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Eastern Goldfields Ltd drill results moves Davyhurst project toward mining

Published: 14:30 19 May 2016 AEST

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Eastern Goldfields Ltd (ASX:EGS) is on track to develop the Golden Eagle deposit at the Davyhurst Gold Project after latest drill results confirmed the geological model in Western Australia. 

The first phase of drilling at the Golden Eagle deposit is now complete, with results confirming that mineralisation extends over 100 metres north of the existing resource boundary and remains open at both depth and in the down plunge direction.

The best results from the drill program includes 2.95 metres at 11.06 g/t gold from 157 metres and 6.11 metres at 4.81 g/t gold from 229 metres.

Eastern Goldfields, led by executive chairman Michael Fotios, successfully raised more than $25 million to bring the Davyhurst project into development.

With existing processing infrastructure in place, including a 1.2 million tonnes per annum processing plant, Eastern Goldfields is well equipped to become a gold producer.

The latest drill results will now be incorporated into an updated and extended underground Resource model for Davyhurst, which has JORC 2004 Resources of 1.5 million ounces of gold at an average grade of 2.5 g/t gold.

Eastern Goldfields is now in advanced discussions with a specialist underground mining contractor regarding the commencement of mining in the second half of 2016.

 

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