Saturn Metals Ltd (ASX:STN) has received further strong gold results from the Apollo Hill project near Leonora in WA’s Goldfields, which highlight the potential to increase the 685,000-ounce resource.
Best of the remaining results from a reverse circulation (RC) and diamond resource infill drilling completed in May was 7 metres at 3.39 g/t gold from 31 metres.
The program was completed at the southern and central parts of Saturn’s 100%-owned Apollo Hill project.
Saturn is preparing a resource upgrade and expects to complete this in coming months.
The resource currently stands at 700,000 tonnes grading 1.0 g/t for 685,000 ounces of gold.
Shares are up 4% to an intra-day high of 26 cents.
Apollo Hill location, Saturn’s tenements and surrounding deposits, gold endowment and infrastructure.
Saturn managing director Ian Bamborough said: “It is very pleasing to continue to see solid intersections reporting above the Apollo Hill resource grade.
"We look forward to incorporating the results into our next resource upgrade.
"Importantly, drilling has recommenced at the Apollo Hill hanging wall in the north, where an aggressive program is testing for shallow high-grade mineralisation.”
Other significant intersections returned from main lode resource drilling are:
30 metres at 1.23 g/t from 88 metres, including 15 metres at 2.0 g/t from 103 metres, which also included 8 metres at 2.7 g/t from 103 metres; and
18 metres at 1.30 g/t from 18 metres, including 8 metres at 2.40 g/t from 28 metres.
RC drill results relative to the resource. Improved grade hanging wall mineralisation continues to develop.
RC drilling has recommenced at Apollo Hill to further test recently defined higher grade hanging wall lodes in the north of the deposit.
This is following up a number of high-grade intersections such as 10 metres at 5.78 g/t from 46 metres, including 5 metres at 11 g/t from 46 metres.
The company is planning up to 10,000 metres in this follow-up program aimed at expanding the newly discovered high-grade hanging wall zones.
Several of these holes have already been completed and assays are pending.
READ: Saturn Metals obtains strong gold recoveries in sorting tests on Apollo Hill mineralised material
Having finished the March 2019 quarter with $2.8 million in cash, and after raising $1.5 million through a share placement in May, Saturn is well funded to accelerate drilling activity and has brought a second rig to site.
Apollo Hill is about 60 kilometres southeast of Leonora and the project is surrounded by excellent infrastructure and several significant gold deposits and operations.