The company’s shares are trading circa 14% higher intra-day, at $0.016.
Jumbuck Gold Project is part of the Western Gawler Craton Joint Venture which includes Tyranna (75%) and WPG Resources (ASX:WPG) (25%).
The new reverse circulation drill holes were completed at Greenwood, located circa 37 kilometres north of the Challenger Gold Mine, which is owned and operated by WPG.
Bruno Seneque, managing director, commented: “There is a lot of excitement in the Tyranna camp right now because this is what we have been looking for at Greenewood to confirm our confidence that we can identify a Challenger analogue deposit.
“Challenger has produced 1.2 million ounces of gold over its life and it would make geological sense that there are similar deposits nearby.
“Diamond drilling will now be directed with better geological modelling to increase this resource as we test the deeper and higher grade mineralisation down plunge on this structure.”
High-grade gold structure confirmed
Tyranna completed a successful drilling program in the first half of 2016, which yielded the first new discovery within the Jumbuck Gold Project area in over 15 years at the Greenewood gold prospect.
The latest drilling at Greenewood comprised of 23 holes for 1,470 metres, with assays pending for 16 holes.
The drilling highlights include 22 metres at 4.03 g/t gold from 50 metres (including 1 metre at 20.4 g/t gold from 51 metres and 1 metre at 36.9 g/t gold from 55 metres).
Importantly, the drill hole intersected pipe-like, plunging “Challenger” type structure into fresh rock.
Further drilling planned
Tyranna is now in the process of obtaining approvals to follow up this discovery with a number of planned diamond drill holes.
The diamond drilling will provide valuable structural data and is planned to commence in late November.
Last month, the company intersected wide, shallow gold from stage 2 drilling at the Typhoon Gold Prospect within the Jumbuck Gold Project.
Tyranna’s raw assay data results from stage 1 and 2 drilling at Typhoon is higher grade than the historical drilling intercepts.
Typhoon therefore has the potential to become a satellite mill feed located less than 40 kilometres from the Challenger Gold Operations.