Australian Gold and Copper (ASX:AGC) has begun an immediate follow-up drilling program at the Achilles drill target, as part of its South Cobar Project in New South Wales, after drilling delivered a top high-grade hit of 735 grams per tonne (g/t) silver.
Australian Gold and Copper, which has a $16.66 million market capitalisation, was on the hunt for gold, silver and base metals in the Cobar Basin when drilling uncovered shallow high-grade mineralisation extending for about 250m of strike.
Results from Achilles, returned from 10 holes totaling 1,596m, demonstrate peak grades up to 8.1g/t gold from within a 22m intercept from 90m deep and 735g/t silver within a 7m intercept from 77m below surface.
Managing Director Glen Diemar says the presence of silver adds another value driver to the project.
“Our persistence and technical field work at Achilles are paying off. We are poised for an exciting exploration story and potential future growth at a time when precious metal prices are breaking out of long-term trends.
“It was an easy decision to bring the rig back in and get drilling again. We are stepping the rig north, south and down dip as the mineralisation is open in every direction.
The other three targets at Achilles are equally as attractive with similar geological characteristics.”
Silver is set for a break-out, according to several industry commentators, with prices expected to rise above US$30 an ounce thanks to increasing demand for solar power.
Silver is a key component of solar cell production, which, along with wind power generation, is expected to account for a record 96%, or 710 gigawatts, of power generation by 2028, according to The Silver Institute.
Maiden drilling, meanwhile, has uncovered a second mineralised system at the Hilltop deposit.
Hilltop is also located within the South Cobar project, which is a 120km long, 1,090km2 tenement package sitting in the renowned Lachlan Fold Belt in the southern Cobar Basin, according to the company’s latest presentation.
Australian Gold and Copper has also identified three additional targets at Achilles, including an induced polarisation chargeability target at depth to the west of the current drilling. Staged exploration is being planned to investigate the target in the coming quarters.
According to Australian Gold and Copper, results from Achilles and Hilltop are the first mineralisation drilled within the Ural Volcanics in the southern Cobar Basin.
Australian Gold and Copper is an explorer focused on the exploration and development of its multi-asset gold portfolio in New South Wales.
The company’s portfolio includes the Moorefield, Cargelligo, and Gundagai projects.
Write to Adam Drought at Mining.com.au
Images: Australian Gold and Copper
