THE INSIDE STORY: When you want to stand out in a crowd of your peers it is always wise to make an announcement that will pull the maximum amount of focus in your direction.
That’s exactly what Perth-based gold exploration play Gold Road Resources (ASX: GOR) did at the 2014 Diggers & Dealers Forum in Kalgoorlie.
Gold Road sent a buzz around the conference floor by announcing it had finalised the Maiden JORC 2012 Mineral Resource estimate for the Gruyere deposit, located on the company’s Dorothy Hills Trend at Yamarna, Western Australia.
The Mineral Resource for Gruyere came in at 96.93 million tonnes at 1.23 grams per tonne gold for a total 3.84 million ounces of gold.
To put these numbers in perspective it is worth noting the last gold discovery of a similar size to be made in Australia was seven years ago, which was the Tropicana discovery of Independence Group (ASX: IGO)/Anglogold Ashanti (ASX: AGG) Joint Venture.
“Obviously we all know how that has grown since then,” Gold Road executive chairman Ian Murray told The Resources Roadhouse on a site visit before the conference.
“These big deposits are becoming rarer and rarer to discover – globally”.
“But, from a Gold Road perspective – we own approximately 5,000 square kilometres of the Yamarna Belt and the Gruyere deposit is only one target within one of the Gold Camp Targets on the Belt”.
“We believe there are a lot more of these discoveries of this scale to be found within our tenements so we just have to keep doing what we have been doing and find more of them.”
There are other numbers that make the maiden 3.84 million ounce resource at Gruyere an even more remarkable achievement.
The company’s exploration team – led by exploration manager Justin Osborne – completed the estimate in only 9.5 months from the initial discovery on 14 October 2013.
At approximately 400,000 ounces per month – or approximately 100,000 ounces per week, Gruyere has a discovery cost of around $7 million – or less than two dollars per ounce.
When this Maiden Mineral Resource is combined with those of the company’s Central Bore and Attila‐Alaric deposits, it increases the Yamarna Belt’s gold endowment to over five million ounces.
“We will continue with our efforts to grow the Gruyere Maiden Mineral Resource, to find additional gold mineralisation along the Dorothy Hills Trend and to test the other Gold Camp Targets within the Yamarna Tenements, with the aim of unlocking the full gold potential within the Yamarna Belt,” Murray declared.
Staying true-to-form, Gold Road wasted very little time after the Diggers & Dealers Conference to announce results from a program of Aircore drilling at the Toto prospect, just three kilometres south of the Maiden Gruyere Resource and along the same geological trend.
The Aircore program was designed to test for indications of bedrock gold mineralisation and systems below Interface Geochemical anomalies Gold Road had defined earlier this year.
It didn’t disappoint and subsequently identified three new bedrock targets: Toto 1, 2 and 3.
The targets have a combined six kilometres of strike extent, which the Company intends testing with a program of Reverse Circulation (RC) drilling scheduled to commence in October 2014.
Toto 1 measures 2.2 kilometres north to south and up to 200 metres wide with geological and geochemical similarities to the Gruyere deposit.
Toto 2 measures 500 metres from north to south and 300 metres east to west, and is associated with gold anomalism on the margins of a structurally complex ‘Ziggy’ Monzonite unit.
Toto 3 measures three kilometres north to south and up to 300 metres wide, and is associated with gold anomalism coincident with a discrete magnetic low feature parallel to the trace of the main Dorothy Hills Shear Zone.
“That the Aircore drilling was able to so quickly identify three bedrock targets at Toto, less than three kilometres south of the 3.84 million ounce Gruyere gold deposit, has provided us with even more encouragement in regards to what we are yet to learn about this Trend,” Murray said.
“We consider these results to be further evidence the Dorothy Hills Trend is a fertile gold system, with more discoveries possible within this untested area”.
It would be fair to say Gold Road has developed an uncanny ability with the drill bit.
A second RC program at the Minnie Hill South prospect on the South Yamarna Joint Venture with Sumitomo ‐ confirmed a previously encountered high‐grade gold discovery.
This program is fully funded by Sumitomo as part of its earn‐in commitment under the terms of the JV.
The JV carried out an initial RC program at Minnie Hill South in April 2014, comprising six drill holes, from which anomalous gold mineralisation was reported in five holes with a best intercept of 12 metres at 4.65g/t gold from 135 metres.
A follow-up program of 23 RC holes was conducted between June and July 2014, which was designed to intersect the mineralised structure along strike and down dip of the earlier high‐grade results.
This drilling subsequently returned anomalous gold mineralisation in 12 of the 23 drill holes.
The new RC holes intersected the same differentiated dolerite package and associated mineralised shear system that had been encountered by the original discovery holes.
This, Gold Road determined, was confirmation the gold mineralisation extends over an area approaching one kilometre in strike length.
“It doesn’t get much better than seeing the first prospect tested with RC drilling, within the first Gold Camp Target to be tested in the South Yamarna JV area, has defined gold mineralisation within a very prospective differentiated dolerite over nearly one kilometre of strike and a down dip extent of up to 250 metres,” Murray said.
“This bodes very well for further drill testing of this prospect and other prospects in the South Yamarna JV.”
Gold Road’s intention is to further define the stratigraphy of the dolerite package at Minnie Hill South utilising geochemical and petrological sampling.
This is anticipated to assist in the identification of the dolerite’s internal zonation and its control on mineralisation, which in turn will enable specific targeting of particular prospective units during future drilling campaigns.
Gold Road is now considering drilling a diamond drill hole designed to intersect the entire stratigraphic sequence and dolerite zonation.
This could be carried out in late 2014 to provide some drill core to assist the company with these studies.
Not wanting to let the drill bit cool down, Gold Road completed a program of Regional Interface Rotary Air Blast drilling, which identified large areas of coherent gold anomalism throughout the Riviera‐Smokebush Gold Camp Target.
The RAB drilling identified multiple areas with prospective gold geochemistry, highlighting anomalies with gold grades greater than 10ppb with coincident elevated levels of pathfinder elements such as arsenic, molybdenum and copper.
The four strongest anomalies covered large areas of one kilometre by two kilometres with peak gold values ranging from 30 to 190ppb.
“A first pass regional sampling program identifying further large coherent gold anomalies in a new, untested Gold Camp Target is extremely encouraging,” Murray said.
“We are confident this could very well lead to further exciting gold discoveries within the Sumitomo funded South Yamarna JV area.”
Gold Road Resources Limited (ASX: GOR)
…The Short Story
22 Altona Street
West Perth WA 6005
Ph: + 61 8 9200 1600
Fax: +61 8 9481 6405
Ian Murray, Ziggy Lubieniecki, Russell Davis, Martin Pyle, Tim Netscher
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