Red 5 Limited (ASX: RED) announced that the underground exploration drilling continues to confirm the potential for resource extensions at the King of the Hills gold mine in the Eastern Goldfields region of Western Australia.
The company reported that a three-hole ‘’proof of concept’’ drill program has been undertaken to follow-up the mineralisation identified in historical drill holes (TARD series) targeting extensions down plunge to the north of the current 3.11Moz Resource model at the KOTH project.
RED said that the results from the second hole of the program, KHRD0352 have confirmed the presence of gold mineralisation 500m down plunge of the existing Resource, with broad mineralisation confirming the Inferred section of the Resource model with intercepts including 204.3m @ 1.0g/t Au (185.1m-389.4m); and 77.0m @ 1.0g/t Au (536.0m-613.0m)
The company reported that KHRD0352 also delivered higher-grade intercepts including 29.7m @ 2.5g/t Au, incl. 10.8m @ 5.8g/t Au (inside the current Inferred Resource); 36.1m @ 2.0g/t Au incl. 6.7m @ 2.6g/t Au; 21.8m @ 2.2g/t Au incl. 9.6m @ 3.9g/t Au; 15.5m @ 1.3g/t Au incl. 9.5m @ 2.0g/t Au; and 10.4m @ 2.4g/t Au incl. 0.9m @ 22.6g/t Au (outside Resource model).
RED said that hole KHRD0352 has also confirmed that mineralised stockwork has penetrated at least 70 metres into the granodiorite from the granodiorite-ultramafic contact. The company reported that the third hole in the program, KHRD0320 is completed with assays pending.
RED said that all holes confirm that mineralisation continues down plunge along the margins of the granodiorite-ultramafic contact.
Red 5 Managing Director said that the ongoing success of the proof-of-concept program in confirming the presence of gold mineralisation extending “down the nose” of the granodiorite contact margin, highlighted the outstanding growth potential of the KOTH orebody.
KOTH gold project
Red 5’s 100%-owned King of the Hills (KOTH) Gold Mine is located 80km south of the Company’s Darlot Gold Mine and 28km north of the town of Leonora in the Eastern Goldfields region of Western Australia.
Mining at KOTH has traditionally been focused on extracting high-grade gold veins, with the ore currently trucked to Red 5’s nearby Darlot Processing Plant for processing.
‘’Proof of concept’’ drill program
The company had commenced a three hole ‘’proof of concept’’ drill program at KOTH project.
Results from the first hole in the program, KHRD0278, were announced on 17 October 2019 and included assays of 16.0m @ 1.2g/t Au (204.0m-220.0m), incl. 0.3m @ 29.3g/t Au.
The company has now announced the results from the second drill hole KHRD0352. The drill hole KHRD0352 was drilled to target previously reported high-grade historical ‘TARD’ exploration results.
The company announced that the last hole in the program, KHRD0320, has been completed with assays pending.
High-grade results from KHRD0352
The company announced that hole KHRD0352 has returned results over 500m down plunge of the current Resource model, with a broad mineralised intercept of 204.3m @ 1.0g/t Au and higher-grade intercepts of 29.7m @ 2.5g/t Au and 9.6m @ 3.9g/t Au.
Highlights include 204.3m @ 1.0g/t Au (185.1m-389.4m), including 1.8m @ 5.9g/t Au (inside Resource model from 185.1m to approximately 341m, with the remainder outside); 77.0m @ 1.0g/t Au (536.0m-613.0m), including 2.5m @ 6.2g/t Au, (outside Resource model); and 10.4m @ 2.4g/t Au (707.1m-717.5m), including 0.9m @ 22.6g/t Au (outside Resource model).
In addition, the hole also delivered higher-grade intercepts including 29.7m @ 2.5g/t Au (201.2m-230.9m), incl. 10.8m @ 5.78g/t Au (inside the current Inferred Resource); 36.1m @ 2.0g/t Au (329.9m-366.0m), incl. 6.7m @ 2.58g/t Au (outside the Resource model); 21.8m @ 2.2g/t Au (591.4m-601.0m), incl. 9.6m @ 3.93g/t Au (outside the Resource model); 15.5m @ 1.3g/t Au (609.5m-619.0m), incl. 9.5m @ 1.98g/t Au (outside the Resource model); and 10.4m @ 2.4g/t Au (707.1m-717.5m), incl. 0.9m @ 22.60g/t Au, (outside Resource model)
Updates and next steps
RED said that the result further enhances the potential to extend the Resource area at KOTH and highlights the northerly plunge of the granodiorite intrusive margins as a compelling Resource extension target.
Red 5 said that further drilling is required to better define the geology and the high-grade mineralisation observed in the historical TARD holes and the Red 5 drill holes completed to date.
The company announced that follow-up drilling will continue to focus on this area, with the aim of further defining the area between the historical TARD series of surface holes and Red 5’s successful ‘down the nose’ proof-of-concept holes.
The company reported that the underground drilling continues at KOTH, with three underground diamond drilling rigs currently engaged on the 85,000 metre program to be completed in FY20.
Management comments
Red 5 Managing Director, Mark Williams said: “While most of our activities are currently focused on expanding and increasing the confidence of the 1.11 million ounce underground Resource, mostly located below the historical open pit at King of the Hills, we believe there is also potential for additional Resource growth within other areas of the perimeter margins of the granodiorite-ultramafic contact – which measures over 12km.
This initial drill program, comprising three holes, is designed to test a ‘proof-of-concept’ that gold mineralisation continues ‘down the nose’ of the contact. The second hole KHRD0352 confirms the presence of gold mineralisation a further 500m down plunge of the current Resource model, with mineralisation extending 70 metres into the granodiorite.
This has significant potential for the longer-term growth opportunities available at KOTH, which will be pursued in due course with the Final Feasibility Study currently underway on the existing Resource and Reserve area.”