In a region traditionally known for farming, Cygnus Gold (ASX: CY5) has hit high grade gold in first four diamond core drill holes at its wholly-owned Stanley project in Western Australia’s wheatbelt, with one hole offering up to 114.63 grams per tonne gold.
The gold was discovered at the Bottleneck prospect with the first hole intersecting 9.50m grading 29.20g/t gold from 36.70m, with a 2.4m interval containing the whopping 114.63g/t gold from 38.70m.
Another intersection included 10.95m grading 15.10g/t gold from 24.70m, with a 4.75m interval comprising 34.17g/t gold from 24.70m.
According to the company, these are the first core holes drilled at the project, with each drill hole intersecting gold and helping Cygnus better-understand the structures.
“The results from the drilling at Bottleneck are outstanding and confirm not only the known high-grade mineralisation in the weathered rock, but also the potential for gold mineralisation in fresh rock,” Cygnus managing director James Merrillees said.
Mr Merrillees added the company was “eagerly” looking forward to the results from the final two holes of the program.
Once its has all the initial drill results, further drilling will be planned.
Cygnus debuted on the ASX a little more than a month ago to raise A$5 million to fund its exploration plans across its projects in the “underexplored” wheatbelt. Investors snapped up the stock, with Cygnus raising an extra A$1 million more than initially planned, giving the company A$6 million before costs.
The company claims WA’s wheatbelt is geologically similar to Kalgoorlie’s goldfield and the Murchison districts, both also in WA and host to multiple gold operations and explorer over the last 100 years.
Cygnus has pegged up ground throughout the region from Bencubbin in the wheatbelt’s north to Frankland further south, with all granted tenements and tenement applications totalling 5,000 square kilometres.
As it explores unchartered territory, Stanley was the first target and comprises a granted exploration licence across 161sq km. Cygnus has identified 20km of strike for exploration.
Shares in Cygnus rocketed on today’s results, with the company’s share price ending the day up more than 32% at A$0.37.