Mithril Resources identifies new gold zone at Spargos Reward
THE DRILL SERGEANT: Mithril Resources (ASX: MTH) has received positive results from a recently completed drilling program conducted at the company’s wholly-owned Spargos Reward gold mine, located approximately 30 kilometres west of Kambalda in Western Australia.
Mithril said the latest drilling has identified a new gold zone – named the Evans prospect – immediately south of the mine.
The company drilled three reverse circulation holes on two adjacent 100-metre spaced sections to test the significance of two historical drill intercepts beneath a 700-metre north-south trending surface anomaly 3.3 kilometres south of Spargos Reward.
On both sections, the drilling intersected a steeply dipping zone; the company considers being visually identical to Spargos Reward.
The zone is gold bearing with better results including (down hole widths):
– 3 metres at 0.95 grams per tonne gold from 46 metres;
– 1m at 1.03g/t gold from 70m and 3m at 0.95g/t gold from 99m; and
– 1m at 1.99g/t gold from 30m.
Mithril Resources managing director David Hutton said he was encouraged by the new results as they reinforce the potential of the broader Spargos Reward area.
“Our geological team has done a great job to identify new target areas outside of the mine and we look forward to further success at the Evans prospect,” he said.
Spargos Reward gold mine long section. Source: Company announcement
Mithril considers the results to be of some significance as they are equivalent to others it has achieved within 100m of high-grade gold mineralisation at Spargos Reward.
Because the prospect has undergone limited drilling so far, Mithril is of the opinion potential exists to find new occurrences of higher grade gold at Evans.
The company is currently working on a resource for the Spargos Reward gold mine, which it anticipates to be ready by the September Quarter 2013.
It is concurrently working to generate further targets surrounding the mine area.
These targets along with the newly-identified Evans prospect will be further assessed through ground follow-up and prioritised for the company’s next phase of drill testing.