Draig Resources (ASX: DRG) has made a significant new high-grade gold discovery at its flagship Bellevue gold project in Western Australia.
The gold explorer today reported that visible gold has been identified in all five drill holes targeting a “gap” extension of the historic Bellevue underground mine workings.
This is the company’s second significant find at the project, only six months after making its initial Tribune Lode discovery just 250m away.
Three of the five drill holes were re-entries of previously drilled Tribune Lode holes and two new holes were drilled from surface.
Drill results have confirmed high-grade gold mineralisation continuing over a strike length of 800m. This is already larger than Tribune Lode, which has a 550m strike length at surface.
Drilling highlights include a 2.5m intersection in the first hole grading at 13.1 grams per tonne of gold, and 0.3m in another, grading at 35.9g/t gold.
Another hole encountered high grade gold in two intersections – 3.4m at 10.4g/t gold and 0.3m at 44.4g/t gold.
In addition, Draig reported follow-up downhole electromagnetic surveying has confirmed three substantial off-hole conductors within the shear zone.
Draig executive director Steve Parsons said the company sees significant potential to extend the discovery with a step-out and infill diamond drilling program, which is currently underway.
“To consistently hit, in all holes drilled, this new mineralised shear zone and grades encountered over step-out drilling greater than 250 metres apart is extremely encouraging and points to the high quality of the mineralised lode system at the Bellevue gold project,” he said.
Maiden resource estimate
The Bellevue project hosts the historic Bellevue mine, which produced more than 80,000 ounces of gold at an average grade of 15g/t during its more than 100 years of operation. The mine was shut down in 1997.
Draig told the market today that significant progress had been made on the independent maiden resource estimate for the Bellevue project, which is expected to be released in the “coming weeks”.
Results from the current infill drill campaign on the new lode discovery will also be announced “at first opportunity” this quarter.
In addition, a reverse circulation drilling program has commenced at the Tribune Lode to cover shallow oxidised/broken zone mineralisation at the deposit which was poorly tested by diamond drilling. This program is on schedule for completion before the end of the month with results due in August.
Draig shares rose 1.08% to A$0.187 on the discovery news by early afternoon trade.