Mithril Resources identifies new gold targets
THE DRILL SERGEANT: Mithril Resources (ASX: MTH) recently completed a round of auger geochemical sampling at the company’s West Kambalda project, located approximately 30 kilometres west of Kambalda in Western Australia.
The company said the sampling had been successful in delineating new gold targets, which it considers to reinforce the prospectivity of the project area. Mithril collected a total of 857 auger samples during the recent program.
West Kambalda project area showing location of key targets, local infrastructure. Source: Company announcement
The company has combined the recent samples with historic auger sampling, which it claims provides complete surface geochemical coverage across all of the gold prospective areas to be identified over the project to date.
Four key target areas have emerged: Spargos Reward; Spargos South; Lady Allison; and Logan’s Find.
Mithril claims each of these targets contain multiple geochemical anomalies that either highlight existing bedrock gold mineralisation, or are new anomalies that have never been drill tested.
The strongest results were received from the Logan’s Find target where Mithril has extended an existing 1.5 kilometre-long anomaly along strike to over 4km in length.
“The anomaly (defined as above 50ppb gold with a maximum value of 219ppb gold) overlies a north-northwest trending belt of sheared and veined mafic-ultra mafic rocks, the central part of which is characterised at the surface by a series of shallow historic shafts and workings,” Mithril Resources said in its ASX announcement.
Mithril explained the new extensions to the anomaly are yet to be drill tested.
A series of 16 shallow (none below 50 metres) wide spaced holes were drilled in 1987 and 2004 throughout the central part of the anomaly.
Highlights from these programs included:
6 metres at 1.65 grams per tonne gold from 30 metres in 04HFRC005, including 2 metres at 3.08g/t gold from 32 metres;
3m at 2.81g/t gold from 20m in HFP-4, including 1m at 4.75g/t gold from 22m; and
3m at 2.7g/t gold from 41m in HFP-5, including 1m at 4.94g/t gold from 41m.
Mithril also conducted rock chip sampling within the central part of the anomaly – which it announced in October – returning results up to 11.1g/t gold.
The Logan’s Find target is situated within the Spargoville gold project which is subject to a Farm-in and Joint Venture Agreement with KalNorth Gold Mines (ASX: KGM).
Under the terms of the JV agreement Mithril can to earn up to an 80 per cent interest by completing expenditure of $2 million over 4 years.
Mithril said it is now reviewing each of the target areas in detail to determine its next steps, which it predicted may include further auger sampling, geological mapping and RAB / aircore drilling in 2014.
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