THE BOURSE WHISPERER: Octagonal Resources (ASX: ORS) has received the results of underground sampling it recently carried out at the Nuggetty Reef gold mine, located 2.5 kilometres northwest of the company’s Porcupine Flat gold processing plant in Central Victoria.
Octagonal undertook sampling of a 92 metre long drive accessed from the Nuggetty Reef adit, which it said has returned a peak assay result of 48.4 grams per tonne gold.
Sampled Nuggetty Reef Mine drive. Source: Company announcement
Five metre spaced channel samples collected from across the unmined quartz vein in the roof of the drive averaged 4.8g/t gold and the walls of the drive averaged 4.1g/t gold.
These results include 33m grading 8.2g/t gold in the roof of the drive, 20m grading 8.9g/t gold in the east wall of the reef, and 12m grading 11.1g/t gold in the west wall of the reef.
The company indicated it is currently in the process of applying for regulatory approval to mine a trial parcel of ore in the area recently sampled to confirm the grade of gold mineralisation and justify an ongoing underground mining operation.
The Nuggetty Reef mine was historically the second largest and highest grade gold producer in the Maldon Goldfield producing 301,000 ounces of gold from 50,000 tonne of ore at an average grade of 187g/t gold.
The mine was operated between 1856 and 1866 and at this time was thought to have had a lower cut-off mining grade of between 15g/t gold and 23g/t gold.
Octagonal is investigating the potential of the Nuggetty Reef mine workings to contain remnant gold mineralisation amenable to underground mining and processing at Porcupine Flat.