Auteco Minerals Ltd (ASX: AUT) has announced a highly encouraging maiden JORC 2012-compliant Inferred Resource for its Pickle Crow Gold Project in Ontario, Canada.
The company reported that the Independent Maiden JORC 2012 Inferred Resource for the Pickle Crow Gold Project Mine is 830,000oz at 11.6 g/t.
AUT said that the resource runs from the surface immediately adjacent to existing underground and surface infrastructure and mineralisation remains open along strike and at depth.
Auteco said that Drilling program to grow this Resource is already well underway, with mineralisation open in every direction and numerous walk-up targets to test. The company said that nine holes have been completed and a second diamond drill rig is mobilising to site to expedite resource growth and test multiple walk-up targets.
The company said that the visual inspection of the initial drill intersections validates the geological interpretation with significant mineralisation, veining, and visual gold intercepted, and assays are pending.
Auteco said that numerous high-grade targets have been identified since acquisition, and is anticipated to be drilled in 2020.
The company reported that there is scope for rapid resource growth, with intersections outside Resource estimate including 10.7m @ 50.9g/t gold; 1.1m @ 150.0g/t gold; 6.9m @ 17.7g/t gold; 1.5m @ 444.4 g/t gold; 2m @ 69.1 g/t gold; and 0.9m @ 878.7 g/t gold.
Pickle Crow project
Pickle Crow deposit is located in the Tier-1 Mining Jurisdiction of Ontario, Canada. It was originally discovered in the early 1930’s and commenced commercial production in 1935.
The project had produced 1.5Moz at 16 g/t2 up to its closure in 1966, when the gold price was ~US$35/oz; Limited significant exploration has been conducted since.
Auteco has entered into a binding term sheet agreement to acquire up to 80% of the Pickle Crow Gold Project from First Mining Inc.
The Pickle Crow project is located in a world-class gold mining province which also hosts projects such as Red Lake (Evolution Mining: 25Moz), Musselwhite (Newmont Corporation: 5.7Moz), and Springpole (First Mining Gold Corp: 4.7Moz).
Resource estimate at Pickle Crow
The company had recently completed a review of the existing data at Pickle Crow, including previous non-JORC compliant resources, with the help of Perth-based Cube Consulting
AUT said that the resources are from surface and are adjacent to existing underground mine development and infrastructure; and the mineralisation is open on all lodes along strike and at depth.
The company reported that the Maiden Mineral Resource Estimate is located within a 3.5km section of the core mineralised shear zone and incorporates multiple high-grade Lodes within a large mineralised corridor.
AUT reported that the Independent JORC 2012 Inferred resource estimate at selected lower cut-off grades at the Pickle Crow Gold Project totals 2.3Mt at 11.6g/t gold for 830,000oz. The current Resource includes 15 separate modelled lodes.
Drill intercepts within the Maiden Resource Estimate include 13.1m @ 43.3 g/t gold from 530.35m; 7.6m @ 8.2 g/t gold from 492.5m; 2.8m @ 11.2 g/t gold from 547.67m; 5.0m @ 9.1 g/t gold from 102m; 3.9m @ 17.4 g/t gold from 200m; and 3.2m @ 134.3 g/t gold from 1139.8m.
Maiden drilling program at Pickle Crow
Auteco had commenced its maiden drilling program at Pickle Crow late last month. The company said that to date, nine drill holes for 2,079m have been completed with all assay results pending.
The company said that the results of this program will form part of a resource update it aims to complete later this calendar year.
AUT said that visually encouraging mineralisation was intersected where anticipated in all holes with visible gold the observed in hole AUDD0004 at 296.7m. As a result, the initial drill program has been expanded from 5,000m to 10,000m.
The company said that a second diamond drill rig has been mobilised, scheduled for arrival in July 2020 to supplement Auteco’s Maiden diamond drilling campaign.
Potential for rapid resource growth
AUT said that exploration efforts are currently focussed on the definition of additional resources within the top 500m from surface within the Core Trend. Targeting is focussed on extending mineralisation around the current Inferred Resource and historical mining and infrastructure.
Auteco is the first company to explore the consolidated regional exploration ground which covers a significant area of prospective stratigraphy with a total of 320km2 of landholding.
The company reported that there are multiple, underexplored, mineralised trends within the property and outside of the maiden resource area. Already identified walk-up drill targets include Core Mine Shear, East Pat Shear, Cohen – Mac Arthur Shear, and Kawinogans Target.
High-grade drill results
The company said that significant scope was identified for resource expansion through new discoveries ‘in the shadow of the headframe’ as well as along strike and at depth with unmined drill results from targets outside of the resource estimate.
This includes extensional drill holes outside current Inferred Resource; and multiple underexplored, walk-up, near-mine targets in the 320km2 of tenure.
Extensional drill holes outside current Inferred Resource
Significant intersections include Vein 13 Target: 10.7m @ 50.9g/t gold from 5.49m in 3-4-179, and 1.1m @ 150.0g/t gold from 156.5m in PC99-12; Vein 2 Footwall Vein Target: 1.7m @ 55.5 g/t gold from 91.29m in 744-14, and 6.9m @ 17.7g/t gold from 1.83m in 3-2-112; Vein 3 Target: 1.2m @ 103.4g/t gold from 20.24m in 744-24; Vein 22 and 23 Targets: 1.5m @ 444.4 g/t gold from 22.65m (includes 0.5m @ 1325.7g/t gold from 23.65m) in PC-11-251, 2m @ 69.1 g/t gold from 23.7m in PC-12-253, 0.9m @ 878.7 g/t gold from 65.89m in PC-14-283, and 9.9m @ 12.9 g/t gold from 66.2m in PC-14-284; Vein 9 Target: 2.6m @ 78.8 g/t gold from 37.08m in 2200-1-22-55, 1.2m @ 79.5 g/t gold from 104.8m in 4-38-41, and 2.2m @ 37.6 g/t gold from 117.43m in 4-38-42.
Multiple underexplored, walk-up, near-mine targets in the 320km2 of tenure
Important hits include Springer Shaft Target: 1.7m @ 36.6 g/t gold from 15.1m in CPSH-88-01; F Vein Target: 4.6m @ 9.3 g/t gold from 27.1m in CP-88-92; SW Powder house Target: 6.1m @ 7.3 g/t gold from 86.6m in PL04-26; and East Pat Shear: 6.0m @ 7.7 g/t gold from 232m in PC-10-145
What’s next?
Auteco Minerals said that it is currently conducting drill testing of additional lodes as well as step out and infill drilling of existing lodes to further enhance the resources quoted in this release. More information is presented in the body of this report.
The company reported that it continues to identify and assess multiple other target areas within the property boundary for additional resources.
Management comments
Auteco Executive Chairman Ray Shorrocks said: “This maiden JORC Resource, which has been independently calculated, confirms Pickle Crow is a significant, high-grade deposit with immense growth potential.
The Resource validates the geological model of our technical team, which in turn supports their view about the scope for further resource growth.
We are now undertaking the first systematic exploration program at Pickle Crow for 50 years.
Our confidence in the project has been strengthened by the visual results from the first few drill holes and as a result, we have added a second drill rig and increased the program from 5,000m to at least 10,000m.
This is just the beginning of work at Pickle Crow. Our active exploration has three goals, firstly near-term resources growth focused on adding geological confidence to already identified areas of mineralisation that can be brought into the resource inventory.
Secondly, extensions to the current known resources which remain open in both along strike and down dip.
Finally, new discovery through step out exploration, with numerous high priority targets identified outside the Core Trend.”