Following last November’s 20 gram per tonne gold find at its Liontown resource which boosting shares by 72 percent, microcap Sunshine Metals Ltd (ASX: SHN) has brought in a second rig to test shallow oxide extensions to the high-grade gold delineated in Liontown’s footwall.
Previous drilling programs had focused on the footwall itself, but the new program – which entails nine holes of reverse circulation (RC) drilling to around 600 metres – will zone in on four historic shafts which were sunk into the main feeder zone of the footwall, which is rich in copper-gold mineralisation.
Inspection of the shafts and other mine material revealed indications of both trace gold and malachite (copper carbonate).
Managing director Dr Damien Keys said he was hoping to see extensions to the resource based on the second rig’s drilling work, considering what was indicated at the footwall shafts.
“Four significant shafts – estimated 20- 30m deep – are located on the eastern end of the Liontown Resource,” he said.
“The shafts were sunk into the Liontown footwall zone, where recent drilling has intersected 17 metres at 22.1 grams per tonne gold and 20 metres at 18.2 grams per tonne gold.
“The drilling has the potential to extend the gold rich zone to a potential oxide zone at surface which would bring dimensions of the gold rich zone to around 300 metres by 140 metres.”
He added that assays from all drilling were expected later this month and next month.
The company is also targeting extensions of gold and copper mineralisation around the Gap Zone Feeder, with drilling in this area testing around 100 metres from a historic intersection that assayed 1.75 metres at 16.42 grams per tonne gold and 6.27 percent copper.
Liontown’s resource is estimated at 4.1 million tonnes, containing zinc, copper, lead and gold.
Sunshine Metals is trading at 1.9 cents, up 11 percent.