AAR reports further high-grade intercepts, confirm the potential of Mandilla

Anglo Australian Resources NL (ASX: AAR) has announced a further encouraging update from the drilling at its Mandilla Gold Project in Western Australia.

The company reported outstanding new thick, high-grade gold intercepts from the Mandilla project.

Significant assays from 16 Reverse Circulation (RC) drill holes completed prior to Christmas include 45m @ 2.33g/t Au from 82m and 14m @ 1.85g/t Au from 42m; 21m @ 4.53g/t Au from 89m and 1m @ 48.13g/t Au from 192m; 42m @ 1.85g/t Au from 45m and 5m @ 1.79g/t Au from 97m; 41m @ 1.36g/t Au from 59m; 21m @ 2.39g/t Au from 85m and 18m @ 0.76g/t Au from 60m; 15m @ 3.47g/t Au from 54m, 14m @ 1.45g/t Au from 81m and 5m @ 2.95g/t Au from 14m; and 14m @ 3.18g/t Au from 31m.

Mandilla gold project

AAR’s 100%-owned Mandilla Gold Project is located in the northern Widgiemooltha greenstone belt in the western part of the Kalgoorlie geological domain in WA.

The Project lies on the western margin of a porphyritic granite intrusion, the Mandilla Granite. The Granite intrudes volcanoclastic sedimentary rocks in the Project area which form part of the Spargoville Group.

The two important prospects of the project are Mandilla South and Mandilla East Prospects. In 2006, Anglo Australian had mined the high grade Mandilla West paleochannel producing approximately 23,000 ounces of gold.

RC drilling at Mandilla East

The company had recently commenced an RC drilling campaign focused at or proximal to Mandilla East. The Mandilla East drilling was designed to in-fill the core of the historic resource area to a nominal 40m x 40m pattern and the test the zone along strike to the north.

The company reported that the results from sixteen RC holes have now been received.

High-grade, thick intercepts

The company announced that the RC drilling at Mandilla has resulted in thick, high-grade intercepts.

Significant results include 45m @ 2.33g/t Au from 82m (including 1m @ 31.4g/t Au from 86m and 1m @ 45.7g/t Au from 97m) and 14m @ 1.85g/t Au from 42m (including 1m @ 8.8g/t Au from 54m) (MDRC152); 21m @ 4.53g/t Au from 89m (including 1m @ 24.7/t Au from 107m, 1m @ 40.6g/t Au from 113m & 1m @ 14.2g/t Au from 117m) and 1m @ 48.13g/t Au from 192m (MDRC166); 42m @ 1.85g/t Au from 45m (including 1m @ 23.5g/t Au from 84m) and 5m @ 1.79g/t Au from 97m (MDRC150); 41m @ 1.36g/t Au from 59m (including 2m @ 9.0g/t from 66m) (MDRC148); 21m @ 2.39g/t Au from 85m (including 1m @ 20.9g/t Au from 99m) and 18m @ 0.76g/t Au from 60m (MDRC146); 15m @ 3.47g/t Au from 54m (including 1m @ 31.3g/t Au from 64m), 14m @ 1.45g/t Au from 81m and 5m @ 2.95g/t Au from 14m (MDRC167); and 14m @ 3.18g/t Au from 31m (including 1m @ 16.7g/t Au from 31m and 1m @ 23.1g/t Au from 40m) (MDRC149)

The drill hole MDRC143 is the southern-most RC hole drilled to date and demonstrates that gold mineralisation remains open in this direction.

Diamond drilling at Mandilla

AAR reported that the initial diamond tail (MDRC165), drilled from 150m to a depth of 283m down-hole, is yet to be logged and submitted for assay.

The company said that the visual inspection of the core showed variably spaced quartz veining and pyrite typical of the Mandilla mineralisation.

Drilling at other zones

The company said that two RC holes tested the Mandilla West zone, MDRC169 which returned 5m @ 1.07g/t Au from 48m, and MDRC164 which hit 14m @ 1.39g/t Au from 55m depth.

AAR also reported that three RC holes (MDRC159, 160 and 162) tested the Mandilla East Northern Extension zone, however, the subsequent 3D interpretation of the lode orientation suggests that the holes may have been collared too far to the east.

Updates and next steps

AAR reported that an active exploration drilling programme comprising RC and diamond drilling is planned for the first quarter of 2020.

Diamond drilling: The company said that the diamond tail holes are designed to extend the East Zone mineralisation to a depth of 200m. Two holes remain outstanding from this programme.

RC drilling: AAR reported that the planned RC drilling will test the key gold anomalies defined during the October 2019 shallow RC programme.

These include the northern extension of Mandilla East zone over a strike length of some 400m, the new 800m long southern extension of the Mandilla West zone on initial 160m spaced sections, and moderate gold anomalism in de-magnetised syenite identified to the south-east of Mandilla East zone.

The company said that further work to fully define the Mandilla East zone mineralisation on 40m x 40m spacing will also be undertaken.

Pending drilling: AAR reported that in total, 27 RC and two diamond tail holes remain to be drilled from the programme commenced in late 2019.

The company reported that further drilling is expected following the completion of the current programme, with the objective of substantially increasing the resource base at Mandilla East and delineating additional resources within the project.

AAR said that the database compilation and validation is also ongoing.

Management comments

AAR’s Managing Director Marc Ducler said: “These exciting new results provide further support for our belief that we have a substantial gold discovery on our hands at Mandilla, right on Kalgoorlie’s doorstep.

The in-fill drilling completed recently at Mandilla East has consistently intersected thick, high-grade zones from close to surface.

The drilling continues to validate what appears to be a significant, large-scale gold system and our team is excited by the prospect of continuing diamond and RC drilling to prove how big Mandilla East can be.

With our ongoing geological interpretation and the imminent recommencement of diamond and RC drilling, we are confident we will be able to further improve our understanding of the mineralised system at Mandilla and our future drill targeting.

Additionally, we would like to develop a better understanding of how the cross-cutting structures and the de-magnetised syenite influence the gold mineralisation.

This knowledge will not only assist Anglo Australian to drill out Mandilla East but will also be applied to targeting within the large (4km long) mineralised trend which includes Mandilla West, the Mandilla East northern extension and Mandilla South.”

Written By Jonathan Norris
Jonathan is a founder of Mining.com.au and has been covering the resources industry since 2018. With over 17 years experience in print, broadcast and online media, Jonathan has seen first hand the transformative effect of online niche media.