- OzAurum Resources (OZM) hits shallow high-grade gold at its Mulgabbie North project near Kalgoorlie in Western Australia
- The company completed 35 aircore drill holes in the area, with several intercepting paleo-channel gold mineralisation
- OzAurum now interprets the paleochannel to flow to the southeast which it says indicates the potential for a significant primary gold source
- Meanwhile, drilling is progressing at the Demag discovery, while a structural review of the company’s Patricia gold project is scheduled for May 23
- Shares in OzAurum Resources are down 9.09 per cent to 20 cents each at 11:53 am AEST
OzAurum Resources (OZM) has hit shallow high-grade gold at its Mulgabbie North project near Kalgoorlie in Western Australia.
The company completed 35 aircore holes across the project targeting high-grade paleochannel gold mineralisation.
Several holes struck this type of mineralisation, according to OzAurum, with grades peaking at 15.15 grams of gold per tonne (g/t gold) over a one-metre interval from 20 metres downhole.
OzAurum drilled four of the holes south of the Golden Goose prospect in the project area to test a magnetic high target. However, the company said it did not intersect any significant gold mineralisation from these holes.
Still, from this round of work, OzAurum said it had a greater understanding of the paleochannel gold mineralisation at Mulgabbie.
In particular, the company interprets the paleochannel to flow to the southeast, indicating a potential significant primary gold source situated between the James and Libby prospects.
Future aircore, reverse circulation and diamond drilling work is planned for this area.
OzAurum’s Chief Executive Officer, Andrew Pumphrey, said he believed the new target area had the potential to host a “significant” discovery.
“The widespread zone of gold mineralisation within the Mulgabbie North Project, which now extends over 4.2 kilometres, provides us with even greater confidence in the large-scale potential of the project,” Mr Pumphrey said.
“In particular, we are excited by the potential of this area where the host rocks are intermediate-felsic volcaniclastic units — very similar to the Northern Star (NST) Carosue Dam Karari and Whirling Dervish gold mines.”
Meanwhile, drilling is progressing at the Demag zone within the project, with the second diamond drill hole at a depth of 168.30 metres.
OzAurum is also preparing to commence a structural review of its Patricia gold project on May 23, with two diamond drill holes completed so far.
Shares in OzAurum Resources were down 9.09 per cent to 20 cents each at 11:53 am AEST.