Resolution Minerals restarts drilling for gold at 64North in Alaska
New Canadian-based resources merchant bank Palisades Goldcorp is leading the $3.6 million placement in Resolution Minerals.
Resolution Minerals (ASX: RML) has begun drilling the central zone at its Aurora project close to the world-class Pogo gold mine in Alaska.
Two follow-up diamond core drill holes of 1,100m will take three weeks to complete.
This drilling will target the extensions of the shallow-dipping “Pogo-style” 7m-thick quartz vein intersected by an earlier drill hole, known as hole #7.
The 64North project surrounds the Pogo mine, owned by Northern Star Resources (ASX: NST) which has so far produced four million ounces of gold at an average grade of 13.6 grams per tonne. Pogo has a total endowment of 10Moz of gold and is currently producing at a rate of 300,000oz per annum.
Resolution’s new drilling will test the lateral potential of the quartz vein.
Much drilling needed on complex veins
According to Resolution, Pogo-style veins have large variations in grade and thickness over short distances, thus it is regarded as essential to drill step-out holes up-dip, down-dip and/or along strike.
This allows the team to determine grade variation and lateral extent of the vein.
In Northern Star’s case, early drilling on what turned out to be main vein saw only one in three holes intersect high-grade gold mineralisation.
“The company firmly believes further drilling in the central zone of the Aurora project is highly warranted,” Resolution stated.
Managing director Duncan Chessell said further drilling from the pad used for hole #7 and nearby will test the long-strike and up-dip continuity.
Assays from the two new holes will be fast-tracked in the case of the high priority zones.
Assays from summer field work out this month
Meanwhile, regional field work programs have been concluded for the summer field season.
Samples from this work have been submitted for analysis and results will be announced this month.
However, work at the E1 prospect continues on 4m by 200m trenches to allow identification of potential drilling targets.
This work will be finished early this month and assays will be released in December.
During the September quarter, Resolution raised $5.1 million through a share placement and a share purchase plan.
The company now has the funds to complete its first year earn-in requirement of US$5m (A$7.13 million) to lock in a 30% stake in the project.