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Cygnus Gold (ASX:CY5) begins drilling at Lake Grace and Yandina JV projects

Mining
ASX:CY5      MCAP $23.32M
05 June 2020 14:00 (AEST)

Cygnus Gold (CY5) has commenced drilling at the Lake Grace and Yandina projects, which are held in a joint venture (JV) with Gold Road Resources (GOR).

These projects cover an area of more than 2000 square kilometres and are located in the Wheatbelt region of Western Australia.

The drilling program will comprise approximately 7320 metres of air core (AC) drilling, 950 metres of reverse circulation (RC) drilling and 400 metres of diamond core drilling.

The program will target gold mineralisation on three prospects identified in close proximity to the Hammerhead prospect.

Hammerhead is part of an approximate 20 kilometre-long, prospective greenstone rock package where the JV is targeting gold mineralisation associated with the Yandina Shear. This shear zone is a large-scale structure interpreted to control the distribution of gold mineralisation.

Drilling at Hammerhead has previously identified more than eight discrete prospects. The current program is designed to test for depth and areal extensions of the highest priority Gunsmoke, Lakeside and Hammerhead Prospects.

Previous significant results include 3 metres at 0.24g/t gold from surface and 2 metres at 0.15g/t gold from 32 metres at Hammerhead,  12 metres at 0.78g/t gold from 30 metres including 8 metres at 1.06g/t gold from 30 metres at Gunsmoke, and 6 metres at 0.59g/t gold from 49 metres at Lakeside.

The upcoming program also includes up to 1900 metres of AC drilling at the Hideaway prospect on the Lake Grace JV. This prospect is located roughly 50 kilometres to the northwest of Hammerhead.

Hideaway is a large historical gold-in-soils anomaly coincident with a 1.1 kilometre-long mafic-felsic granulite contact. Limited, shallow drilling at Hideaway has returned results of 11 metres at 1.3 g/t gold from 7 metres and 1 metre at 1.0 g/t gold from 31 metres and 1 metre at 0.83 g/t gold from 37 metres.

This drilling program is expected to be completed in July.

Cygnus Gold is up 5.66 per cent with shares trading for 5.6 cents each at 12:13 pm AEST.

Gold Road’s shares however have dipped 3.12 per cent in the red to trade for $1.56 each in a $1.411 billion market cap.

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