- Results from the latest drilling program at Resources & Energy’s (REZ) Gigante Grande prospect could lead the company to a major gold deposit
- Gigante forms part of the gold explorer’s East Menzies project, which hosts 22 drill-ready targets just 130 kilometres from Kalgoorlie in WA
- In a bid to determine whether further mineralisation existed beyond the prospect, REZ conducted step-out drilling 700 metres from its southernmost drill target
- Pleasingly, the explorer uncovered gold zones across three drill holes, results which extended the mineralisation at Gigante over a 1.2-kilometre strike length
- Speaking to the result, Resources & Energy said it had important implications in the search for a major deposit across East Menzies’ eastern portion
- While REZ believes the findings are a good sign of what’s to come, it seems investors are less than impressed with the results
- Company shares fell 30.5 per cent in early trade, worth 7.3 cents
Results from the latest drilling program at Resources & Energy’s (REZ) Gigante Grande prospect could lead the company to a major gold deposit.
Gigante forms part of the gold explorer’s East Menzies project, which hosts 22 drill-ready targets just 130 kilometres from Kalgoorlie.
In its latest campaign, REZ searched for mineralisation beyond the southernmost target at Gigante. The explorer wanted to test whether gold continued to the south along the Moriarty Shear Zone, a target which forms part of Menzies’ eastern tenement package.
To determine this, Resources & Energy conducted step out drilling 700 metres from the southernmost exploration hole and uncovered multiple gold zones across three boreholes. In its analysis of the assays, the company described this as an important exploration result.
At one of the targets, the explorer intersected a peak assay of two metres at 3.85 grams per tonne gold from 58 metres. While the gold grades aren’t exceptionally high, REZ believes the results are a sign of what’s to come.
More broadly, these drilling results extend the gold mineralisation at the Gigante Grande prospect over a 1.2-kilometre strike length.
“This has important implications in the search for a major deposit in this part of the project area,” the company stated today.
Nevertheless, Resources & Energy’s work remains far from over. Now, the company is waiting on assays for the final two holes at Gigante Grande, which will allow it to wrap up all results at the prospect.
Additionally, the company awaits assays at two of East Menzies’ other prospects — the Chronos and Goodenough tenements — and will report on these separately once results come through.
While REZ believes the findings are a good sign of what’s to come, it seems investors are less than impressed with the results. Company shares fell 30.5 per cent in early trade, worth 7.3 cents at 11:44 am AEDT.