Firefly Resources Drilling Enhances Melville Gold Deposit

THE DRILL SERGEANT: Firefly Resources (ASX: FFR) reported initial assay results from a recent grade control drilling program undertaken within the company’s 100 per cent-owned Yalgoo gold project in Western Australia.

Firefly Resources completed the drilling on the Melville gold deposit where it had recently announced a JORC 2012-compliant Indicated and Inferred Mineral Resource Estimate of 196,000 ounces, from which it immediately launched into a close-spaced grade control program to follow up on the broad, shallow mineralisation observed in the deeper resource-focused drilling.

Assay results include:

8 metres at 3.39 grams per tonne gold from surface, including 2m at 8.79g/t gold;

7m at 3.08g/t gold from surface including 3m at 7.24g/t gold; and

8m at 1.48g/t gold from surface including 3m at 2.75g/t gold.

Firefly said the assays it has had returned so far have confirmed the presence of an extensive blanket of shallow gold mineralisation extending over 100s of metres both along and across strike above the primary Mineral Resource.

“The assays received so far from the Grade Control drilling further reinforce the strength, quality and tenor of the shallow gold mineralisation at the cornerstone Melville deposit, which sits within the shadow of several regional processing plants,” Firefly Resources managing director Simon Lawson said in the company’s ASX announcement.

“Shallow, high-grade gold mineralisation has been delineated over 100s of metres both along- and across strike and from surface in many of our drill-holes, really driving home the opportunity not just at Melville but potentially across our other target areas across the extensive Yalgoo gold project.

“In many gold deposits, the shallow material overlying the primary Mineral Resource is considered to be waste and is removed returning little economic value.

“In the case of Melville, virtually the entire blanket of shallow material is mineralised, in some cases with some impressively high-grade zones – albeit interspersed with lower grade areas.

“It’s also important to note that drilling deliberately tested the margins of the resource to help close off the mineralisation in these areas for the purposes of future open pit mine designs.

“We are focused on delivering value from all the key targets within the Yalgoo project and we started that journey with the recent release of a maiden JORC-2012-compliant MRE for Melville, where 80 per cent of that resource was classified as higher confidence Indicated ounces.

“These Grade Control results build on that resource by focusing on near-surface ounces that would likely be mined first in any open-pit mining scenario.

“We will provide an independently reviewed JORC 2012-compliant MRE for those shallow ounces once we get all of the assays back and collate the results.”