Auric Mining (ASX: AWJ) has generated what it describes as additional “spectacular” results from drilling at its Munda gold project after hitting a 1m interval grading 137.4 grams per tonne gold outside of the known resource area.
The company has completed a 27-hole reverse circulation drilling program totalling 3,664m at Munda.
Assays have now been received from a further seven holes.
Auric technical director John Utley said the 1m at 137.4g/t interval was “one of the best intercepts” ever returned at the project.
The 137.4g/t gold was found within a wider 13m intersection grading 14.62g/t gold.
Auric noted this hole was in a gap area of the resource model and will be added to the estimate.
Mr Utley said the mineralisation style appeared amenable to open pit mining.
“The task now is the convert the current resources from inferred to indicated or measured and to expand resources where the latest drilling demonstrates that potential.”
Progressing Munda gold project
Current resources at Munda total 3.77Mt at 1.43g/t gold for 173,300 contained ounces.
The project is covered by a mining lease and two other miscellaneous licence applications. It is about 35km southwest of Kambalda.
Auric acquired Munda in September last year and it makes up the company’s three WA gold projects in the goldfields region.
Munda has undergone several phases of exploration since the 1960s with the former Western Mining Corporation taking on the bulk of the work.
Auric managing director Mark English said that shortly after acquiring Munda, the company realised the resource could be “substantially upgraded.”
“This was achieved quickly, which created a significant uplift in value for our shareholders.”
“The drilling program started the day after we listed on the ASX.”
Mr English added the company was “excited” by the results it had received to date from Munda.
“[We] are looking forward to the opportunity these results present to us to expand the resources.”
“Whilst there is a lot of work still to be done, we are hopeful we can add to our resources relatively quickly.”
Out the recently completed 27-hole program, assays have now been received for 14 holes with the remaining 13 pending.