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Egan Street Resources high-grade results likely to add to 401,000 ounce gold bounty at Rothsay

Diamond drilling has confirmed extensions to mineralisation at Woodley’s and Woodley’s East shears.

Drilling at the Rothsay Gold project
The company is expecting more assay results from drilling at Rothsay

EganStreet Resources Ltd (ASX:EGA) has received high-grade results from drilling at the Rothsay Gold Project in WA’s Mid-West which indicate the potential to increase the 401,000-ounce resource.

Assays from a 16-hole diamond drilling program confirm that high-grade mineralisation extends to the south on Woodley’s Shear, which hosts the resource.

Best results were 1.02 metres at 23.96 g/t from 242.48 metres and 0.7 metres at 18.74 g/t from 149.8 metres.

READ: EganStreet Resources hits bonanza grades of up to 129.2 g/t gold in extensions to Rothsay project

This program was designed to test the extension of the Woodley’s Shear position to the south of an offset of the lode position that was interpreted from magnetics.

Fourteen holes were drilled for 3,840.7 metres with two further diamond holes completed - one infilling the Woodley’s central resource and a second testing the Clyde and Miners shears to the north.

Shares are up more than 7% today to 22 cents.

Results from five more holes

EganStreet has received results from a further five holes, meaning seven of the 14 southern extension holes have now been returned.

Other results include 0.6 metres at 2.87 g/t from 284 metres and 0.55 metres at 1.84 g/t from 167.1 metres.

Woodley’s Shear showing significant and recent intersections.

The results confirm that the Woodley’s Shear continues through the interpreted offset and is mineralised.

About 150 metres of strike added

Based on assays received and visual observations of gold in quartz, this drilling has added about 150 metres of strike to the south of the known extent of mineralisation.

The extent of the Woodley’s East Shear has also been confirmed with results of 0.3 metres at 9.9 g/t from 83.55 metres and 0.95 metres at 1.29 g/t from 75.75 metres.

Woodley’s East Shear showing significant and recent intersections.

RC holes also completed

A 15-hole reverse circulation (RC) drill program has also been completed to test the southern extensions to Woodley’s and Woodley’s East, and samples have been submitted for assay.

These holes were designed to infill the diamond drill hole data in order to enable a resource estimation in this area.

Regional drilling

During the June quarter, 31 RC holes were completed for 3,294 metres at the Clyde and Miners shears with results recently received.

At Clyde North Shear 22 holes were completed with a number of intersections of moderate gold grades indicating the system has potential to carry gold-bearing fluids.

Assays of 1.0 metre at 3.80 g/t from 113 metres and 3.0 metres at 2.04 g/t from 34 metres strongly underpin the prospectivity of the Clyde shears.

READ: EganStreet Resources’ feasibility study confirms high-margin gold mine plan for Rothsay

A further six holes for 459 metres were completed on Miners Shear to follow-up a diamond intersection of 0.95 metres at 7.6 g/t from 237.3 metres and to test down dip of previous historical shallow drilling.

The best result was 1-metre at 11.07 g/t from 46 metres in quartz on Miners Shear while further south assays of 1-metre at 2.2 g/t from 84 metres and 1-metre at 3.7 g/t from 45 metres were returned.

This area will be reviewed with follow-up drilling planned for the first quarter of 2019.

Rothsay is 300 kilometres northeast of Perth and hosts an indicated resource of 820,000 tonnes at 9.3 g/t and an inferred resource of 600,000 tonnes at 8.0 g/t.

READ: EganStreet Resources secures key approval on path to Rothsay gold development

A definitive feasibility study in July 2018 outlined a production target of 2.1 million tonnes mined and 1.4 million tonnes processed at 6.9 g/t for 250,000 ounces of gold produced.

The company recently received WA Government approval of the Rothsay Project Management Plan.

This is the first of three key government approvals required to allow construction activities and operations to begin.

Quick facts: EganStreet Resources Ltd

Price: 0.29 AUD

Market: ASX
Market Cap: $40.49 m

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