Resources & Energy Group finds large gold trend at East Menzies

Resources Energy ASX REZ East Menzies
Drilling at Resources & Energy Group’s WA gold project has identified a significant gold trend over 1.1sq km.

A maiden drilling campaign by Resources & Energy Group (ASX: REZ) at the East Menzies gold project in Western Australia has confirmed the presence of a significant gold trend covering over 2,500m of strike and up to 450m wide.

Regional assays showed a 100 parts-per-billion gold anomaly at the company’s Demeter prospect, highlighting the trend over 1.1sq km and confirming it open to the north and south.

Drilling to an average depth of 47m at Demeter confirmed the anomaly extended from the adjacent Kore prospect. The mineralised envelope has a peak bottom-of-hole gold assay of 531ppb.

Demeter is located proximal to the regional-scale Moriarty shear zone, which bounds the eastern contact of the Menzies greenstone belt.

Gold mineralisation is believed to be hosted within dilatant quartz vein arrays within, and near, the margins of granitoid intrusive bodies.

High-grade results

Resources & Energy Group said 40ppb gold anomalism had historically been a strong indicator for economic gold grades at the East Menzies project, particularly when combined with historical high-grade results at Kore, which include 21m at 7.1 grams per tonne from 36m and 5m at 29.2g/t from 52m.

A number of fault offsets are apparent, indicating a series of north-west sinistral faults separating the Kore and Demeter anomalies.

A third area of anomalous gold mineralisation – known as the Rhea prospect and located about 300m south of Demeter – appears to also be offset from the mineralised package.

Rhea is yet to be drill tested and will be prioritised when regional drilling recommences in coming weeks.

Next steps

Further investigative work has been planned on the recent drill cuttings, including re-logging and panning selective intervals within the 100ppb anomaly for very fine pyrite, which may have been initially overlooked.

Resources & Energy Group said it will prioritise an extension to its drill coverage to ascertain the northern boundaries of the gold anomalism.

It will also prioritise Rhea as the next target to test when drilling recommences.

At midday, shares in Resources & Energy Group were trading 25% higher at $0.015.

Join Small Caps News

Get notified of the latest news, events and stock alerts