Genesis Minerals (ASX: GMD) has discovered a potential new gold zone at its wholly-owned Ulysses gold project after it hit 74 grams per tonne gold during drilling about 300m from the existing resource.
The high-grade gold hit was in a 1m interval at a 183m depth and Genesis claims the coarse, nuggety gold mineralisation is a different style to the Ulysses resource which sits at 3.3 million tonnes grading 3 grams per tonne gold for 321,000 contained ounces.
“The intersection of ‘blind’, nuggetty high-grade gold mineralisation outside of the current resource extension area and well into the hanging wall of the Ulysses shear is an exciting development,” Genesis managing director Michael Fowler said.
“While it is too early to know the full significance of this intersection and how extensive it may be, it is highly promising to see a new style of mineralisation in a new area away from the main resource area,” Mr Fowler added.
This new style of coarse, nuggety gold mineralisation was found after the interval was panned and Genesis said it is different to the lode-style mineralisation of the current Ulysses resource.
Genesis is planning a “twin” diamond drill hole to gain a better understanding of the mineralisation and its orientation.
Ulysses gold resources
Meanwhile, infill drilling at the primary Ulysses resource has continued to produce high-grade gold intersections, with a resource upgrade pencilled in for early in the December quarter.
Better intersection from the latest infill drilling include 6.30m at 7.77g/t gold from 170; 1.95m at 14.79g/t gold from 168.78m; and 12m at 4.75g/t gold from 127m, with a 7m interval containing 7.21g/t gold.
Mr Fowler said the latest results show the potential to grow the Ulysses further.
“Importantly, infill drilling within the inferred part of the current mineral resource beneath the Ulysses pit has confirmed extensive, continuous high-grade gold mineralisation.”
The deep high-grade gold shoots that have been identified at Ulysses to-date remain open at depth.
Mr Fowler added the company’s strategy was to define more resources by drilling these shoots at depth to shore up a “significant” new stand-alone mining operation.
Both extensional and infill drilling at Ulysses are continuing.
Investors reacted favourably to this morning’s news, with Genesis’ share price up 6.52% to A$0.049 by early afternoon trade.