New Murchison Gold unveils strong mineralisation with diamond drilling at Crown Prince
New Murchison Gold (ASX: NMG) has announced impressive results from diamond drilling activities at the Crown Prince gold project within its Garden Gully gold project near Meekatharra in Western Australia.
The company has intersected visible gold in what it says is the deepest example of gold mineralisation at the south-eastern zone of the Crown Prince gold deposit.
Notably, the target is outside the current mineral resource estimate (MRE) envelope, with a highlight hole drilled into a strong zone of alteration and shearing.
Highly encouraging
Chief executive officer Alex Passmore said that, while the company doesn’t expect the assay results for a few more weeks, it considers the visual indications from the hole highly encouraging.
“While we caution that assays are awaited from diamond hole NGGRCDD974, we are pleased to report the strong visual indications of mineralisation in a key extensional area for the Crown Prince resource,” Mr Passmore said.
New Murchison reported promising results in early February for a feasibility study into a Crown Prince development, which identified pre-tax cash flow of $226 million over a period of 30 months at current spot gold prices.
Westgold ore sales
The study also highlighted a low capital expenditure budget of $5.4m, which the company would need to fulfil its recent ore purchase agreement with Westgold Resources (ASX: WGX).
New Murchison is also investigating the potential to utilise its substantial tax loss position to offset liabilities on initial pre-tax profits from Crown Prince.
The company plans to mine 140,000 contained ounces of gold, which will be trucked to Westgold’s Bluebird Mill south of Meekatharra.
Updated MRE
New Murchison has recently unveiled an updated MRE for Crown Prince of 2.205 million tonnes at 3.9 grams per tonne for 279,000 ounces of gold.
The company expects to commence mining at the site in June 2025, with first ore sales scheduled for August 2025.
Crown Prince is the most advanced deposit at the Garden Gully gold project, which comprises a tenure package of 677 square kilometres covering the Abbotts Greenstone Belt and other key regional structures.