Alliance Resources Ltd (ASX: AGS) announced that the assay results for the latest RC drilling campaign completed at the Weednanna Au-Fe Deposit in the Eyre Peninsula, South Australia identified extensions to high-grade gold in Shoots 7 and 8.
Significant assay results included 8m @ 5.2 g/t Au from 92m and 3m @ 5.5 g/t Au from 67m and 3m @ 9.1 g/t Au from 76m. The company said that the assay results are expected to increase the Indicated gold resource in the central area of the deposit.
AGS said that there is potential to increase the size of Shoots 7 and 8 with further drilling.
2020MRE for Weednanna
In November 2020, Alliance had announced a gold and iron Mineral Resources Estimate (2020MRE) for the Weednanna Deposit of 1.106 Mt grading 4.3 g/t gold for 152,000 oz gold (classified 85% Measured & Indicated and 15% Inferred) and 1.15 Mt grading 59.4 % iron (classified as 65% Measured & Indicated and 35% Inferred).
Previous drilling at Weednanna
AGS noted that most of the gold defined at Shoot 7 for the 2020MRE was classified as Indicated and no gold resource was defined for Shoot 8 from the previous drill programs
Shoot 7
Shoot 7 is hosted within calc-silicate and magnetite skarn in an interpreted structural dilatational position near the hanging wall contact with granite and gneiss. Previous gold intersections into this shoot (used in the 2020MRE) included 11.25m @ 2.3 g/t Au from 60m in 10WDDH012; 7m @ 16.7 g/t Au from 89m in 19WDRC051; 6m @ 6.2 g/t Au from 90m in 10WDRC072; and 12m @ 2.6 g/t Au from 91m in 19WDRC054.
Shoot 8
Shoot 8 is hosted within calc-silicate near the footwall contact with granite and gneiss, immediately to the west and south of Shoot 7.
Previous gold intersections into this shoot have been narrow and moderate grade and consequently Shoot 8 was not included in the 2020MRE. Most of these gold intersections were identified during iron-focussed exploration and included 1m @ 6.9 g/t Au from 73m in 08WDRC010; 2m @ 3.8 g/t Au from 68m in 10WDRC038; 3m @ 2.4 g/t Au from 116m in 08WDRC011; and 5m @ 3.5 g/t Au from 178m including 1m @ 12.2 g/t Au from 178m in 19WDRC050.
Latest RC drilling at Weednanna
The company had drilled 19 RC holes for 3,098 metres at Shoots 7 and 8 at the Weednanna Au-Fe Deposit deposit during November and December 2020 to define the limits of gold in the central area of the deposit.
Recent drilling at Shoot 7 consisted of 12 holes, for 2,150 metres, (20WDRC081-092), and at Shoot 8 consisted of 7 holes, for 948 metres, (20WDRC074-080).
AGS has now reported the results from the latest drilling program.
Extensions to high-grade gold
Alliance Resources announced that the results from the drilling program have confirmed extensions to high-grade gold at Shoots 7 and 8 that is expected to increase the Indicated gold resource. AGS said that the gold at both shoots remains unconstrained by drilling in at least one direction.
The company said that most of the gold is located within 200m of surface in the southern half of the deposit and has been defined to Measured or Indicated resource category. AGS said that the high-grade gold intersected at Shoots 7 and 8 remains open with further drilling planned to define their extent.
Weednanna Gold Intercepts >1 g/t Au are as shown below.
Shoot 7
The company reported that the recent drilling at Shoot 7 has continued to define the extent of high-grade gold. Significant hits included 8m @ 5.2 g/t Au from 92m in 20WDRC083, 11m @ 3.2 g/t Au from 84m including 1m @ 20.0 g/t Au from 88m in 20WDRC085, 9m @ 15.6 g/t Au from 85m including 4m @ 33.4 g/t Au from 87m in 20WDRC091, and 6m @ 4.3 g/t Au from 104m in 20WDRC092.
Shoot 8
AGS reported that the recent drilling at Shoot 8 has intersected high-grade gold near the footwall contact and in a possible hangingwall splay.The company said that the hole 20WDRC075 returned 3m @ 5.5 g/t Au from 67m (Shoot 8HW), and 3m @ 9.1 g/t Au from 76m (Shoot 8).
What’s next?
Alliance said that it is completing feasibility level assessment into the commercial viability of establishing a 250,000 tonne per annum CIL gold producing operation at Weednanna using the 2020MRE.
The company said that the metallurgical test work is complete and the detailed engineering design of the gold processing facility has commenced. AGS said that the mine design and cost analysis work is progressing, as are various other studies and agreements required to support the submission of a mining lease application and mining proposal. Alliance said that it is working towards submitting its application for a mining lease in Q3 2021.
AGS reported that further drilling is planned at Weednanna in H2 2021 to increase the size and upgrade Inferred resources to the Indicated category in the northern area of the deposit, thereby increasing mine reserves and extending mine life.
*Image Source: Alliance Resources Ltd