At Tuesday's online Proactive CEO Investor Session, Vango managing director Andrew Stokes told investors that the company was "onto something" with the brownfields project.
He said: “Previous mining concentrated on the top 100 metres and we’ve identified significant potential immediately below this area for resource extension and repeats.
“We recently published a 1-million-ounce resource update and we have diamond and RC rigs drilling on the property now.
“We’re on the road to something really special here.”
Update to 1 million ounces
The company announced a resource update in May to 1 million ounces for the project.
Stokes said: “This is split between the higher tonnage open pit and the high-grade (about 8 g/t) underground.
“And importantly, two thirds of the resource (around 66%) reports to the indicated category.
“Our focus is now on expanding the underground component, testing high grade extensions, as well as deeper multi-million-ounce Plutonic repeats.”
The project is at the northern end of one of Norseman-Wiluna belt, and covers around 40 kilometres of the 50-kilometre world-class Marymia gold belt, which hosts the 5.5-million-ounce Plutonic gold mine, operated by Superior Gold Inc (CVE:SGI).
“As a consequence, we have a large exploration operational data base, including metallurgical performance, in the main from the top 100 metres.”
The three drilling targets could potentially host repeats of Plutonic mineralisation.
Vango has identified three key corridors where it believes there could be repeats of the Plutonic geological settings – the PHP, Trident and Triple P corridors.
Stokes said: “[At PHP] We’ve identified that some of the large structures here have been poorly tested and this is where we’re drilling now, stepping out, testing depth and down plunge extensions.
At the west load the company intersected 4 metres at 12 g/t and at the the main load intersections include 7 metres at 104 g/t and 3 metres at 19.7 g/t.
Stokes said: “After PHP, drilling moves on to the Trident area where we have an underground resource of 410,000 ounces at a grade of 8 g/t.
“There is a gap between Trident and Mars, and we believe that the mineralisation may well link these two areas, which may potentially double the strike length, and if so, we will test for the next repeat below.
“We’ll also test for deeper Plutonic style mineralisation with a couple of 500 metre diamond drill holes.”
At Triple P, work indicates that the mine mafics continue underneath sediments where the company has had results of 4 metres at 50 g/t.
Stokes said the sites untested potential was clear as the three targets all had settings similar to Plutonic.
He said: “There is potential for Plutonic setting repeats at Triple P, at Trident and at PHP.
“Plutonic hosts 5.5 million ounces and it has been drilled to 600 metres depth.
“Marymia has a published resource of 1 million ounces, but its only been drilled well to 100 metres and in a couple of places 200 metres.
“Clearly this represents an exciting opportunity.”
The company plans to complete resource definition drilling by the end of the year.
The company is well funded to move forwards with a recent capital raise injecting $15 million in cash to fund the next phases of drilling and feasibility work.
Stokes said that Vango had a clearly defined strategy to deliver shareholder value, with key milestones in the near-term.
He said: “We’ve delivered a 1 million ounce resource upgrade and we recapitalised the company.
“We’re on the ground drilling extension and repeat targets as well as testing deeper large-scale targets which I anticipate will mostly be complete by the year-end.
“We’ll then transition into resource definition drilling and move forward with our feasibility studies, converting resources to mining plans with a view to developing a major production centre at Marymia.”