Astro Resources NL (ASX:ARO) has defined a strong, robust IP conductivity anomaly in the centre of the Needles Gold Project in Nevada, USA, through modelling of a DC/IP anomaly generated in a recent survey.
The survey outlined a large and robust chargeability anomaly within volcanic tuffs 250 to 550 metres below surface with the IP anomaly interpreted to represent disseminated sulphides within Tertiary volcanics, possibly associated with gold mineralisation.
Planning to drill test the IP anomaly is in progress, with drilling expected to begin once a rig is located and brought to site. Astro has made provision from its existing cash reserves to fund this work.
Needles Gold Project in the prolific gold region of Nevada.
Chairman Jacob Khouri said the results from the DC/IP survey were "extremely exciting" given the strength and size of the chargeability anomaly, interpreted to be due to sulphides associated Round Mountain-style gold mineralisation, which the company has been targeting in its recent exploration work.
He said: “Astro has contacted a US diamond drill company to commence drilling to test this exciting prospect as soon as possible once all approvals have been received.
“The Astro board believes the Needles Gold Project represents a prime opportunity for the discovery of significant gold deposits and we look forward to reporting our results to the market as we progress our activities in this highly prospective area.”
Further 2021 drilling
The IP anomaly constitutes the main target for Astro’s 2021 drilling campaign and will initially be tested with an inclined diamond drill hole into the centre of the anomaly.
An additional hole will test the Tomahawk mine site area just to the southeast of the centre of the IP anomaly.
Drill site locations are near existing tracks, facilitating ease of access.
Work on a Plan of Operation to be presented to the Bureau of Land Management (BLM) has started, aiming to ensure that a more extensive drilling program can be undertaken should results from the planned 2021 drilling be successful.
Astro plans to commence drilling in the third quarter of 2021, subject to rig availability and BLM approval.