Montezuma Mining Company Ltd (ASX:MZM) continues to unlock the potential of the highly-prospective Yamarna Gold Project, located in Western Australia.
The latest results confirm the Jatz Prospect as a strongly mineralised corridor within a package of prospective Archean greenstones.
Recent nearby discoveries include Gold Road Resources' (ASX:GOR) growing 5.6 million ounce Gruyere deposit.
Geochemical aircore drilling highlights
The geochemical blade-refusal aircore program along the Jatz strike corridor delivered returns of basement gold up to 12.1g/t.
The regional scale high tenor basement gold anomaly now extends over 1 kilometre in strike at over 0.5g/t gold.
The anomaly broadens in width and grade to the north and is open to the north and west.
Moving forward, the heritage clearance is in place to extend drill coverage to the north and west to define the northern extent of the target corridor.
Montezuma said that drilling is to commence as soon as practicable.
Potential of Jatz
To date, the drilling at Jatz has only tested a small part of what is now interpreted as a target corridor 5 kilometres in strike lending and up to 2 kilometres in width.
The area contains greenstone rocks with demonstrated potential for high-grade Archean gold mineralisation.
Analysis
Montezuma is well-funded with $5.7 million in cash at the end of December 2015, and with a market cap. of circa $14 million, the enterprise value is just circa $8 million.
With drilling pending in a region known to host multi-million ounce gold, Montezuma is leveraged to exploration success over coming months.
The company's share register is also very tightly help, with the top 20 owning 70%.
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