Larvotto Resources Commences Hillgrove Exploration Drilling

THE DRILL SERGEANT: Larvotto Resources (ASX: LRV) is all cashed up and ready to commence exploration drilling at the company’s Hillgrove gold-antimony project in New South Wales.

Larvotto Resources will pay for the drilling using funds from a recently completed $5 million equity raising, which it expects to supplement with a further $1 million via a share purchase plan.

The drilling is to focus on the project’s Clarks Gully deposit, a steep dipping zone of mineralisation associated with both high-grade gold and antimony that remains open in all directions.

Clarks Gully mineralisation is currently defined from surface to a depth of 200m with a current Measure and Indicated Mineral Resource Estimate of 266,000 tonnes at 3.8 per cent antimony and 2 grams per tonne gold (8.4 g/t gold equivalent).

The drill program aims to extend previous drilling to test the strike and depth extent of the mineralised zone that is expected to increase Larvotto’s confidence ahead of Ore Reserve estimation studies.

Larvotto’s exploration strategy is to rapidly increase the Hillgrove Resource base, while converting the current Measured and Indicated MRE into JORC Ore Reserves.

“The Clarks Gully deposit extends from surface and remains open at depth,” Larvotto Resources managing director Ron Heeks said in the company’s ASX announcement.

“It currently has a M+I Mineral Resource Estimate (MRE) with high-grade ore suited to both open pit and underground extraction.

“Favourably, it has potential for early-stage development which could supplement production from the already developed Metz underground mining area to the south.

“Significantly, the mineralisation is open in all directions and there is great potential for it to extend to depth as all of the other deposits in the field do.

“Soil geochemistry strongly indicates that the mineralisation extends to the south of the previously mined open pit and initial testing of the area is included as part of this program.

“The geochemical anomaly is of the same order as that over the current deposit and has the potential to significantly increase the overall resource at Clarks Gully.

“We look forward to demonstrating the current mineralisation extends in all directions and continues to contain significant mineralisation.”