Dampier Gold reports new thick, high-grade gold strikes at Paradigm East

by Leena Thomas
Image: Dampier Gold Limited

Dampier Gold Limited (ASX: DAU) has announced high-grade gold strikes including 24m @ 6.39 g/t Au from the drilling on its Paradigm East Project in the Zuleika Gold JV in Western Australia.

Dampier reported that spectacular results were received from its Phase 2 Aircore drilling which consisted of 21 holes for a total 1055m drilled to bit refusal.

The company said that the drilling in Phase 2 was designed to test to the base of oxidation, an additional over 400m of strike extension to mineralisation identified in Phase 1.

Significant results include 24m true width @ 6.39 g/t Au from 28m incl 4m @ 34.74 g/t Au from 32m; and 8m @ 2.20 g/t Au from 48m incl 4m @ 3.25 g/t Au from 48m.

The company said that the high-grade result confirms and extends the historical high-grade zone of 7m @ 9.8 g/t Au incl 2m @ 30.9 g/t Au from 42m.

DAU said that the results from drilling to the east of previous drilling extended the mineralised footprint a further 400m along strike, with the zone still open to the east with a further 2km still to be tested.

Dampier said that samples were 4m composites downhole basis and elevated results are being re-assayed on 1m splits.

The company announced that it has identified more than 40 advanced targets within the Zuleika Project, to be tested in coming months.

Zuleika gold project

Dampier’s flagship Zuleika Gold Project covers 223sqkm of prospective gold terrine along the Zuleika Shear 40km north west of Kalgoorlie Western Australia. This landholding is along significant regional structures within highly prospective stratigraphy which has been the host to more than 20 million ounces of gold production over the last 30 years.

In October 2019, Dampier Gold Limited executed terms sheets with Torian Resources Limited to earn up to 75% of the Zuleika Gold Project (Zuleika Project).

Important targets within the Zuleika project include Paradigm East, Browns Dam, and Castle Hill East.

The Paradigm East is 1.5km from NST’s Paradigm Mine. Dampier’s newly discovered gold zone at Browns Dam on the Zuleika Shear extends 2km.

Drilling at Zulieka

The company had successfully completed the Phase 1 RC program at Paradigm East in Zulieka. The company had intersected historical high-grade zone in DQRC004 of 7m @ 9.8 g/t Au incl 2m @ 30.9 g/t Au from 42m.

DAU had recently commenced Phase 2 aircore drilling designed to test to the base of oxidation, an additional over 400m of strike extension to mineralisation identified in Phase 1. Phase 2 Aircore drilling consisted of 21 holes for a total 1055m drilled to bit refusal (fresh rock).

The company has now reported high-grade intercepts from phase two drilling at the Paradigm East prospect.

Spectacular results from Phase 2 AC drilling

Dampier reported that it has hits high-grade gold strike at Zuleika joint venture project.

The company announced that the best intercepts within the composite sampling were 24m @ 6.4 g/t Au from 28m incl 4m @ 34.7 g/t Au from 32m in DPEAC0021; and 8m @ 2.2 g/t Au from 48m incl 4m @ 3.3 g/t Au from 48m in DPEAC0004.

DAU said that other intercepts >100ppb Au (0.1ppm Au) were also returned from holes DPEAC0010 and 11, which confirm anomalous gold suggesting the presence of further mineralisation yet to be discovered.

Further significant intercepts from the extension drilling included 8m @ 0.36 g/t Au from 52m in DPEAC0008; 6m @ 0.20 g/t Au from 44m in DPEAC0007; and 4m@ 0.71 g/t Au from 32m in DPEAC0017 and 4m @ 0.31 g/t Au from 40m.

The company said that the confirmation of the mineralisation zone is considered to be highly encouraging for this system to produce high grade gold zones.

DAU said that the high-grade supergene intersections in DQRC004 and DPEAC021 sit above a vertical mineralised zone in the fresh rock interpreted from drilling. The shallow mineralisation extends north (~25m) and south (~60M) across strike.

A typical mine development with supergene and primary gold mineralisation is to develop the supergene zone in an open-pit and once below this zone develop an underground mine in one of the shoots from the bottom of the pit.

What’s next?

The company said that follow-up drilling based on the results of this program is planned.

Management comments

Dampier’s Managing Director Annie Guo said: “Our latest successful exploration results have vindicated Dampier’s strategy of maintaining an aggressive drilling campaign in parallel with our technical team’s increasing understanding of the mineralised systems within the project area. I wish to congratulate Dampier’s team for this outstanding result.

We have hit more high-grade mineralisation in previously untested areas. These results extend the known limits of mineralisation. This points to a larger mineralised envelope which in turn will give greater scale to the project.

Dampier’s Zuleika project represents an extensive land holding covering significant regional structures including the world class Zuleika Shear. With more than 40 targets including drill ready prioritised targets such as Paradigm East, Browns Dam, and Castle Hill East, we are exploring in one of richest gold regions in the world, demonstrated by multiple mines along the Zuleika Shear and on parallel and cross cutting structures. The Paradigm East zone has a significant long footprint of over 700m and the confirmation of a high-grade zone is highly encouraging.

The success at Paradigm East enforces the significant potential of Dampier’s asset portfolio and together with the technical ability of its committed team, Dampier is on track with its focus of rapidly defining JORC Resources at its Zuleika project area which forms part of our Menzies/Kalgoorlie exploration strategy.”