Hargraves Project Update
HIGHLIGHTS
• Resource definition diamond drilling is underway on the Big Nugget Hill Central Zone to increase and upgrade resources between 150m and 300m below surface.
• Early logging indicates that the gold mineralisation continues at depth down the Big Nugget Hill structure.
• Approximately 800m has been completed to date in five extension holes.
• The program of eleven holes in the 1,750m program is expected to increase the Central Zone resource materially.
• Visible gold has been identified in three reef positions in HGAD02 in the Alma Zone, which is located in the Big Nugget Hill structure 1250m to the south of the Central Zone.
• Initial assay returns for the Hargraves drilling are expected within a few weeks.
In October 2010 an initial resource for the Big Nugget Hill deposit was announced with a total of 1.44mt at 5.1g/t containing 234,400 ounces to a depth of about 200m below surface.
A 1,750m diamond drilling program commenced at Hargraves on 8 November 2010 to test the deeper part of the Central Zone of the Big Nugget Hill Deposit between 150m and 300m below surface. Previous wide spaced holes indicated that the gold mineralisation extends to at least 400m depth and this program is expected to define material additions to the resource estimate.
The current program is expected to be completed in January 2011 and re-logging and sampling of some existing holes and those previously drilled in the Alma Zone will also be undertaken.
Five extension holes have been completed for 800m within the Big Nugget Hill fold axis position, where the gold mineralisation is most intense. The first assay results are expected within a few weeks.
The first hole, an extension of HGCD28, contained abundant visible gold in three significant reef positions between 270 and 320m depth. The second, an extension of HGCD29, traversed obliquely through the saddle position ending on the west limb, with at least ten reefs intersected with a thickness greater than one metre and containing abundant silicified chlorite and indicator minerals.
The Alma Zone is a group of old workings located in the Big Nugget Hill structure approximately 1250m to the south of the Central Zone. Five drill holes into the Alma Zone are being re-logged and sampled and visible gold was observed in three separate veins in HGAD02.
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