Gateway Mining (ASX:GML) has uncovered a new zone of gold mineralisation with ‘exciting’ growth potential following a diamond drilling program at its Achilles East target in Western Australia.
The $9.94 million market capitalisation company says the discovery of a new zone at its Montague Gold Project has the potential to add ‘significantly’ to the existing Achilles North/Airport oxide mineral resource.
Gateway reports the discovery has been made following the return of assays from a deep diamond drillhole that was co-funded by the Western Australia State Government Exploration Incentive Scheme (EIS).
The new zone is interpreted to dip to the east, span up to 50m thick, and extend over a strike length of more than 600m.
Key results from the co-funded EIS hole include hole GDD026, with 12m @ 1.2g/t Au from 244m within 48m @ 0.6g/t Au and 2.3m @ 1.6g/t Au from 290m.
These intercepts align directly with previous shallow granodiorite-hosted intersections east of Achilles, including hole GRC941 with 18m @ 2g/t Au from 31m within 30m @ 1.3g/t Au from 31m.
The company notes to follow up on the discovery, it has begun reverse circulation (RC) drilling to extend the ‘higher-grade’ zone intersected in GRC941 up-dip.
Managing Director Mark Cossom says the discovery of ‘significant’ widths of primary gold mineralisation adjacent to the Achilles oxide resource represents an ‘exciting’ development.
Gateway Mining is a Western Australia mineral explorer focused on building a ‘substantial’ gold inventory in the North Murchison Goldfields.
The company’s Montague Project sits about 70km north of the township of Sandstone and is easily accessible from Perth via major well-formed and sealed gravel roads.
As of 30 September 2023, Gateway Mining had $1.246 million cash and cash equivalents at hand, according to its latest quarterly report.
Write to Adam Drought at Mining.com.au
Images: Gateway Mining
