Wiluna Mining Corporation Ltd (ASX:WMX) (OTCMKTS:WMXCF) has been as much as 30% higher after fielding hits of up to 5.96 metres at 112.98 g/t from 230.44 metres in resource development infill drilling at the Wiluna Mining Centre.
Within the bonanza-grade intersection at Golden Age within the stage-1 sulphides expansion project were 0.41 metres at 185 g/t and 0.65 metres at 880 g/t.
The results are from a further 68 holes and 18,584 metres of resource development infill drilling at Wiluna and will enable the company to complete detailed resource and reserve estimates as part of the expansion project, described by the company as a sleeping giant.
Wiluna Mining executive chair Milan Jerkovic said: “Once again we are seeing outstanding results from drilling ‘under the headframe’.
“The quality of the drilling results means we are confident of delivering our stage-1 sulphide strategy.
“The drilling continues to define shallow high‐grade resource development targets.
“At the Wiluna Mining Centre from our first holes at Bulletin and Essex, Golden Age through to Calvert and the East Lode, this ongoing program has delivered consistent exceptional high-grade drilling results which shows that Wiluna remains one of the largest undeveloped gold systems in Australia.”
Shares in the company have been as much as 30% higher to $1.60.
Other results from the drilling include:
- 12 metres at 12.08 g/t from 52 metres at Bulletin;
- 10.46 metres at 7.21 g/t from 54.65 metres at Bulletin;
- 12 metres at 7.29 g/t from 180 metres at Bulletin;
- 9.45 metres at 8.7 g/t from 405.55 metres at Calvert;
- 5.44 metres at 5.96 g/t from 176.56 metres at Essex;
- 3 metres at 10.99 g/t from 237 metres at East Lode;
- 4.35 metres at 17.67 g/t from 243.4 metres at East Lode;
- 2.55 metres at 7.67 g/t from 43.9 metres at Lennon;
- 2.75 metres at 17 g/t from 77.3 metres at Lennon; and
- 9 metres at 4.82 g/t from 39.5 metres including 3.9 metres at 8.27 g/t at Lennon.
Golden Age long section showing Golden Age Lower target and significant results.
“Awaking a sleeping giant”
Jerkovic said: “The outstanding results provide confidence in our mineral resource and reserve estimates as we release them on a rolling basis from September 2020 through to December 2020 and into next year.
“The sheer volume of data we now must evaluate is significant and the potential for the scale of the gold system at just the Wiluna Mining Centre is extremely exciting.
“We do believe the drilling results show we are awaking a sleeping giant.”
Updating resources and reserves
The company intends to update mineral resource estimates in late September 2020 and reserves in December 2020.
Jerkovic said: “As I have continued to stress over the past six months, Wiluna Mining is a development and growth company currently focused on stage-1 sulphide development commencing by September 2021, while expanding our high‐grade mineral resources and making new discoveries.
“This is the strategy and focus of the company.
“It is important that we emphasise our current operation, until the commencement of stage-1 concentrate production in September 2021, is purely to provide valuable operating cashflow to assist in funding this transition to stage-1 and producing gold concentrates to achieve our goal to become a Tier-1 gold mine in a Tier-1 jurisdiction.”
Map of the Wiluna Mining Centre and planned Stage 1 Sulphide Expansion mining areas (coloured).
Ongoing drill plans
Six drill rigs are currently active on-site with the ongoing drilling program having five key objectives:
- Increase sulphide reserves at Wiluna for the stage-1 expansion;
- Increase sulphide reserves for stage-2 expansion;
- Make a new discovery in the wider Wiluna Mining Operations;
- Reveal the true scale of Wiluna sulphide resource; and
- Extend the free-milling mineral resources and reserves.
In the near-term, the company will make a final decision on construction of the concentrator for Stage 1 in September which will result in key items being ordered and construction activities commencing in October 2020.
Stage-1 sulphide mine development work has commenced in the Bulletin area with further development crews to be mobilised starting October 2020 to meet the timetable for first concentrate production in September 2021.
The feasibility study into the stage-2 expansion has commenced and is targeted for completion in the second half of 2021.