- Alliance Resources (AGS) has received significant gold results from reverse circulation drilling at the Weednanna gold deposit in South Australia
- 41 holes for over 5000 metres were completed at various shoots to infill gold mineralisation and increase geological confidence
- A number of holes returned high-grade gold with grades of up to 23 grams per tonne and 72 grams per tonne of gold
- Importantly, Alliance discovered a new, high-grade gold shoot below the north end of Shoot 2
- Alliance will use the data to support an updated mineral resource estimate next month
- Company shares closed a healthy 33.3 per cent in the green to trade for 24 cents
Alliance Resources (AGS) has received positive assay results for its latest phase of reverse circulation drilling at the Weednanna gold deposit in South Australia.
The gold explorer completed 41 holes, for 5033 metres, at Shoots 2, 5E, 9 and 10 to infill gold mineralisation and increase the geological confidence in the central part of the deposit.
Additionally, Alliance hopes to use the data to upgrade gold resources from the Inferred category to the Indicated and Measured categories.
One hole was drilled at Shoot 9 to test a gap between significant gold intersections which previously wasn’t successfully drilled.
The latest drilling returned a broad gold intersection of 39 metres at 3.5g/t gold from 99 metres including 25 metres at 4.7g/t gold from 102 metres.
A total of 22 holes were drilled at Shoot 10. It continued to define near-surface gold with significant intersections including seven metres at 1.8g/t gold from 16 metres and eight metres at 2.6g/t gold from 20 metres.
Shoot 5E occurs within weathered rock and is generally lower grade however it returned significant gold results. These include four metes at 5.1g/t gold from 53 metres, four metres at 1.4 g/t gold from 78 metres and three metres at 2.8g/t gold from 58 metres.
In Shoot 2, 18 holes were drilled to upgrade the underground areas from the Inferred to Indicated category by ensuring the intersection points are no greater than 25 metres by 20 metres apart.
Shoot 2 returned nine metres at 15.3g/t gold from 67 metres including six metres at 20.6g/t gold from 69 metres including one metre at 72g/t gold from 69 metres, and seven metres at 8.1g/t gold from 85 metres including four metres at 12.6g/t gold from 86 metres.
Significant new gold shoot intersections include eight metres at 20.1g/t gold from 185 metres including two metres at 72.7g/t gold from 186 metres and seven metres at 3.3g/t gold from 191 metres including two metres at 8.6g/t gold from 191 metres.
Metallurgical studies on gold mineralisation from the shoots at Weednanna are almost complete. These will be used to design and optimise a mineral processing flowsheet.
Alliance is reanalysing gold samples for iron ore to support an updated iron ore mineral resource estimate.
The iron ore and gold mineral resource estimates for Weednanna are expected to be completed next month.
Company shares closed a healthy 33.3 per cent in the green to trade for 24 cents each at market close.