Dacian Gold confirms high-grade shoot at Westralia

THE DRILL SERGEANT: Dacian Gold (ASX: DCN) recently completed broadly-spaced diamond drilling at the Westralia deposit, part of the company’s Morgans gold project, located in the Laverton District of Western Australia.

According to Dacian the drilling intersected additional high-grade gold mineralisation within the interpreted Millionaires Shoot.

Three holes were completed and results include:

13MMRD021
4 metres at 21.9 grams per tonne gold from 490 metres, including 1 metre at 48.8g/t gold from 493 metrs;

13MMRD020
4.6m at 4.2g/t gold from 519m; and

13MMRD022

5m at 1.8g/t gold from 468.8m.

 

Westralia deposit showing mine workings, target horizon and Dacian intersections. Source: Company announcement

 

The company explained the intersections lie directly down plunge of and correlate with high-grade mineralisation it had intersected and reported earlier this year.

Dacian consider the results to have confirmed the continuity of a high-grade shoot developed immediately below the south end of the Westralia pit over a vertical distance of approximately 500m and a strike length of approximately 200m.

The new shoot is additional to the current 364,000 ounce Mineral Resource reported at the deposit.

A revised Mineral Resource estimate for the Westralia deposit is currently being prepared, which Dacian anticipates to be reported before the end of the year.

“These latest high grade results from Westralia add to our confidence that we have defined a substantial new lode position at Westralia,” Dacian Gold managing director Paul Payne said in the company’s announcement to the Australian Securities Exchange.

“We anticipate a major upgrade to the Mineral Resource at Westralia which will form the basis for a preliminary mining study at the deposit commencing in 2014.”

Three historic holes had been drilled into the shoot up to 300m beneath the Dacian drilling.

The deepest of those intersected 11.87m at 8.6g/t gold from 568.9m or approximately 530m vertical depth.

It was interpreted that the high grade in that hole represented the depth extension of the Millionaires Shoot.

To test for continuity of the shoot extension, Dacian completed the recent drilling of a further three drill holes, all of which intersected the target BIF horizon and two of the holes returned the high-grade gold intersections mentioned above.

The company believes the results in 13MMRD020 and 13MMRD021 confirm the main part of the shoot displays continuity of high-grade gold mineralisation within a highly continuous BIF sequence.

The third intersection, in 13MMRD022, has been interpreted to be near or at the northern margin of the shoot, with a lower tenor of mineralisation.

The extension of the shoot defined by the Dacian drilling is south of the limit of historic mining and lies outside of the existing 364,000 ounce Mineral Resource.

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