Cervantes Corporation Limited (ASX:CVS) surged 143% in early trade after receiving a number of bonanza-grade gold intersections from the Albury Heath project in Western Australia.
The first batch of assays from a recent reverse circulation drilling campaign returned results of up to 202.8 g/t, 129.3 g/t and 49 g/t gold with many other high-grade intersections.
Leading ASX gainer
Cervantes is a leading ASX gainer with shares up to 1.7 cents, equal to its 12-month high.
There were 29 RC holes drilled for 1,866 metres and the aim was to test the down-dip potential of known lodes where mineralisation is open and shows no sign of abating at depth.
Up-dip potential also tested
It also tested the up-dip potential as near-surface mineralisation has been inadequately sampled in past drilling.
Drilling sampled the potentially mineralised footwall to historical underground stopes, which were also inadequately sampled.
This drilling indicated that the stopes have an envelope of mineralisation on the hanging wall and also, where tested, on the footwall.
Best results are:
Cervantes said these were pleasing results in that previous drilling indicated some of the areas previously drilled were devoid of any significant gold grades.
Possible resource extensions
The current drilling has possibly extended the resource of those areas with final assays expected within the next two weeks.
An interpretation of the drilling can then be made and a model synthesised.
A decision will then be made on whether to recalculate the resource model for Albury Heath and what additional work may be needed to further define that resource.
Near other gold plants
The Albury Heath resource occurs within relatively easy trucking distance of a number of existing operating and mothballed gold plants.
Continued development of this project may provide early cash flow for Cervantes if the ore is toll treated, while Cervantes considers acquisition of, or working with other PL holders in the area.