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Golden Mile Resources (ASX:G88) slips on WA drilling results

Mining
ASX:G88      MCAP $4.112M
12 January 2021 17:00 (AEST)
Golden Mile Resources (ASX:G88) - Managing Director, James Merrillees

Source: Resources Roadhouse

Shares in Golden Mile Resources (G88) have slipped today despite the company releasing some of its latest drilling results from Leonora in Western Australia.

The results come from aircore drilling along the Benalla Gold Trend in the company’s wider Leonora Gold Project.

According to Golden Mile, the Benalla drilling targets sit on the same structural trend as Kin Mining’s (KIN) Cardinia Mining Centre. Moreover, Golden Mile said the recent drilling encountered geology like that described at Cardinia.

Specifically, the drilling returned hits including a four-metre intersection grading 3.15 grams per tonne of gold from 12 metres from one hole and a 16-metre intersection grading 0.81 grams per tonne of gold from 16 metres from another. The latter included a four-metre zone of 1.56 grams per tonne of gold from 20 metres.

Golden Mile Managing Director James Merrillees said the company has had a strong start to 2021, with more drilling planned throughout the rest of the first quarter.

“These are exciting early-stage results at Benalla given the size, widths, and tenor of the intersections and location with respect to KIN’s Cardinia Project and support deeper drilling as well as the testing of additional high potential targets,” James said.

He said the company has “barely scratched the surface” of its landholding in WA, with Benalla part of a highly prospective but historically under-explored part of the Eastern Goldfields.

“With our modest market capitalisation, strong technical team, and a track record of spending money in the ground on our best targets, Gold Mile provides investors with exceptional leverage to further drilling success,” he said.

Today’s drilling results follow on from first-phase drilling results announced in October 2020.

Golden Mile said it has more aircore drilling planned for remaining untested targets in the Benalla region and to extend lines where mineralisation remains open.

On top of this, the company is planning reverse circulation (RC) drilling to test some of the identified mineralised structures in the area.

Nevertheless, it seems investors were hoping for more from the recent drilling results; shares in Golden Mile are 7.02 per cent lower at 12:27 pm AEDT and trading at 5.3 cents each.

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