Intermin Resources (ASX:IRC) has intersected significant high grade gold at the 100% owned Peyes Farm gold prospect within the Teal gold project, 11 kilometres from Kalgoorlie.
Results extend mineralisation along strike and at depth from high grades intercepted in the August 2016 program.
Highlights include 13 metres at 5.42 g/t gold from 55 metres depth.
Peyes Farm is located 600 metres from the Teal gold mine, where first production is expected shortly and 200 metres from the new Jacques Find discovery.
A maiden resource estimate is expected in the current March quarter.
Jon Price, managing director, commented: “As we bring Teal into production in the next few weeks, it is extremely pleasing to see the significant opportunity to further expand our resource base in this exciting new mining centre.”
Drill result details
The follow up reverse circulation drill program is complete and comprised 46 holes for 3,796 metres.
It was designed to further extend gold mineralisation both along strike and at depth outside of the current mineralised envelope.
Significant high grade gold mineralisation was intersected including:
- 13 metres at 5.42 g/t gold from 55 metres;
- 9 metres at 5.14 g/t gold from 82 metres;
- 6 metres at 5.10 g/t gold from 44 metres;
- 1 metres at 29.7 g/t gold from 69 metres;
- 6 metres at 3.29 g/t gold from 68 metres; and
- 8 metres at 2.31 g/t gold from 80 metres.
The program returned numerous high grade intercepts and the mineralisation now spans 500 metres along strike.
Data review and modelling is underway for further extensional drilling in the June quarter.
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.
The infill and extensional drilling at Peyes Farm has produced encouraging results and the drill program’s value will be further realised in the pending maiden JORC resource.
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, currently trading at $0.11.
Investors remain leveraged to news flow in the short term regarding:
- Jacques drilling results;
- Teal production/mining updates;
- Regional exploration results;
- Pit optimisation results for Goongarrie Lady;
- New regional exploration targets and drilling plans; and
- Investor road shows planned for February and March 2017.
All is in place for ore delivery from Teal Stage 1 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.