Auteco Minerals Ltd’s (ASX:AUT) (OTCMKTS:MNXMF) strategy to upgrade and grow the 1-million-ounce inferred resource at its Pickle Crow Gold Project in Canada continues to deliver strong results with the discovery of more high-grade mineralisation.
Recent drilling has identified more high-grade gold veins which will form part of the new resource estimate set to be completed this quarter.
The intersections in these new veins in the Shaft 3 area include:
- 0.3 metres at 315.4 g/t gold from 41.7 metres;
- 1-metre at 34.9 g/t from 191.2 metres;
- 1.2 metres at 29.7 g/t from 249.7 metres;
- 2.3 metres at 7.8 g/t from 39.8 metres;
- 0.5 metres at 33.7 g/t from 302.2 metres; and
- 4 metres at 3.6 g/t from 432 metres.
Additionally, step-out drilling in the Shaft 3 area has extended the known mineralised vein structures with results including:
- 0.6 metres at 313 g/t from 338.8 metres (~20-metre extension to known vein);
- 5 metres at 9.5 g/t from 46.2 metres (~120-metre extension to known vein);
- 1.5 metres at 19.3 g/t from 250.5 metres (~20-metre extension to known vein);
- 1.6 metres at 6.1 g/t from 168.5 metres (~80-metre extension to known vein);
- 1.2 metres at 11.9 g/t from 382.1 metres (~160-metre extension to known vein); and
- 1.2 metres at 8 g/t from 459.6 metres (~70-metre extension to known vein).
Focus on areas of known mineralisation
As part of its strategy, the company will now focus much of its drilling on areas of known mineralisation to bring them into the resource model and is on track to complete the updated resource by June 30, 2021, with results planned for release in July 2021.
Auteco executive chairman Ray Shorrocks said: “These results show that our strategy to grow the 1-million-ounce inferred resource is on track.
“We are discovering new high-grade veins and extending the known size of those we found earlier.
“These results will form part of the resource update set for completion in this quarter.
“As part of our growth strategy, we are now putting a strong emphasis on drilling within areas of known high-grade mineralisation to bring them into the resource model.
“These areas are exciting because we have already established the presence of high-grade mineralisation and we just need to confirm its continuity in order to include it in the resource.”
Plan View of Shaft 3 drilling area highlighting location of recent drilling.
Growth and exploration program
Auteco has a detailed and systematically phased strategic plan for FY21 designed to unlock the potential of the Pickle Crow deposit.
A 45,000 metres drill program is underway with the key objectives of:
- Extending and discovering mineralised vein structures proximal to historic workings and outside of the current inferred resource;
- Infill drilling of newly extended or discovered vein structures, with the aim of delivering an updated mineral resource estimate by June 30, 2021; and
- First-pass testing of regional drill targets away from the main Pickle Crow deposit.
To date, a total of 120 diamond drill holes for 31,160 metres have been completed, with results expected in the June quarter.
Auteco is fully funded to continue its resource growth strategy with $29.6 million cash on hand on December 31, 2020.
The forward work plan for the Pickle Crow will focus on the following key areas:
- Infill drilling: The initial phase of extension drilling is nearing completion. Drilling will transition to inferred resource definition on select structures with up to four drill rigs to be utilised in April-May to complete this work;
- Regional exploration: Work will commence in April with up to two drill rigs set to test regional drill targets away from the main Pickle Crow deposit;
- Mineral resource update: A mineral resource update will be prepared with the date of the estimate scheduled for June 30, 2021; and
- Infrastructure Assessment: Engineering firms will be engaged to assess the condition and potential re-start capital required for the on-site processing plant, in addition to capacity expansion options.
The company recently met the JV earn-in expenditure requirement to earn 51% of the project and now has capacity to earn up to 80% of the project.
Current planned expenditure should see the 80% milestone achieved by the end of 2021.