North Queensland Metals (ASX: NQM) has reported the latest underground drilling results from its Pajingo Joint Venture gold mine in Queensland with bonanza grade gold intercepts of 4m@60.7g/t and 3.8m@49.9g/t.
North Queensland Metals owns 60% of the Pajingo Gold Mine in joint venture with Heemskirk Consolidated 40% (ASX: HSK) and is the operator of the mine.
The results confirm that the eastern extensions of the orebody continue and that the mineralised zones carry excellent grade. These results comprise the highest grade intercepts made since NQM assumed management of the Pajingo JV from the previous owner.
John McKinstry, NQM's CEO said, "this result confirms our belief that the characteristic Pajingo mineralisation continues extending east. We have waited for some time now to get the access for this drilling and we won't waste the opportunity."
The company said drilling is being conducted from the recently completed access drive on the 767RL level.
This development involved an investment of around $5M in infrastructure which specifically allows for delineation drilling of the Zed Sonia and Bunty orebodies, and to provide access infrastructure for extraction of these orebodies.
The same horizon has also been used to drill holes exploring for extensions of the main ore system. This area, now named Faith, shapes as another discrete pod. Faith runs south of and parallel to the Zed and Sonia ore zones and continues to run deeper, in keeping with the trend of the main ore structure.
A review of other exploration data has identified another exploration target, Dawn, which lies still further to the east.
Delineation drilling at Zed and Sonia is designed to reduce the hole spacings to approximately 20m x 20m intervals enabling mineralisation to be upgraded from Inferred category to Indicated category.
The information gained will also enable optimal positioning of future development.
With drilling now occurring around the clock NQM expects to be able to release more results as they come to hand in the coming weeks.
Neville Thomas, NQM's chairman, said "today?s drilling result strongly reaffirms our view that the Conquest takeover offer is inadequate and does not capture the true value of Pajingo."
The bid, pitched by Conquest at 0.5 Conquest shares plus 10 cents for every NQM share, is conditional on a 90% acceptance condition and values NQM at 27 cents per share. NQM last traded at 25 cents.