MOD drills up further encouragement at Sams Creek

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THE DRILL SERGEANT: MOD Resources has received further encouraging assay results from the company’s initial 2,000 metre diamond drilling program at its Sams Creek gold project.

Mod claims the Sams Creek project, located at the northern end of the South Island of New Zealand, to be the country’s biggest undeveloped gold project.

Best results from the recent drilling included:

–    35 metres at 1.85 grams per tonne gold;

–    29m at 2.23g/t gold, including 10m at 4.27g/t gold from 142m;

–    9m at 3.17g/t gold and 12m at 2.11g/t gold; and

–    7m at 1.17g/t gold from 242m to 249m.

MOD is earning up to 80 per cent of the Sams Creek gold project from OceanaGold Corporation by undertaking sole-funding staged exploration programs.

 

Source: Company announcement

 

The 2,000m drilling program is the first conducted at Sams Creek since 2004.

MOD hopes to build on the existing JORC-compliant Inferred gold resource at Sams Creek of 770,000 ounces based on 13.5 million tonnes grading 1.78g/t gold.

The existing 770,000oz resource is all estimated within the Main Zone prospect at Sams Creek, which covers 600m of the known six kilometre strike length within the permit.

“The known gold mineralisation at Sams Creek is contained within a porphyritic felsic dyke up to 40 metres thick that intrudes a metasedimentary rock sequence,” MOD Resources said in its ASX announcement.

“The dyke dips to the north at 60 degrees and can be traced over six kilometres along strike within the permit and at least one kilometre down dip, where it remains open.

“The 2,000 metre diamond drilling program will also assist the company in better defining the east and west margins of the Main Zone mineralisation and to further test grade continuity by intersecting the mineralised ladder veins at a high angle by drilling down the centre of the dyke.”

MOD said it remains on schedule to complete its initial 9 hole drilling program at Sams Creek by the end of March 2012.

All drilling is being conducted in the Main Zone.