Drilling at Great Western Exploration’s (ASX: GTE) Yandal West project in Western Australia’s mid-west has uncovered a shallow greenfields gold system of sizeable widths.
News of the discovery triggered a 55% share price surge, with the price spiking at A$0.031 in early morning trade.
Better intersects from the drilling campaign were 24m grading 1.51 grams per tonne gold, including 4m at 5.68g/t gold, and 20m grading 1.63g/t gold with a 4m gold interval grading 6.19g/t.
According to Great Western Exploration, gold mineralisation was intersected over 2km and remains open.
“These results are very exciting in what is only the first phase of our maiden drill program,” Great Western Exploration managing director Jordan Luckett said.
“The potential for a large-scale gold system is clearly evident and we look forward to commencing the next phase of the program.”
Mr Luckett added the company had developed further exploration targets from the first phase of the drilling program.
Yandal West is in proximity to the previously operated Bronzewing gold mine. Echo Resources (ASX: EAR) now owns the mine, which it acquired through a takeover of Metaliko in January this year.
However, the mine’s former owner Navigator Resources (ASX: NAV) ran into trouble and the mine was placed on care and maintenance in 2013, after Navigator collapsed.
Echo is currently investigating the feasibility of recommissioning the Bronzewing processing up and feeding ore from several primary nearby targets. Echo released an updated reserve of 15.6 million tonnes grading 1.7g/t for 856,000 ounces of contained gold for the Bronzewing processing hub. Echo’s estimated life of mine revenue is estimated at A$602 million from stage one development.
Another nearby operation is Northern Star’s (ASX: NST) Jundee gold mine which produced 233,556 ounces of gold in the 2016-2017 financial year.
Great Western’s Yandal West comprises the amalgamated Ives Find and Harris Find gold projects, which the company acquired in 2016.
According to Great Western, small scale drilling at Ives Find returned mineralisation with similarities to Bronzewing and Jundee including better intercepts grading 14m grading 11.42g/t gold and 2m grading 11.25g/t gold.
By early afternoon trade, Great Western’s stock had soared more than 40% to A$0.027.