Koonenberry Gold jumps +14% on strong response to its new Postman’s Gully drilling

Koonenberry Gold (ASX: KNB) was up more than +14% through Wednesday trading after a promising start in a new drilling program at the Postman’s Gully prospect in the Enmore project in New South Wales.

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The initial drill hole has intersected multiple breccia zones up to 12.5m downhole. Testing beneath historical workings, the breccias intersected contain disseminated pyrite, arsenopyrite and quartz-sericite alteration, which is geologically similar to previously identified high-grade rock chips.

This is the company’s first test of the highly prospective Borah fault, with approximately four drill holes planned. Drilling is targeting a robust 1.3km long gold in soil anomaly which returned up to 370 parts per billion (ppb), supported by a multi-element pathfinder anomalism.

Koonenberry is also investigating two NNE-SSE-oriented trends of historical workings at the contact in a similar structural and lithological setting to nearby Sunnyside.

The explorer’s managing director, Dan Power, said past reported chip sampling of historical workings at the Postman’s Gully target had returned up to 14.05 grams per tonne.

“Encouragingly, our first drill hole underneath the historical workings has intersected several zones of brecciation, veining, alteration and sulphide mineralisation which have very similar geological characteristics to the high-grade rock chips and we look forward to receiving initial assays,” he explained.

Outside of drilling activities, the company continues to advance several targets across the Enmore District. “We are conducting first pass geological reconnaissance and soil sampling along both the Borah Fault Zone at several locations, as well as the under-explored Sheba and Chandler fault zones, which form part of the approximately 30 km of prospective structures identified to date within the project.”

Mr Power continued: “In the near term, investors can expect results from our ongoing drilling and geochemical sampling at our Enmore project, including two holes from Sunnyside, which contained visible gold.

“At the Lachlan project, geophysical programs are being conducted to define targets for drill testing prior to mid-year,” the Koonenberry chief added.

Koonenberry is well funded for its upcoming exploration activities, with as much as $6.3 million in cash reported on December 31.

KNB is up +14.3% at 2.4cps toward Wednesday’s close.

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