Excelsior Gold delivers Better News drilling results

THE DRILL SERGEANT: Excelsior Gold (ASX: EXG) has completed its first phase of shallow drilling (less than 50m downhole) at the Better News prospect, located within the company’s Kalgoorlie North gold project.

Excelsior Gold said the drilling returned intersections, which confirm and enhance the mineralisation identified by historical drilling in the area.

According to the company, the Better News resource area was recognised and drilled in the mid 1980`s down to a maximum 80 metre vertical depth.

The gold mineralisation comes to the surface and was previously mined by shallow workings.

Excelsior has compiled a 2012 Inferred JORC mineral resource of 360,000 tonnes at 1.49 grams per tonne gold for 17,300 ounces of gold from the historical drilling data.

A subsequent preliminary mine optimisation study by Excelsior Gold based on this inferred resource model suggests that a portion of this resource may have the potential to be economically mined via open-pit.

To confirm the validity of the historical drilling, Excelsior completed a further six holes (KNC15034 – KNC15039).

Drill results included:

KNC15035
5 metres at 1.89g/t gold from 23m;

KNC15035
1m at 9.27g/t gold from 33m;

KNC15036
15m at 3.27g/t gold from 18m;

KNC15036
2m at 12.3g/t gold from 18m; and

KNC15038
4m at 3.5g/t gold from 22m.

“Results from this drilling confirm the current resource model interpretation of the gold mineralisation and validate the locations and the tenor of the historical drilling,” Excelsior Gold said in its ASX announcement.

“The new drilling data will be incorporated into the resource model to facilitate the definition of Indicated Mineral Resources and mining studies to establish open pit Ore Reserves.

“The gold mineralisation remains open along strike to the north and the south and also at depth.

“Further drilling will be planned to scope out the extent of the mineralisation outside the current mineral resource.”

Website: www.excelsiorgold.com.au