THE DRILL SERGEANT: Stavely Minerals (ASX: SVY) reported further strong assay results from drilling at the Cayley shallow high-grade copper-gold discovery deposit withing Thursday’s Gossan prospect, part of the company’s 100 per cent-owned Stavely copper-gold project in Victoria.
Stavely Minerals has long considered there to be at least two parallel zones of higher-grade copper-gold-silver mineralisation located close to surface within the chalcocite-enriched blanket that hosts the Stavely project’s current 28 million tonnes at 0.4 per cent copper Inferred Mineral Resource.
The company’s interpretation of previous drilling has been drilling targeting the Cayley Lode would begin to encounter the parallel Cayley Lode Splay (CLS) at shallow depths as it progressively advances to the west.
The recent drilling appears to have done just that, encountering a very broad zone of copper mineralisation, including a shallow 18 metres intercept in the interpreted near-surface position of the parallel Copper Lode Splay (CLS).
299.7 metres at 0.4 per cent copper from 35m down-hole, including 64m at 0.68 per cent copper from 35m, including 18m at 1.11 per cent copper from 36m in the interpreted Copper Lode Splay; and
30.1m at 1.44 per cent copper, 0.21 grams per tonne gold and 4.4g/t silver from 304.6m in the Cayley Lode, including 4m at 3.17 per cent copper, 0.26g/t gold and 7.5g/t silver.
“The Cayley Lode continues to deliver consistently good widths of high-grade copper, gold and silver mineralisation with some excellent new high-grade results from the south-eastern end in holes 94, 95, 96 and 97,” Stavely Minerals executive chairman Chris Cairns said in the company’s announcement to the Australian Securities Exchange.
“For some time, we have been predicting that, as the collars of drill holes testing the Cayley Lode mineralisation at increasing depths migrate further west, the upper portions of these drill holes should start to intercept the inferred near-surface position of the Copper Lode Splay.
“The identification of the Copper Lode Splay close to surface may have significant implications for the scale of a potential Phase 1 open pit development.
“Clearly there is a great deal of drilling to be done to confirm this potential, but we do now have the funding available to pursue this opportunity aggressively.
“These multiple lode intercepts really highlights that we have a large amount of drilling to do before we get to the position of detailed studies, and we must caution that there is no guarantee of a positive economic outcome when we do.
“However, we need to be thinking of the potential scale of the system as it becomes better drill defined and what that could translate to as a development proposition.
“The potential for additional near-surface lodes could add to that in a meaningful way, not to mention what additional lodes at depth may mean for a possible Phase 2 underground.
“In addition to completing the drilling required for a maiden JORC Mineral Resource estimate later this year, we are also commencing various ancillary programs including metallurgical test-work, environmental monitoring and groundwater monitoring that will provide critical information to the various stages of future development studies.”
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