Eastern Metals plans next exploration phase at Cobar after high-grade gold hits

Eastern Metals (ASX: EMS) is preparing to step up exploration work at its Cobar project in New South Wales after reconnaissance drilling identified significant potential in a pilot program at newly-identified high-priority targets Kelpie Hill and Windmill Dam.

Highlights from the assay results from the three Kelpie Hill holes include an intercept of 7.0 metres at an average grade of 4.3 grams per tonne gold including 1.0m at 8.56g/t gold.

Base metal results were also returned from the other two holes, including deeper base metal zones in the primary sulphide zone.

IP survey planned

The final results from the shallow drill tests will now be incorporated into the planning of an induced polarisation (IP) survey, the next exploration stage due to commence in the coming weeks.

Assay results from drilling at Windmill Dam and Evergreen are still pending.

The combined results will help define and prioritise targets for future drill testing.

Unexpected gold hits

Chief executive officer Ley Kingdom said the early gold hits were unexpected.

“While the high-grade gold zone intersected in the first hole was somewhat of a surprise, given that this was primarily a base metals target, intersecting significant mineralisation is an exciting development for any exploration team,” he said.

“While we are still in the process of evaluating the results and working out the geological context and significance of what we have seen in the first three holes at Kelpie Hill, the key takeaway for investors is that this is a highly complex, mineralised system which offers enormous discovery potential, particularly when considering how little drilling has been done.”

High-grade intercept

The high-grade gold intercept identified in hole KHRC001, which was extended to a total depth of 243m, will be followed up in future exploration work.

Oxidation of the target zone at Kelpie Hill extends to approximately 260m vertical depth, around 150m greater than at the Evergreen prospect located some 800m to the south-east.

Historical and current data show that the main mineralised trend – which is is open to both the north and south – has good continuity from south of Browns Reef through Evergreen, Kelpie Hill and other historical prospects to the north for approximately 6km.