Spectrum Metals (ASX: SPX) has uncovered up to 103 grams per tonne gold while drilling below the Penny West open pit about 25km from the Youanmi mining centre in Western Australia.
Assays have been received from eight holes drilled beneath the pit with the southern-most hole discovering a new zone of high-grade mineralisation.
Notable intersections were 31m at 5.5g/t gold from 203m, including 1m at 103g/t gold from 203m, and 5m at 28.9g/t gold from 203m.
“This is another incredible intersection for Spectrum and, once again, clearly demonstrates the capacity of the Penny West gold system to deliver significant gold mineralisation,” Spectrum managing director Paul Adams said.
“Hole SPWRC006 is the deepest hole on the southern-most line drilled into the Penny West lode in our program and was designed to discover depth extensions to the known mineralisation.”
“This intersection could open up a new exploration front under and south of the Penny West pit,” Mr Adams added.
Targets at Penny West
The hole was drilled about 500m south of the Penny North discovery, with assays pending for other targets including Magenta (three holes), Penny West (three holes), and Penny North (12 holes).
Less than a month ago, Spectrum unearthed high-grade mineralisation at the Penny North target with intersections comprising 14m at 14.4g/t gold and 4.11g/t silver, including 8m at 23.3g/t gold and 6.89g/t silver from 128m.
Only last week, Spectrum reported its highest-grade gold assays to-date at Penny North of 4m at 105.2g/t gold from 151m, including 1m at 292.8g/t gold from 153m.
Penny West was mined for two years in 1991 and 1992 and produced 85,000 ounces of gold at an average grade of 21.8g/t gold.
The Penny West gold project is proving a boon for Spectrum since the project was acquired in December last year.
Prior to Spectrum’s ownership, the project had been owned privately since 2012, but prior to that the asset formed part of the Youanmi gold project until 2012.
This news of the discovery sent Spectrum’s share price up 7.41% to $0.029 in early morning trade.