Intermin Resources (ASX:IRC) is in a position to potentially benefit from high-grade gold mineralisation drill results recorded at the at the Kombi Gold Prospect in Western Australia.
The Kombi Gold Prospect lies on EL51/1040 which is subject to a farm-in and joint venture agreement with Mithril Resources (ASX:MTH).
Recently, Mithril drilled six reverse circulation holes totalling 504 metres to test for high-grade gold mineralisation beneath the historic Gloria June gold workings.
- 4 metres at 12.76 g/t gold from 20 metres; and
- 1 metre at 5.44 g/t gold from 20 metres.
With no historical drilling beneath the most recent holes, the new intercepts remain open in all directions and are a high priority for follow-up.
Given the success of drilling at Kombi, Mithril plans to undertake further drilling at Kombi as soon as possible.
Mithril can earn a 60% interest by completing expenditure of $2 million by 14 April 2019 and has spent circa $1.24 million to date.
Intermin is already a gold producer
Intermin is a gold producer through its mining operation at the Teal Gold Mine located 11 kilometres north-west of Kalgoorlie-Boulder in Western Australia.
Teal is on track to produce 15,000 to 16,000 ounces generating net cash flows to Intermin of up to $8 million at A$1600 an ounce gold price.
The current gold price is A$1,654 per ounce, which bodes well for net cash flows.
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.
Next phase of growth
Intermin plans to release the feasibility study results for both its Goongarrie Lady Gold Project and Teal Stage 3 in the coming March quarter.