Intermin Resources Ltd's (ASX:IRC) shares have climbed 5.7% higher to $0.093 in early trade, following the company revealing broad gold zones on the Zuleika Shear in the Western Australian Goldfields.
A first pass diamond hole at the Anthill gold project intersected: 105 metres at 1.38g/t gold from 48 metres, including 41 metres at 2.35g/t gold.
The intercept confirms structural interpretation of the gold deposit and validates historic drilling data.
Results from the 7000 metre drilling program are expected to continue to flow through over coming months, after which Intermin will update the historic JORC 2004 Resource of 160,000 gold ounces.
Jon Price, managing director, commented:
"While the initial headline intercepts at Anthill are very encouraging, the geological data from the drill core has been invaluable in confirming the structural interpretation and the most appropriate drilling orientation for the follow up extension drilling.
"The company now looks forward to the results of the drilling campaign now underway and adding Anthill to our resource portfolio in the December quarter."
Price brings a wealth of experience to the company, and was the former general manager of the St Ives and Paddington gold mines, and was the founding managing director of Phoenix Gold which was acquired by Evolution Mining for $74.3 million in 2015.
The Intermin strategy
The company's key growth strategy is centred on discovery and resource expansion through exploration, while generating near-term cash by developing gold projects via third party infrastructure.
Intermin has banked more than $7.7 million since May, and has a robust 2017 and 2018 mining project pipeline.
This includes the commencement of its largest ever drill program, targeting new discoveries.
Additional options include pursuing regional consolidation opportunities of exploration assets, and joint ventures for multi-commodity non-core projects with partners.