THE INSIDE STORY: Draig Resources (ASX: DRG) has changed its name to Bellevue Gold Limited (ASX: BLG).
Tha change follows Draig’s early exploration success at its Bellevue gold project that has the company to sustain and repeat its efforts.
Late last year, Draig Resources announced discovery of the Tribune Lode at the Bellevue gold project, located 400 kilometres north west of Kalgoorlie in Western Australia.
The Bellevue gold mine was once one of Australia’s highest-grade historical gold mines producing approximately 800,000 ounces of gold at 15 grams per tonne gold over 100 years before closing in 1997.
Bellevue changed hands numerous times between some of the industry’s biggest-hitting companies yet very little modern exploration was undertaken as it never fell into their collective portfolio considerations.
Thus, Draig Resources became the first company to conduct any exploration work of note on the mine and surrounding area in the last 20 years.
After confirming historical intersections at Bellevue, Draig commenced drilling on the Tribune Lode, a Bellevue parallel structure located immediately to the west of the Highway Fault and about 300m to the west to the historic Bellevue underground mine.
The move paid off immediately making a new gold discovery with the first hole of the program.
Drillhole DRRC0024 was drilled in a relatively untested area situated mostly under the Western Mineralised Corridor shallow transported sand cover, returning assays including:
7 metres at 27.4 grams per tonne gold from 92m, including 5m at 37.5g/t gold from 92m.
Step-out extensional drilling confirmed the high-grade mineralised system to be extended to the south, at depth and down plunge.
Draig followed this result up in March and May this year with further Tribune discovery results from drilling focused on preparing the estimation of a maiden Resource, infilling to a regular 80m by 40m grid pattern over the tested 550m of strike.
Additional work, including follow up DHEM target plates from the first pass exploration holes also produced highly-encouraging results.
The drilling and subsequent DHEM work demonstrated Draig was be looking in the right area by detecting several new high-grade ore shoots, all of which lifted the overall exploration potential of the strike extensions.
Results from the follow-up drilling for the first half of this year included:
2.5m at 29g/t gold from 147.5m and 3.8m at 5.2g/t gold from 133m;
9m at 5.4g/t gold, including 2m at 15.2g/t gold from 375m (The deepest hole drilled to date at Tribune Lode showing remains open);
7m at 7.2g/t gold, including 2m at 17.8g/t gold from 288m (the most southern hole drilled to date at Tribune lode showing remains open);
2.4m at 16.6g/t gold from 102m downhole;
4.1m at 6g/t gold from 92.5m downhole;
4.4m at 13.5g/t gold from 306m downhole (NEW SHOOT POSITION identified from DHEM);
9.5m at 5g/t gold, including 2.6m at 12.7g/t gold from 326.5m (NEW SHOOT POSITION identified from DHEM); and
2.3m at 8.2g/t gold from 53.7m and 0.3m at 31.8g/t gold from 64.9m and 2m at 9.3g/t gold from 92m downhole;
Further scout drilling conducted 160m to the north of the drill grid resulted in two holes intersecting Tribune style shearing and veins.
Results for these were pending at time of writing, however while the intersections didn’t demonstrate any noteworthy sulphide mineralisation, follow up DHEM indicated highly conductive plates as off hole conductors providing Draig with new shallow and high priority drill targets.
“We announced the Tribune discovery hole in December 2017 and, taking the Christmas break in to consideration, just five months later we are looking at coming out with a maiden Resource,” Draig Resources executive director Steve Parsons told The Resources Roadhouse.
“We are also very excited with our second target – the possible extension of the historic Bellevue Lode that results indicate we may have encountered already, again with our first drill hole into this new target.”
Draig completed its first deeper drill hole at the Bellvue gold mine designed to test the area known as the ‘Gap’ targeting the offset and extension of the historic high-grade Bellevue underground mine Lode position.
The results showed the drilling had encountered a new high-grade mineralised gold zone, returning assays of:
4.3m at 8.8g/t gold, including 3.4m at 10.4g/t gold from 576.2m; and
A secondary zone of 0.3m at 44.4g/t gold from 584.3m downhole.
Results were similar in widths and style of mineralisation to the historical Bellevue mine, which is not so surprising as existing Bellevue underground mine development is located only 190m from the mineralised drill intercept.
“The last few months have been a pretty exciting time for us, especially since the discovery of the new high-grade Tribune lode located just west of the old Bellevue gold mine,” Parsons said.
“We had spent time preparing to drill the deeper target below the Bellevue mine looking for the offset extension of that underground mine and we would have been drilling there earlier, except for the early success we had with the Tribune discovery.
“That was a most welcome distraction, however, once we finally got to drill at Bellevue, our first hole appears to have snicked, what we believe could be, the extension to the Bellevue Lode.
“The next couple of months will all be about conducting EM work and stepping out on this new lode.
“We will also be carrying out step-out drilling to the north and to the south of the Tribune discovery.”
Draig quickly commenced that step-out drill program looking to gain a deeper understanding of what it thinks could be a potentially abundant mineralised zone.
Activity on the project area is furious with diamond drilling testing the potential offset ore positions west the of the Highway Fault, and the Tribune Lode footwall potential ore positions.
On top of a recent $8 million raising to new institutional investors from Australia, Asia and North America and existing institutions and sophisticated investors, Draig has been allocated an EIS co-funding grant of $200,000 for a single drill hole to assist in this exploration.
Draig has identified the Western Corridor as a major exploration target and has deep diamond drilling planned to be followed up with DHEM to highlight potential ore positions.
Extensional diamond drilling at the Tribune lode is testing modelled DHEM conductors to the north of the existing mineralised extent as well as to the south towards Southern Belle target area.
Reverse Circulation (RC) drilling will infill the top 50m of the Tribune Lode to 40m by 20m centres ready for future economic extraction study work.
“Geological ore bodies are always more complicated than just identifying a straight line on a map,” Parsons said.
“Having said that, we hit the mineralised zone – and the exact target, our technical team had identified.
“So, if it looks like an apple and tastes like and apple it should be an apple, but we prefer to take a conservative approach and want to drill a few more holes so that we can be certain we have hit the Bellevue Lode.
“Once we have completed the extra drilling we should have a really good handle on what is going on.
“We are well on track for releasing our maiden Resource when we said we would and at this stage it is looking at being very good high-grade and, most importantly, open so we can expect to revisit that Resource in the second half of this year.”
Draig Resources Limited (ASX: DRG)
…The Short Story
Suite 3, Level 3
24 Outram Street
West Perth, WA, 6005
Ph: +61 8 6424 8077
Ray Shorrocks, Steve Parsons, Guy Robertson