Spectrum Metals (ASX: SPX) has unearthed high-grade gold extensions at its Penny North prospect, with preliminary metallurgical test work producing “exceptional results”.
Penny North is part of Spectrum’s wholly-owned Penny West project in Western Australia, which, according to Spectrum, hosts one of the highest grade open pits ever mined in the state with an average grade of 21.8 grams per tonne gold extracted in the early 1990s.
In this latest phase two drilling program at Penny North, Spectrum uncovered 5m at 13.3g/t gold from 202m; 7m at 4.9g/t gold from 225m, including 1m at 24g/t gold from 231m and 3m at 15g/t gold from 239m.
The highest-grade interval was 1m at 26g/t gold from 149m.
According to Spectrum the gold system through Penny West and Penny North runs 650m along strike and extends to a depth of 230m, with mineralisation remaining open in all directions.
As well as drilling, Spectrum has routinely been panning the reverse circulation rock chips and has noted “large numbers of coarse nuggets” and fine gold grains.
These were found in the deepest hole drilled at Penny North and at least four of the drill holes which have assay results pending.
Further drilling will involve infill holes under the Penny West pit, while at Penny North, Spectrum plans to target mineralisation in a northerly direction.
Meanwhile, metallurgical test work on samples from the drilling program resulted in total gold recoveries of 99.2% using a conventional flowsheet.
Additionally, gravity recoverable gold was up to 76.9% in initial test work.
Spectrum acquired Penny West late last year from a private owner, which has held the asset since 2012, and kicked off exploration in early 2019.
The project is about 25km south of the Youanmi mining centre in central WA.
Eastmet mined the Penny West open pit from 1991-1992 and produced 85,000 ounces of gold.
Spectrum’s share price had lifted 4.17% by mid-morning to trade at $0.025.