Moho Resources (ASX: MOH) has uncovered a virgin gold and base metal discovery at the Empress Springs project in North Queensland following a maiden drill program.
Emerging from a trading halt today, the Perth-based company said the gold-silver-zinc-lead mineralisation was discovered in shallow basin sediments where there had been no previous drilling for gold and base metals.
The mineralisation discovery is the outcome of a November 2018 exploration campaign at Empress Springs which saw Moho undertake first-pass basement air core drilling over selected targets.
At the Arrowhead prospect, one of the discovery holes intersected 10m at 1.1 grams per tonne gold from 44m, including 2m at 2.1g/t gold, 2.5g/t silver, 0.26% zinc and 0.14% lead.
Anomalous gold mineralisation was also discovered at the Racetrack prospect, with drilling returning a 0.94g/t gold from 63-65m intersection.
Moho noted that the widespread and intense alteration in the basement observed in many of the drill holes was indicative of a large mineralised system.
Moho managing director Shane Sadleir said the drilling program had delivered an outstanding result.
“The results support the company’s view that we may be sitting on top of a significant gold/base metals mineralised system, perhaps similar to the 1.2Moz historic Goldfield at Croydon,” he said.
“To be able to generate such a significant mineral discovery undercover at such an early stage in our exploration program is a testament to the expertise and dedication of Moho’s exploration team.”
The gold and base metals discovery at Empress Springs follows on from the company’s ASX debut last November, which saw it raise $4.5 million to assist with exploration activities.
The Empress Springs project is located 25km to the south of the town of Croydon and comprises three adjacent tenements totalling 773 square kilometres.
The Croydon goldfield, which extends from the north of the town, contains more than 300 gold occurrences with historical production estimated at 1.2Moz of gold.
Under a 2016 farm-in joint venture with Independence Newsearch, Moho can earn a 51% interest in the three tenements by expending $1 million on exploration activities by 27 July 2019, with the option to increase its stake by an additional 19% thereafter.
Looking ahead, Moho’s next steps will entail a 2,000m reverse circulation drilling program to follow up the Arrowhead mineralisation and systematic reconnaissance drilling across the project area.
The company, which is chaired by Western Areas (ASX: WSA) co-founder Terry Streeter, will also look to identify potential new exploration targets in the first quarter of 2019.
Moho’s shares declined 3.8% to $0.125 in morning trade.