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Greenstone Resources (ASX:GSR) hits bonanza grade gold at Burbank

ASX News, Mining
ASX:GSR      MCAP $16.47M
01 December 2022 11:59 (AEST)

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Greenstone Resources (GSR) has recorded multiple high-grade gold intersections in the first round of drilling at its Burbank project in Western Australia.

Initial results from the company’s phase one drill campaign returned seven metres at 57.84 grams per tonne (g/t) gold from 90 metres downhole, which included one metre at 375 g/t gold.

Greenstone marked this result as a shallow “bonanza intercept”, which lies outside the current resource estimate.

Another drill hole returned three metres at 4.18 g/t gold from 17 metres downhole, including one metre at 10 g/t, also outside the current resource.

The company’s Managing Director and CEO, Chris Hansen, said the first results highlighted the potential to “significantly” increase the resource base at Burbanks over the coming months.

“We are highly encouraged by the first results from the phase one drill campaign at Burbanks, having returned multiple high-grade intercepts in the first holes drilled which are in line with the historical underground production grades,” Mr Hansen said.

This round of work is part of a three-phase drill campaign, with 10,000 metres of drilling planned in phase one to target unclassified mineralisation defined by the company’s exploration target.

The exploration target does not include any untested, along-strike or at-depth extensions, though Greenstone said these areas would be tested in phases two and three.

Phase one is expected to wrap up in March 2023.

Shares in Greenstone Resources were up 16 per cent to 2.9 cents at 11:53 am AEDT.

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