Intermin Resources Ltd's (ASX:IRC) partner, Mithril Resources (ASX:MTH) is commencing a drill program targeting high-grade gold at the Kombi prospect, located circa 70 kilometres southeast of Meekatharra in Western Australia.
The drilling at Kombi will follow-up recently obtained shallow gold intercepts of 4 metres at 12.76 g/t gold from 20 metres and 1 metre at 5.44 g/t gold from 20 metres.
The Kombi gold prospect lies on Intermin’s exploration license which is subject to a farm-in and joint venture agreement with Mithril.
Mithril can earn a 60% interest in the tenement by spending $2 million by April 2019, and an additional 15% by completing further expenditure of $2 million over a further 2 years.
Kombi comprises shallow historical gold workings with a reported production of 1,094 tonnes at 10.8 g/t gold.
With no historical drilling beneath the most recent holes, the new intercepts remain open in all directions and are high priority follow-up targets.
Meanwhile, Intermin is on a self-funded search for Australia's next gold discovery at the Anthill project, located on the Zuleika shear zone in the Western Australian Goldfields.
The recent high-grade gold drilling results at Anthill demonstrate the large scale open cut and underground potential of the project.
Intermin is a gold producer through its mining operation at the Teal Gold Mine located 11 kilometres north-west of Kalgoorlie-Boulder in Western Australia.
Teal is on track to produce 15,000 to 16,000 ounces of gold generating net cash flows to Intermin of up to $8 million at A$1600 an ounce gold price.
The company is already well-funded with over $5.7 million in cash at the end of the September quarter, with a robust 2018 and 2019 mining project pipeline.