The diamond holes have confirmed the intervals and grades reported in historical holes drilled by a previous exploration company.
Crater Gold is now optimistic that much of the remaining historical data may be acceptable for use in a JORC-compliant resource estimation.
Russ Parker, managing director, said: “We are really pleased with the results to date of the diamond drilling program.
“We have confirmed thick intersections of graphite mineralisation with good grades and, from the information available, it appears the mineralisation is hydrothermal in nature which often contains good quality flake graphite.”
Strong intersections from both holes
One diamond core hole returned a best intersection of 62.7 metres at 6.79% graphitic carbon from 29.3 metres, including 7.0 metres at 10.05% from 66.0 metres.
The other hole returned 53.9 metres at 6.79% graphitic carbon from 69.1 metres, including 14.0 metres at 8.41% from 101 metres.
Samples will now be selected for petrological and mineralogical examination.
Test work is planned
Based on the results of these procedures, one or more composite samples will be selected for detailed metallurgical test work to determine graphite quality and potential recoveries.
Central Coast Exploration previously reported a non-JORC compliant resource of 20 million tonnes at 5.5% graphite, including a zone of 6 million tonnes at 10% graphite.
This data and the new drilling provides Crater Gold with optimism for the potential of the Golden Gate project area.
However, it is uncertain if further drilling will demonstrate similar correlation with previously reported historical graphite drill intersections and grades.
Even if such correlation is achieved, it may not provide sufficient information to allow estimation of a resource estimate in accordance with the 2012 JORC Code.
Crater Gold also has the Crater Mountain Gold Project in Papua New Guinea, at which it aims to restart mining at the HGZ underground mine.
The company is awaiting a final site inspection by the Chief Inspector of Mines before restarting operations.
Results from soil sampling at the A2 Polymetallic Project in Queensland are also expected shortly.
The SGH sampling program involved collection of B-Horizon soil samples from 361 sites together with 16 selected duplicates for a total of 377 samples.
SGH is a deep penetrating geochemical technique which has been successful in being able to detect geochemical anomalism for metals from depths of up to 900 metres.