THE DRILL SERGEANT: Echo Resources (ASX: EAR) declared early success from the current exploration program being undertaken on the Yandal greenstone belt in Western Australia.
Echo Resources explained the Yandal program is aimed at building a global gold Resource and Reserve base to underpin re-start of the company’s Bronzewing processing hub.
Echo explained the drilling being carried out in the Empire District initially targeted the Orpheus gold prospect located eight kilometres south of the Julius gold deposit.
The drilling has demonstrated gold mineralisation remains open to the north and south with intersections to date including:
19 metres at 1.32 grams per tonne gold from 52m, including 8m at 2.38;
4m at 9.37g/t gold from 56m;
8m at 3g/t gold from 48m;
32m at 0.8g/t gold from 32m;
8m at 5.23g/t gold from 48m; and
16m at 1.81g/t gold from 68m.
“First results from this large exploration program are highly encouraging and have demonstrated that gold mineralisation at Orpheus extends over more than 800 metres of strike,” Echo Resources CEO Simon Coxhell said in the company’s announcement to the Australian Securities Exchange.
“The system remains open to the north-west and south-east and further drilling to expand the known gold mineralisation is planned in the coming weeks.
“These results support Echo’s ability to expand its Resource and Reserve base with an active exploration program ongoing.
“Over the past 12 months we have collated and compiled all available geological and geophysical data to interpret and understand regional controls on gold mineralisation.
“This work has defined a number of targets considered highly-prospective for new million-ounce gold deposit.”
Echo Resources outlined its exploration program to be focussed on building Reserves across the company’s Yandal landholding to provide sufficient mine life to support a decision to mine.
Echo believes it can quickly move to production utilising its key infrastructure asset, the 2 million tonnes per annum Bronzewing processing hub, which a bankable feasibility study has confirmed can be refurbished and operational in less than six months from a decision to mine for a capital outlay of $12.5 million.