conduct the forthcoming RC drilling campaign,” Mr Jones said.
By afternoon trade, Anglo Australian shares were up 18.64% to $0.07.