Reverse circulation drilling by Gateway Mining (ASX: GML) at its Gidgee project in Western Australia has revealed a new gold target located between its two most advanced deposits.
Wide-spaced drilling at the new target has hit 10m at 9.2 grams per tonne gold and 15m at 3g/t gold.
Gateway’s managing director Peter Langworthy said the quality of these intersections in grade and thickness “provide a clear demonstration that we are working on a very significant gold system”.
It has been a year of progress for Gateway, which came to the ASX in 1993 and has been toiling — intermittently at times — at Gidgee for more than 20 years.
The junior was initially backed by Singaporean investors.
Now, under different management and with a quite different looking share register, the company has been making progress.
Well-funded for drilling programs
In July, Gateway raised $7 million to finance ongoing work at Gidgee.
That month, too, it increased its Gidgee footprint in a deal with Golden Mile Resources (ASX: G88).
It farmed into the Golden Mile ground, adding 400 square kilometres and thus expanded the Gidgee project to more than 1,000sq km.
Now the company has been drilling between the “cornerstone” Whistler and Montague deposits, each with a resource of 120,000oz of contained gold.
The program has identified a new discovery at what is called the Lower Zone.
One hole intersected two gold zones, 15m at 3g/t from 104m down hole and a second of 10m at 9.2g/t from 140m.
Another hole unearthed 10m at 2.5g/t.
The thick intercepts above come from two holes 150m apart, which Mr Langworthy says “shows the size of the structures we are dealing with”.
“There’s still plenty of scope to drill out significant zones of mineralisation between and around these intercepts.”
Discovery area never before seen RC drilling
This area had not previously never been tested by RC drilling.
Gateway says that, importantly, the newly defined structures remain open in all directions, “opening up an exciting new exploration target for the company”.
Meanwhile, at the Montague Lodes, which are interpreted as the northern extension of the known 120,000oz resource, a “lower zone” has returned several gold intercepts.
These include 8m at 3g/t, 6m at 6.1g/t and 6m at 6g/t.
Mr Langworthy said the company now has a strike length up to 2km long, including the Whistler and Montague resources.
The RC rig is still on site and is completing an in-fill program, and it will also complete extra holes at the “lower zone”.