Kingsgate Consolidated (ASX:KCN) is floating more drilling to test the extent of a ‘significant’ mineralised system discovered via recent exploration work at its Chang Puek prospect in Thailand.
The $345.38 million market capitalisation company recently conducted a diamond drilling program that confirmed ‘significant’ gold and silver mineralisation at the prospect.
Drillhole 7726DD confirmed that the mineralised system is dipping to the east and that gold mineralisation is associated with phyllic altered rhyolitic breccia and hydrothermal breccia with 2-10% quartz-sulphide veins and 1-7% disseminated pyrite.
Kingsgate says this gold and silver mineralisation is of a similar nature to the epithermal ore at the Chatree Gold Mine, which sits about 20km north of Chang Puek.
The company notes there has been limited follow-up drilling conducted along-strike at this early stage of exploration, hence the proposal for more drilling.
Kingsgate Consolidated is a gold-focused company that owns the Chatree Gold Mine through its Thai subsidiary, Akara Resources.
As of 30 September 2023, the company had $4.5 million cash and cash equivalents at hand, according to its latest quarterly report. This does not include the company’s $3.8 million in bullion and $5.4 million in unrefined gold/silver.
Write to Aaliyah Rogan at Mining.com.au
Images: Kingsgate Consolidated