Gold and base metals explorer Carawine Resources (ASX: CWX) saw its stock price more than double in early trade after it announced it had discovered two new high-grade gold lodes at the Hercules prospect within its Tropicana North project in Western Australia.
If enthusiasm for gold plays is fading, as has been reported, it appears no one has told Australian investors.
Three separate lodes hit in one hole
One hole drilled by Carawine in January at Hercules returned 37m at 5.58 grams per tonne gold.
This was across three lodes, beginning 84m down hole — 4m at 25.9g/t (the main lode), 3m at 22.2g/t from 101m, and 3m at 10.6g/t from 118m.
Carawine reported that additional gold intersections at other holes have extended the mineralisation along strike and at depth.
These include 3m at 15.2g/t, 3m at 15.4g/t, 5m at 10g/t and 5m at 13.1g/t.
Carawine’s Tropicana North project covers 80km of strike along the Tropicana Belt.
The company says the strike length contains extensions of the same and similar rock units and structures to those hosting the large Tropicana gold mine operated by AngloGold Ashanti (ASX: AGG) and IGO Limited (ASX: IGO).
Carawine’s project in the north eastern goldfields covers 1,800sq km – making it the second-largest tenement holder in the region behind AngloGold.
Hercules shaping up as ‘major’ gold deposit
Carawine managing director David Boyd said these initial results show the potential for Hercules to become established as a major new high-grade gold deposit “in what is shaping up as an exciting new gold project north of Tropicana”.
He said the drill results are “highly significant”.
“Multiple high-grade intersections have been returned which extend the existing mineralisation with improved grade continuity between drill holes, as well as uncovering additional parallel high-grade lodes,” Mr Boyd added.
A preliminary interpretation of the mineralisation shows multiple plunging zones which increase in strike length with depth.
Carawine noted that the mineralisation is typically associated with quartz sulphide veins.