Meteoric Resources NL (ASX:MEI) has confirmed historical mineralisation beneath and along strike from the Butchers Creek open pit gold mine with its first two diamond holes drilled at the Palm Springs Gold Project in WA's Kimberley region.
These holes which form part of a maiden 6,500-metre diamond and reverse circulation (RC) program, intersected broad zones of sulphide mineralisation within the host trachyte unit.
The results provide the company with a high degree of confidence to ramp-up drilling efforts at the project and shares have been as much as 14% higher intra-day to A$0.044.
"Liking what we see"
Meteoric managing director Andrew Tunks said: “For the first time we are seeing these wide high-grade mineralised gold zones in drill core and we are liking what we see.
“It was important to get these first diamond holes into the deposit to confirm the presence and geometry of the mineralised trachyte, and I am very pleased to report that these holes have intercepted mineralisation consistent with our interpretation.”
The company will now drill throughout September and October to complete around 6,500 metres of drilling comprising 5,000 metres of RC and 1,500 metres of diamond.
“Confidence to turn up the dial”
Tunks said: “We now have the confidence to turn the dial up on our drilling efforts and have both an RC and diamond rig in action simultaneously.
“Core logging and processing is progressing well and we expect to be reporting assay results from the first holes of the 2020 Palm Springs project in October."
Butchers Creek – 6,500 metre stage one drill hole collar locations
Regional tenement package work
In addition to the drilling, work on the lithostructural interpretation and compilation of the geochemical data for the company’s regional tenement package is expected in mid-September.
Meteoric believes that such a detailed structural synthesis has never been completed across the tenement package by previous explorers and will be crucial in targeting the many highly prospective gold targets associated with the extensive folding and faulting in the area.
Logging of the diamond drill core is expected to increase the company’s understanding of the controls on the gold mineralisation and this information will be systematically fed back into the structural/geochemical analysis to guide the stage two regional drilling.