Intermin Resources (ASX:IRC) has received final drill results from its 33 hole program at the 100% owned Teal gold project located 11 kilometres from Kalgoorlie-Boulder in Western Australia.
Results include 16 metres at 4.06 g/t gold from 73 metres depth.
The program comprised 33 reverse circulation holes for 3,941 metres and 10 diamond tails for 921.3 metres.
The program was designed to intersect gold mineralisation beneath the current Teal Stage 1 pit and south along strike, named Teal South.
An updated resource estimate is expected in the current March quarter.
Intermin is also expecting first gold production from Teal Stage 1 in the coming weeks.
Jon Price, managing director, commented: “The diamond drilling, in particular, has given us a much clearer understanding of structural controls on the mineralisation and will assist with our modelling and targeting for the next drilling campaign.
“Teal Deeps is only just starting to show its hand and will be a key focus for the company going forward.”
Drill result details
Significant results from the drill program include:
- 16 metres at 4.06 g/t gold from 73 metres including 9 metres at 5.37g/t gold;
- 15 metres at 4.24 g/t gold from 130m including 7 metres at 5.54 g/t gold;
- 3 metres at 12.04 g/t gold from 80 metres;
- 3 metres at 4.96 g/t gold from 50 metres;
- 2 metres at 14.15 g/t gold from 72 metres;
- 2 metres at 9.81 g/t gold from 97 metres; and
- 1.61 metres at 17.80 g/t gold from 215.39 metres.
The program returned numerous high grade hits providing Intermin with significant encouragement to pursue an aggressive follow up exploration program in the June quarter.
Multiple sub-vertical parallel lodes have been identified with good width and grade and now more continuous along section.
Additional metallurgical test work will also be undertaken to determine the materials amenability to conventional free milling, roasting and ultra-fine grinding extraction methods.
The drilling results in general indicate typical grade variability seen in economic deposits of this type with most mineralisation visually identified in the core.
Intermin has a number of quality gold assets in the world class gold mining region surrounding Kalgoorlie-Boulder in Western Australia.
The company’s flagship projects are the 100% owned Menzies and Teal projects which host significant mineralisation and have the potential to be mined via open cut and underground methods.
The Teal Stage 1 open pit gold mine within the Teal project represents a near term opportunity for gold production.
The company recently completed site mobilisation and commenced pre-strip mining.
The small open pit gold project is capable of producing 15,567 ounces of gold over 9 months for a capital cost of $3.9 million.
The company also has interests in a vanadium-molybdenum project in northwest Queensland.
Drilling has proved successful for Intermin both along strike to the south and at depth.
Furthermore, thanks to the diamond tails, the company is now getting a clearer understanding on structural control on the mineralisation.
Drill has clearly demonstrated the underground potential and further drilling will be completed in the June quarter.
Intermin is fortunate to be located in close proximity to three ideal processing plants in Kalgoorlie and the company will continue discussions with the third party owners.
With Teal oxide extensions and Teal deeps shaping up, the area, together with the nearby Peyes Farm and the new Jacques Find projects, is fast becoming a new mining centre.
Intermin shares are up over 80% over the past 12 months.
Investors remain leveraged to news flow in the short term regarding:
- Teal production/mining updates;
- Regional exploration results; and
- New pit optimisation results.
All is in place for ore delivery to Paddington over the coming weeks, which will complete Intermin’s transition to gold producer.
Production after that time is expected to be continuous at circa 30,000-40,000 tonnes per month.