Mithril Resources drilling at Spargos Reward gold mine
THE DRILL SERGEANT: Mithril Resources (ASX: MTH) has kicked off a 1,300 metre Reverse Circulation drill program to test the extensional potential of the company’s Spargos Reward gold mine.
The company has a second drill program to test regional targets south of the mine planned to commence in early 2013.
The drilling follows the acquisition of the gold mine and surrounding tenements by Mithril for $200,000 in cash.
The project is located 25 kilometres west of Kambalda in the Eastern Goldfields of Western Australia, 16km north along strike from the operating Wattle Dam gold mine of Ramelius Resources (ASX: RMS).
Spargos Reward location plan. Source: Company announcement
“The commencement of drilling on the newly acquired Spargos Reward gold project represents a new strategic focus for Mithril, and the work compliments exploration activities also being carried out on the company’s Illogwa IOCG Area in Central Australia,” Mithril Resources managing director David Hutton said in the company’s announcement to the Australian Securities Exchange.
“Results from the current near – mine program are anticipated by mid – January 2013, and Mithril looks forward to informing the market at that time.”
Spargos Reward was previously mined to a vertical depth of 120m (underground and open pit) with total production of approximately 29,257 ounces at 8 grams per tonne gold.
Mithril explained that mineralisation occurs within two parallel shear zones (the Western and Main Lodes) which have been previously drilled on 25 – 50 metre spaced sections throughout the mined area to an average depth of 140m.
The company said geological modelling indicates potential to extend the deposit at depth and along strike as only broad spaced drilling has been completed outside the mined area by previous explorers.
Mithril is using the current drill program to test both the continuity of mineralisation between existing drill intercepts and confirm the extensional potential of both the Western and Main Lodes.