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Market:	ASX
Sector:	Gold Mining
EPIC:	DGO
Latest Price:	0.03 (0.00%)
52-week High:	0.09
52-week Low:	0.02
Market Cap:	5.89M

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Drummond Gold

Drummond Gold’s (ASX: DGO) objective is to significantly increase its resources and reserves through the discovery and acquisition of gold and base metal deposits. Pursuing growth through exploration, acquisition, and early and sustained production.

Drummond Gold sees gold potential at Mt Coolon in North Queensland

Thursday, March 11, 2010

An updated appraisal of prospects within the Drummond Gold (ASX: DGO) tenements at Mt Coolon in north Queensland has highlighted the potential of the Badlands polymetallic gold-silver-lead-zinc prospect.

The review of geology and drilling results has identified the mineralisation as Intrusion Related Goldstyle, with similarities to the well-known Mt Wright and Mt Leyshon gold mine deposits.

Drummond Gold is seeking to increase its current gold Resources of 283,000 ounces in the historic gold mining areas of Mt Coolon and additional 308,000 ounces under management at Yandan 45 km to the west where it is earning in.

Results of drilling at Badlands in 2007 included:

- 1m (from 107m) @ 12.5 g/t gold, 31 g/t silver, 1.27% lead and 5.27% zinc,

- 5m (from 103m) @1.7 g/t gold, 4 g/t silver, 0.01% lead and 0.25% zinc

- 4m (from 51m) @ 0.3 g/t gold, 17 g/t silver, 0.03% lead and 3.36% zinc.

The Badlands Prospect, which is located 10 km south of Mt Coolon, has indications of Intrusion Related Gold-style mineralisation.

Drummond Gold is currently considering options to further explore the Badlands and Manaman
Prospects to determine the full potential of the mineralisation outlined to date.

The Badlands Prospect is located within two kilometres of the Manaman Granodiorite Complex, a polyphase biotite-hornblende granodiorite to medium-grained granite that has been intruded by numerous porphyry and rhyolite dykes.

The granitoid body has been emplaced along a 5 kilometre extent of the Anakie-Drummond Basin contact a major regional listric fault structure.

The company said there are also indications of Intrusion Related mineralisation hosted by the granitoid complex based on geological and geophysical observations and as evidenced by the TPM copper-gold skarn deposit on the western flank of the granitoid.

Exploration in the Mt Coolon area and the Drummond Basin generally has predominantly been directed towards defining epithermalstyle gold mineralisation.

The Badlands and TPM Prospects provide indications of a large polymetallic intrusive-style mineralisation system that has received little exploration attention. The Badlands prospect is still at the early stages of evaluation and there has been insufficient exploration to define a Mineral Resource, however, Drummond Gold is highly encouraged by the exploration results.

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