Excelsior Gold hits broad high-grade gold at Lady Kelly

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THE DRILL SERGEANT: Excelsior Gold (ASX: EXG) has received results from the first phase of shallow drilling (less than 50m downhole) to have been completed at the Lady Kelly prospect within the company’s Kalgoorlie North gold project.

The drilling returned high-grade results, which Excelsior consider to highlight the exploration upside of the Kalgoorlie North gold project.

The company said it expects to add to project Resources and Reserves through small drilling campaigns in the remaining 17 of 22 resources areas not included in the initial mining plan.

Intercepts from the drilling identified zones of high-grade (greater than 5g/t) gold mineralisation, including:

KNC150020
7 metres at 17.9 grams per tonne gold from 35m to end of hole, including 2m at 51.4g/t gold from 35m; and

KNC150022
3m at 5.11g/t gold from 15m, including 1m at 14.1 g/t gold from 15m.

The latest results come from ten holes (KNC150020-KNC150029) Excelsior has drilled as part of a short program of 20 holes within the Greater Bulletin Area, which has been designed to delineate the geological controls of the gold mineralisation within the area.

“Lady Kelly is just one small area of drilling which lies approximately 250 metres north-west of the Bulletin South deposit where a number of sub-parallel north-west shear structures can be mapped hosting high-grade gold veins,” Exdcelsior Gold said in its ASX announcement.

“Larger stock-work targets similar in style to Bulletin South are predicted to occur at the intersections with the north-east trending structures.

“Historical drilling in the Greater Bulletin Area has returned numerous significant results from less than 50 metres downhole not only demonstrating the potential to increase current resources and reserves in the short-term but also the potential for a much larger discovery.”

Current JORC 2012 Indicated and Inferred resources for the area stand at 1.12 million tonnes at 1.85g/t gold for 66,900 ounces within the Bulletin South and Better News deposits.

An initial Ore Reserve of 0.46 million tonnes at 2.1g/t gold for 31,600 ounces is established at Bulletin South, which the company expects to expand following recent drilling carried out beneath the current pit design that intersected strong gold mineralisation.

Website: www.excelsiorgold.com.au