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Krakatoa Resources finds shallow nuggety gold system at Turon Gold Project in NSW

Published: 17:06 24 Nov 2020 AEDT

Krakatoa Resources - Krakatoa Resources finds shallow nuggety gold system at Turon Gold Project in NSW
A geological model is being developed for the nuggety system to define future exploration

Krakatoa Resources Ltd (ASX:KTA) intersected multiple zones of quartz veining with associated mineralisation during a diamond drilling program at Turon Gold Project in a historical gold mining region of NSW.

Six diamond holes totalling around 1,295 metres were completed along a 1.6-kilometre-long historical line of workings at Quartz Ridge with mineralisation intersected in each hole.

The 100%-owned Turon Project, won by direct licence application in late 2019, is within the Lachlan Fold Belt's Hill End Trough, a north-trending elongated pull-apart basin containing sedimentary and volcanic rocks of Silurian and Devonian age.

In historical region

The project is in a historical mining region of Central West NSW that saw a goldrush in the 1850s.

Six HQ3 diamond holes were distributed along the length of the workings.

Drilling intersected multiple zones of quartz veining with associated mineralisation, including arsenopyrite, pyrite, with chalcopyrite and gold locally developed and best results include:

  • 2 metres at 2.42 g/t gold from 101.8 metres;
  • 1-metre at 2.68 g/t from 29.7 metres; and
  • 1-metre at 3.1 g/t from 76 metres.

Understanding geological controls

Krakatoa’s executive chairman Colin Locke said: “Understanding the geological controls of the mineralised system is paramount to understanding the mineralisation.

“Our maiden drill campaign of six holes was developed in only five locations over a strike length exceeding 1.6 kilometres and from these, we significantly advanced our geological knowledge of the Quartz Ridge system.

“Let’s not forget, coarse gold hosted by quartz veins, such as at Fosterville, have historically proven challenging to drill because of the erratic gold distribution.

“However, the prize if and, when found is immense. Our new understanding maintains Quartz Ridge as a shallow exploitable opportunity.”

Results in all holes

Six diamond holes were developed along the line of the historical workings with three designed to test extensions north and south of the Quartz Ridge mine, including one hole beneath highly anomalous gold intercepts, with results of up to 10 metres at 1.64 g/t gold in historical RAB drilling.

Intersected zones of vein quartz and sulphide mineralisation were selectively sampled and submitted to ALS in Brisbane for a limited assay suite, including gold, silver, arsenic, copper, lead, zinc and sulphur.

All holes intersected at least three significant zones or bands of commonly laminated vein quartz featuring coarse, euhedral arsenopyrite and pyrite encapsulated within an alteration halo defined by elevated arsenic, which ranges mostly between 100 and 6,040 parts per million.

Gold mineralisation occurs in narrow, moderately west-dipping discordant quartz veins mostly confined to the alteration bands.

Restricted access at Turon due to the rugged terrain and reconnaissance nature of the drilling further complicates matters.

The recent round of drilling has grown the company’s understanding of the geology and potential controls on mineralisation.

Multiple walk-up drill targets with significant gold tenor remain poorly tested and Krakatoa looks forward to providing updates on progress as it happens.

Next steps

The company will:

  • Review the results of the orientated core drilling and advance its geological knowledge as well as look to increase the exploration through possible further drilling and mapping to test rock and drill results south of Dead Horse Reef Mine, north of the Quartz Ridge Mine and at many of the workings in-between;
  • Survey, sample and map accessible underground workings; and
  • Review the historically prolific Just in Time Reef, 200 metres east of the Quartz Ridge line, which remains untested by drilling.

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