New Murchison Gold believes gold mineralisation extends “well below” the existing open pit at its Crown Prince mine with the Garden Gully gold project in Western Australia.
These insights are derived from recent diamond drilling targeting mineralisation in the south-eastern and northern zones of mineralisation outside the current mineral resource estimate.
A significant intersection included 3m at 43.10 grams per tonne (g/t) gold from 245m, including 1m at 69.4g/t gold, located 75m below the base of the Crown Prince pit design. The company said this hole adds to the confidence of mineralisation in the central part of the south-eastern zone.
Another drillhole returned a wide and relatively continuous intersection of 36.3m at 2.22g/t gold from 367.5m.
The company said this intersection was considered “highly encouraging” as the Crown Prince south-eastern zone structure is strongly persisting at depth, and this hole was the deepest drilled into the south-eastern mineralised structure so far.
New Murchison Gold chief executive officer Alex Passmore said the intersections expanded the underground mining potential of the Crown Prince mine.
“The high-grade results we are reporting today are from outside the existing resource which is likely to give good extensions to the resource inventory in these areas,” he said.
The company said open pit mining was progressing well with ore deliveries to Westgold Resources’ Bluebird gold processing plant on track for commencement in September.
New Murchison said near mine drilling was also being undertaken, with satellite deposits being investigated as potential future development options.
The company is working on a resource update and underground feasibility study to underpin the future of mining at Crown Prince well beyond the current 30-month open pit mine life.
New Murchison finalised an ore purchase agreement for its Crown Prince deposit with Big Bell Gold Operations, a wholly owned operating subsidiary of Westgold Resources, in April.
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