Latest drilling encouraging for Paynes Find Gold

THE DRILL SERGEANT: Paynes Find Gold (ASX: PNE) has received encouraging results from Stage 2 drilling conducted on the company’s 100 per cent-held tenements at Paynes Find in Western Australia.

The Stage 2 drilling was completed in early September, consisting 52 RC holes and six diamond drill holes, producing a total of 7,145 samples, including duplicates.

All samples have been assayed for gold, silver and copper, and all results have now been received.

The drilling campaign at Paynes Find returned the following results, including some which have been previously announced:

–    3 metres at 92.1 grams per tonne gold from 41 metres, including 1 metre at 271 grams per tonne gold;

–    12m at 6.61g/t gold from 10m, including 3m at 17g/t gold from 13m;

–    2m at 33.02g/t gold from 22m;

–    3m at 16.07g/t gold from 50m;

–    2m at 24.5g/t gold from 39m;

–    3m at 15.96g/t gold from 32m;

–    7m at 4.83g/t gold from 77m;

–    3m at 8.04g/t gold from 45m and 3m at 5.21g/t gold from 140m; and

–    4m at 6.28g/t gold from 79m and 6m at 3.56g/t gold from 120m.

Paynes Find said it is now refining the interpretation of the drilling results and building a geological model of the gold mineralisation known to date, which it expects will lead to the definition of additional drill targets.

 

Paynes Find cross section. Source: Company announcement

 

The company indicated more work is clearly justified to adequately assess the potential of the Paynes Find field as so far only about 5 per cent of the total area available has been explored for gold mineralisation.

Paynes Find is undertaking reviews of all available data and integrating the results of recent drilling to deliver an understanding of the controls on gold mineralisation at Paynes Find and then use this to locate economic zones of gold mineralisation.

“The key point to derive from the Stage 2 results is that they have now provided the economic and geological rationale to continue further drilling to assess the real potential of the tenements at large,”Paynes Find executive director Carl Popal said in the company’s announcement to the Australian Securities Exchange.

“The positive results have started to add real value, both existing and potential, to the company’s assets.

“The company is debt free with cash at hand, and supported by a highly regarded team of experts.

“Current and planned exploration activity is poised to significantly enhance the value of the Paynes Find Field especially in a market conducive to high gold prices and long term investment potential.”
 
Paynes Find said it is currently planning a short interim program, of around 15 holes of shallow RC holes into regional targets.

It is also reviewing requirements for a third phase drilling exercise in the New Year, based on outcomes from the review of current work and associated structural studies.

The third round of drilling is planned for Q1 2013.