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Intermin Resources acquires gold project near Kalgoorlie

The project contains a JORC (2004) resource of 160,000 ounces gold.
Intermin Resources acquires gold project near Kalgoorlie
A drilling program will be planned

Intermin Resources (ASX:IRC) has signed a binding agreement to acquire the Anthill gold project located 54 kilometres northwest of Kalgoorlie-Boulder in Western Australia.

The project is on the Zuleika Shear in the Western Australian goldfields and is 10 kilometres from Intermin’s 100% owned Blister Dam project.

Anthill contains a JORC (2004) resource of 160,000 ounces gold and data review is now underway with drilling planned for the current June quarter.

Limited drilling has been completed over the last 5 years with historical drilling demonstrating broad high grade zones in the upper areas and high grade intercepts at depth.

Jon Price, managing director, commented: “The project is a fantastic addition to our portfolio and lies within multi-million ounce gold camps on the Zuleika and Carnage shear zones where recent new discoveries have been made by the major producers in close proximity.”


Anthill acquisition

Intermin has agreed to pay $300,000 cash for the project comprised of $50,000 upfront and $250,000 due by June 30 2017. It will also pay a $5 per ounce royalty on the first 100,00 ounces mined.

The project consists of one granted mining lease and one miscellaneous license for haulage covering an area of 7 square kilometres.

The previous owners, Metaliko Resources Ltd, a subsidiary of Echo Resources (ASX:EAR) has quoted Anthill as containing 5.18 million tonnes at 1.0 g/t gold for 160,000 ounces of gold at a 0.5 g/t gold cut-off.

Drilling reported on the project in 2011 contained significant broad intercepts from both infill drilling and drilling outside the current resource envelope.

These down-hole results included:

- 44 metres at 2.4 g/t gold from 56 metres;
- 42 metres at 2.1 g/t gold from 50 metres;
- 38 metres at 1.9 g/t gold from 52 metres;
- 6 metres at 6.1 g/t gold from 40 metres; and
- 32 metres at 1.8 g/t gold from 89 metres.

Drilling from 2002-2003 included high grade intercepts including 1 metre at 88.9 g/t gold and 5 metres at 19.25 g/t gold.

Drilling has defined a mineralised zone that extends from surface to over 200 metres depth.

The deeper parts of the mineralisation zone are only tested by a small number of drill holes and its depth extent remains open.


Next steps

Intermin will now conduct a detailed assessment of the database and all geological information for the project and plan a drilling program.

The drilling objective will be to confirm the quoted resource to JORC (2012) standard and to test extensions to mineralisation along strike, at depth and on parallel structures.


Analysis

Anthill is a good addition to Intermin’s portfolio as it is in an area surrounded by major gold miners who have delivered a number of new discoveries through targeted drilling.

It expands Intermin’s portfolio which contains a number of quality gold assets in the world class gold mining region surrounding Kalgoorlie-Boulder in Western Australia.

The project is located immediately along strike from high grade gold camps including Bullant (+1.0 million ounces), Broads Dam (+4.0 million ounces), Kundana (+5.0 million ounces) and Frogs Leg (+1.5 million ounces).

With mining at the Teal Stage 1 open pit gold operation advancing, Intermin is shaping up for a busy 2017.

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.

Intermin shares are up  40% over the past 12 months, currently trading at $0.10.

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