Forrestania Resources (ASX:FRS) anticipates having the results of maiden drilling at the Ada Ann gold prospect in Western Australia before Christmas with work now underway.
Reverse circulation drilling, which is expected to take about a week, is following up previous top intercepts including 4m @ 12.8 grams per tonne (g/t) from 25m and 16m @ 2.6g/t from 24m.
The 1,600m, 21-hole program is also testing the extent of the mineralisation at depth and immediately along strike, as well as the potential for an additional zone of mineralisation around the area of historic drill spoils that returned up to 49g/t gold.
Chairman John Hannaford says the previous “high-grade” drill results have not had any serious exploration since 2008 when the gold price was less than $1,000 per ounce.
Gold is now over $4,179 an ounce after reaching a new Australian dollar record in mid-October.
“Several shallow, high-grade intercepts from previous drilling represent very attractive exploration targets that we will be aiming to extend with this program,” Hannaford says.
“The recent surge in gold price has also heightened the value of a potential gold discovery at the project.
“Also of particular interest is the investment by Evolution Mining (ASX:EVN) of $250 million to double production capacity at its Mungari operations underlining their commitment to the project and the long term gold production potential of the area.”
Forrestania secured the drill rig last week under a ‘drill for equity’ deal. Contractor Topdrill has agreed to take part of its payment in Forrestania shares.
The Ada Ann prospect is part of the Bonnie Vale Project in the Eastern Goldfields region, with the tenements located within the Norseman-Wiluna Greenstone Belt of the Yilgarn Craton.
Forrestania is exploring for gold, lithium and copper in the Eastern Goldfields, Forrestania and Southern Cross regions of Western Australia.
The company holds 11 exploration licences and has submitted four exploration licence applications covering 1,000km2 in total.
The tenements are predominately non-contiguous and scattered over 300km length, overlying or on the margins of greenstone belts.
Write to Angela East at Mining.com.au
Images: Forrestania Resources
