Draig Resources (ASX: DRG) has intersected more shallow high-grade gold at its Tribune Lode prospect at the company’s Bellevue gold project in Western Australia.
A 5m intersection returned 16.5 grams per tonne gold from 21m, with a 3m interval grading 26.6g/t gold.
This latest drill hole is 80m south of a previously reported intersection which returned 5m grading 37.5g/t gold.
“We are extremely excited with this drill result as we continue step-out drilling to confirm strike extensions of the high-grade lode at the Tribune discovery,” Draig executive director Steve Parsons said.
Mr Parsons said the coarse mineralisation had the potential to contain “high-grade Bellevue-style ore shoots”, which could host a “significant” orebody.
“Mineralisation is open in all directions and the company is now focussed on stepping outwards and below the recent drill hits,” Mr Parsons added.
He said the company would provide updates as drilling progressed.
The historic Bellevue mine operated for more than 100 years before being shut down in 1997.
Mineralisation uncovered at Tribune has been likened to the Bellevue load which produced 800,000 ounces of gold at an average 15g/t grade.
Draig’s drilling program is targeting underground and open pit mineralisation with exploration at Tribune accelerated and funded by the company’s recent A$5 million capital raising.
Bellevue has access to sealed roads, water, grid power and flights and other services due to its proximity to nearby towns Leinster, Leonora and Wiluna.
Earlier this month, Draig extended its ground in the area after securing an option to acquire the 557-square kilometre Yandal South project from Croft Mining and Weebo Exploration.
Yandal South is 40km from Bellevue, which enables easier exploration and potential development to complement Bellevue.
Draig has 45 days to undertake due diligence at Yandal South which is also near to Echo Resources’ Bronzewing project and processing facility and Red 5’s gold asset.
Despite the positive drill results, Draig’s share price slumped more than 8% in early morning trade to sit at A$0.22.