Advance Metals (ASX: AVM) has discovered a previously unrecognised high-grade gold structure less than 50 metres below surface immediately east of the historical Happy Valley workings at its Myrtleford project in Victoria.
The company intersected the new zone in step-out diamond hole AMD016, which returned 0.6 metres at 66.7 grams per tonne gold from 51.3 metres and contained coarse visible gold up to four millimetres across.
The intersection represents the shallowest gold mineralisation drilled at Happy Valley to date and materially expands the near-surface potential of the system beyond the known lodes.
Geological logging identified a mineralised quartz vein high in the hole that does not appear to correlate with any previously mapped Happy Valley structures, in a new zone approximately 100m east of the historical workings that sits outside the footprint of the Old Happy Valley, New Happy Valley, and Porpunkah reefs.
Advance believes the discovery highlights the potential for additional parallel structures within the broader Happy Valley corridor that have not been systematically tested.
Similarity to Porpunkah Reef
Structural measurements indicate the newly identified vein suggests a similar north-south orientation to the narrow but high-grade Porpunkah Reef, which was historically developed and mined in the mid to late 1800s and is recognised for its high-grade character despite limited width.
Advance said the structural similarity raises the possibility that the new zone represents a repeat-style reef system capable of hosting additional high-grade mineralisation.
The company’s technical team are currently evaluating the potential of this area, and has further drilling planned to test continuity and orientation.
Drilling at Happy Valley is continuing from a newly established pad further north, designed to test both the new structure and the main Happy Valley lodes at depth.
Primary System Assays Pending
Assay results for the lower portion of hole AMD016, which targets the primary Happy Valley system, remain pending and are expected in the coming weeks.
Advance has also received final results for nearby hole AMD015A, which returned 0.8m at 1.2g/t gold from 398.8m while testing above and northwest of the deeper AMD014A intersection.
A second diamond rig continues to operate along strike of the Happy Valley deposit, with two diamond holes so far completed at Queen of the Hills and a third hole currently underway at Sheards, extending exploration coverage along the broader mineralised trend.
Advance expects assay results from these regional holes in early February as it continues to assess the scale and continuity of gold mineralisation across the Myrtleford project.
