Draig Resources bolsters land position near Bellevue gold project in goldfields

Draig Resources ASX DRG new tenements near Bellevue gold project
Draig’s Bellevue project and new tenements have access to haul roads and other infrastructure.

Draig Resources (ASX: DRG) has bolstered its land position to more than 4,500 square kilometres close to its flagship Bellevue gold project in Western Australia’s goldfields.

The new 2,000sq km tenements comprise the North Jundee, South Yandal and Fisher West projects which are prospective for gold and base metals.

“The company is pleased to significantly increase our land holding in a well-endowed mining district that is host to major gold and base metal operations,” Draig executive director Steve Parsons said.

“Draig now has a large presence in a highly prospective and under explored region of the north eastern goldfields region of Western Australia,” he added.

As well as the land holding’s proximity to Draig’s Bellevue project, the tenements are also near to other advanced projects and mines in the region including Northern Star’s (ASX: NST) Jundee, Echo Resources’ (ASX: EAR) Bronzewing, Red5’s (ASX: RED) Darlot and Saracens’ (ASX: SAR) Thunderbox asset.

Mr Parsons said Draig’s geological team was already working on preliminary targets, with exploration on the ground to begin in the latter half of the year.

“As we work up these new target areas the company continues to advance its core asset, the high-grade gold Bellevue gold project and is on track to deliver a maiden resource estimate in quarter three 2018,” he said.

Bellevue gold project

Draig’s Bellevue project hosts the historic Bellevue mine which produced more than 80,000 ounces of gold at an average grade of 15 grams per tonne while operating.

The company recently discovered the Tribune lode which hosts similar mineralisation to the historic mine.

Drilling to-date at Tribune has returned numerous mineralised intersections including 2.5m grading 29g/t gold, 5m grading 22.9g/t gold, 7m grading 27.4g/t gold and 15m grading 5.8g/t gold.

Draig has identified gold mineralisation extends over 550m of strike and is open to the south in the direction of the Southern Belle lode.

Additionally, drilling has uncovered mineralisation 350m below surface.

A maiden resource for the project is due for release in the September quarter and Draig plans to undertake step-out drilling to test the area between Tribune and Southern Belle lodes.

Join Small Caps News

Get notified of the latest news, events and stock alerts