MGT Resources completes Summer Hill Phase 2 drilling

THE DRILL SERGEANT: MGT Resources (ASX: MGS) has received results from Phase Two of its 2013 Summer Hills drilling program.

Summer Hills is the main tenement on the company’s Mt Garnet tin project, located south west of Cairns in far North Queensland.

 

The Mt Garnet project is only three hours drive southwest from
Cairns, within the historic Herberton Tin fields. Source: Company
announcement

 

The drilling was conducted with the purpose of expanding and updating the tin resources at both the Dalcouth and Extended prospects in order to provide feed for the Mt Veteran tin processing plant.
 
Both prospects are situated within two kilometres of the plant.

MGT owns 86.48 per cent of the Mt Veteran plant and the Summer Hills Mining Lease.

The company said the Phase Two drilling had produced better than expected results, including some of the best results it has achieved so far at Dalcouth.

Of the 23 holes drilled at Dalcouth, 17 intersected mineralisation above the cut-off grade.
 
Intervals of high-grade tin encountered at Dalcouth include:

–    4 metres at 2.24 per cent tin from 19 metres, including 1 metre at 5.88 per cent tin;

–    8m at 1.1 per cent tin from 11m, including 1m at 2.35 per cent tin;

–    8m at 0.56 per cent tin from 38m, including 1m at 1.09 per cent tin;

–    6m at 1.2 per cent tin from 42m, including 1m at 3.34 per cent tin; and

–    3m at 1.78 per cent tin from 16m, including 1m at 5.03 per cent tin.

“Not only are these high-grade results but the mineralised zone remains open in three directions and at depth, validating the decision to focus on Dalcouth as the first target within the Summer Hills mining lease,” MGT Resources executive chairman and managing director Jonathan Back said in the company’s announcement to the Australian Securities Exchange.

“The grades uncovered to date are extremely encouraging as one per cent tin is effectively equivalent to four grams per tonne of gold or intervals of three per cent copper in terms of value on commodities markets.

“The macro environment for tin is also improving with a rally in the tin price combined with the lower Australian dollar making the Summer Hills project look that much more attractive.”

MGT said Dalcouth remains open at depth to the southwest, along strike to the northwest and to the northeast is an apparent second parallel zone of tin mineralisation lying 30 to 50m to the northeast.

The company indicated Phase Three of its drilling program is already underway.