Paynes Find Gold (ASX:PNE) has concluded a second phase diamond drilling program finding visible gold in the drill core at Paynes Find in Western Australia.
Several quartz veins were intersected containing sulphide minerals, some with traces of visible gold.
The company is cashed up recently completing a $4m rights issue and $1m placement and has $3.7m in cash. It was reinstated to the ASX in July.
Paynes Find is an historically significant gold producing region, 420 kilometres northeast of Perth, Western Australia and serviced by the sealed, Great Northern Highway and an airstrip.
The company has completing 5,326 metres of RC Drilling in 51 holes to a maximum depth of 250 metres.
6 Diamond Drill holes for a cumulative 1,540m to maximum depth of up to 480 metres have been completed.
The Phase II drilling program was carried out to the north and west of the Stage 1 area to test open-ended known extensions of gold mineralisation.
Comprehensive detailed assay results are expected by the end of September 2012.
Previous exploration carried out by Paynes Find in 2011, included geological mapping, an MMI geochemical survey and reverse circulation (RC) drilling identified up to 41 quartz lodes over a width of 600 metres which has now been tested as part of the Phase II drilling program.
Geological mapping by the Company has noted evidence of lower grade link structures between the main high-grade lodes.
The Phase II drilling program was designed to test a previously developed bulk mining concept incorporating high-grade quartz lodes and low-grade mineralisation comprising country rock hosting thin auriferous veins and joints grading.
Favourable results from the first stage drilling confirmed the presence of near-surface gold mineralisation over widths potentially amenable to bulk selective mining.
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