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Drummond Gold kicks off drilling targeting gold at Sullivans in Queensland

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Drummond Gold (ASX: DGO) has commenced drilling targeting gold at Sullivans Intrusion Related Gold System, located 4 kilometres south of Mt Coolon, west of Mackay, in Queensland.

A soil anomaly over an area of 650 x 250 metres defines the target area with values up to 2 grams per tonne (g/t) gold and surface rock chip samples assaying up to 76 g/t gold and 83 g/t silver.

Previous shallow reverse circulation drilling in late 2007 by Drummond Gold intersected 68 metres at 0.3g/t gold, 1.4g/t silver and 0.3% zinc from a depth of 40 metres to the end of the hole.

These results indicate that gold and associated mineralisation is increasing in tenor in a westerly direction.

The recent reassessment of Sullivans has confirmed that the gold, silver and base metal mineralisation is associated with alteration and fractured stockworks and is typical of an Intrusion Related Gold System similar to Mt Leyshon and Kidston, also in Queensland.

The drilling program underway will test underneath the high value surface rock chip samples, down dip to the west of the results intersected in shallow previous drilling.

The company also plans to conduct drilling at the Koala high grade mine target with four diamond holes to be drilled during the coming quarter to test for depth extensions and repetitions to known mineralisation.

The drilling of Koala will occur in conjunction with that at Sullivans. Drilling in the past has only been to a vertical depth of 250 metres below surface.

Exploration will also commence in the Bendigo Region. Wide spaced drilling programs approved by the appropriate regulatory authorities will be conducted along road verges in the Woodvale, Apollo and Break O’Day target areas. The drilling is scheduled to commence prior to the end of the September 2011 quarter.

The Bendigo region exploration is by way of a Farm-In and the company has been granted an extension to November 30 to meet a $500,000 expenditure commitment.

Drummond is also exploring the Mount Cannindah area for large scale Porphyry-style copper-gold mineralisation. 

The company said an experienced geological consultant will be employed to review all past data generated for the Mount Cannindah Project to assist in defining further exploration targets within the underexplored tenement holding surrounding the Mount Cannindah Deposit.

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