Resources and Energy Group (ASX: REZ) has found a new high-grade gold zone at its East Menzies project in Western Australia with a peak result of 1m at 76.4 grams per tonne, declaring it a significant find of economic mineralisation.
The zone has been located by a round of drilling at the Gigante Grande prospect, which was testing the previously reported gold anomaly covering 2.5km by 400m.
The company said the discovery of high-grade gold mineralisation has the potential to lead to a new economic deposit — and one that is located less than 130km north of Kalgoorlie.
Resources and Energy executive director Richard Poole described the 1m section assaying at 76.4g/t as “amazing”, given it was the first follow up of reverse circulation drilling holes.
Most overlooked exploration target area
Mr Poole said the results support the overwhelming evidence that the East Menzies goldfield is “one of Australia’s best and most overlooked exploration target areas”.
“Given its huge historical yield and rich history of gold production and discoveries, with over 400 old workings, we are very excited,” he added.
The project covers 100sq km of contiguous mining, exploration and prospecting licences, which are located within an orogenic lode gold province.
The company’s present focus is exploring the eastern side of the project area.
Results have been received from only five of the 32 holes drilled and “significant” intervals of gold mineralisation have been found in two of them.
A 66m-long mineralised zone was hit in hole 12, from 71m to 137m down hole, with 20m from 116m assaying at 5.06g/t gold; the 1m at 76.4g/t was intersected at 134m.
Low grades ranging from 0.1g/t to 0.6g/t gold have been found throughout the 66m zone.
Gigante Grande may host “very large” gold system
Hole 2, 490m northwest, returned a 19m mineralised interval including 8m at 3.02g/t gold with a peak assay of 1m at 13g/t.
The interval is within a broader 24m-thick zone of mineralisation.
“There is potential for this zone continuing further north along the east side of the project area,” the company said.
“These drilling results give added weight to the prospect that Gigante Grande hosts a very large mineralised gold system.”
Queensland precious metals asset
Resources and Energy also has a precious metals play in Queensland.
It has a 12sq km mining licence over the Mount Mackenzie mineral resource and holds a further 15sq km under an exploration permit.
The current resource has been estimated at 3.42 million tonnes at 1.18g/t gold and 9g/t silver for a total of 129,000 ounces of gold and 862,000oz silver.