Meteoric Resources (ASX: MEI) has begun its much-anticipated drilling program at the Palm Springs gold project, which it acquired in June.
A diamond drill rig is currently working at the high-priority Butchers Creek historical mine, with a reverse circulation rig mobilising to site next week.
This initial campaign will target shallow high-grade zones under the historic pit as well as to the pit’s south.
Previous drilling below the pit has unearthed 68m at 2.5 grams per tonne gold from 44m, 19m at 8.8g/t gold from 56m, and 50m at 3.31g/t gold from 50m.
Notable intercepts along strike south of the open pit were 73m at 2.3g/t gold, and 36m at 2.5g/t gold.
The current program will comprise 23 holes for 5,000 of RC drilling and 1,500m of diamond drilling.
Meteoric managing director Dr Andrew Tunks said the company had only made a decision to acquire an Australian gold project in March to work alongside its flagship Juruena gold asset in Brazil.
“I am particularly excited to say that since that time we have conducted extensive reviews, located and acquired an exciting past producer with both immediate drill targets and considerable blue sky.”
“Now the best part – the drilling – commences.”
Dr Tunks added that given historic data, the company was “confident” to deliver “excellent assay results” from October as the program advances.
Concurrent to drilling, Meteoric is compiling geochemical data across the project, which will assist with firming up regional targets.
Meteoric noted that results from this stage one drilling program will then go through structural and geochemical analysis to identify stage two regional drilling.
In readiness for regional drilling, Meteoric has already secured program of works approvals.
Palm Springs gold project
When announcing the acquisition in June, Dr Tunks told Small Caps he was “very bullish” on the project’s prospects.
Palm Springs is 30km from Halls Creek in Western Australia’s Kimberley.
The historic Butchers Creek open pit produced 52,000oz of gold at 2.1g/t before operations ceased in the late 1990s due to a low gold price.
Palm Springs covers 12,500ha and hosts more than 60 known gold occurrences outside of Butchers Creek.
The asset includes three mining licences, four exploration and seven prospecting leases.
Of note, Dr Tunks pointed out when Northern Star Resources (ASX: NST) was a junior explorer with a market cap of around $10 million “its first ever resource” was estimated at the Golden Crown and Faugh-A-Ballagh prospects, which are about 4km north-east of Butchers Creek within Palm Springs.
The prospects host a historic resource of 23,000t at 3.2g/t gold for 28,000oz.