Kalamazoo Resources Limited (ASX: KZR) has announced an encouraging update on the maiden drill program at the Castlemaine Gold Project in Victoria.
The company reported that four diamond drill holes (1,782.3m) have now been completed at the Mustang Prospect at the Castlemaine Gold Project.
KZR said that select assay results from the fourth hole, MU19DD04, have now been returned for the previously reported visible gold intersection from 100.32m depth.
The company reported that these assay results have recorded an exceptional high-grade gold intersection of 1.42m @ 261.3 g/t Au from 100.32m over a wider than interpreted interval which includes the visible gold intersection containing 0.17m @ 1,916 g/t Au.
Kalamazoo Resources said that investigations will now focus on this significant high-grade intersection and its implications on its ongoing exploration model and strategy at Castlemaine.
Castlemaine project
The Castlemaine gold project consists of two granted tenements. The Exploration Licence EL6679 covers 70km2, while the Exploration Licence EL6752 covers 218km2, thus taking the total tenement holding to 288km2.
EL6679 lies immediately east and south of the town of Castlemaine and covers almost the entire historic Castlemaine Goldfield whilst EL6752 lies to the east and south of EL6679 and covers regional geological structures known to be associated with gold potential.
EL6679 is 100% owned by Kalamazoo Resources Ltd and a proportion of EL6679 consists of the Castlemaine Diggings National Park which is classified as Restricted Crown Land.
Drilling at Castlemaine
The company had recently commenced drilling at the Castlemaine Gold Project.
KZR reported that its fourth diamond drill hole (MU19DD04) has been completed at the Mustang Prospect located within the private Pine Plantation in EL6679 of the Castlemaine project.
The company announced that the assay results returned for MU19DD04 drill core samples specifically associated with its previously reported 17cm visible gold-bearing quartz vein have reported highly encouraging intersections.
Exceptionally high-grade intersections
KZR reported that the assay results from drill hole MU19DD04 have reported an exceptionally high-grade intersection of 1.42m @ 261.3 g/t from 100.32m containing 0.17m @ 1,620 g/t Au.
The overall best assay results for this specific visible gold-bearing interval in MU19DD04 includes 1.42m @ 261.3 g/t Au from 100.32m including 0.17m @ 1,916 g/t Au from 100.32m (visible gold), 0.27m @ 70.6 g/t Au from 100.49m, 0.49m @ 4.1 g/t Au from 100.76, and 0.49m @ 49.7 g/t Au from 101.25.
The company noted that these high-grade gold assay results were initially determined by 40g fire assay with AAS finish and due to the significantly high grade were subsequently confirmed via re-assays utilising repeated (triplicate) 50g fire assay with gravimetric finish.
More about MU19DD04 mineralisation
The company reported that this high-grade, visible gold-bearing quartz vein is only part intersected and highly oblique to the drill core axis and as such, it’s true width and accurate orientation cannot currently be ascertained.
KZR said that the ‘visible gold style’ mineralisation is different from the nearby sulphide-rich mineralisation intersected in MU19DD02 which included the best assay result of 0.8m @ 19.4 g/t Au. The distance between these two drill holes is approximately 85m.
The company reported that the hole MU19DD04 was finished prematurely on account of intersecting the key Shicer Gully Fault earlier than anticipated at a down hole depth of 351.6m.
Updates and future plans
The company noted that the implications of the results from MU19DD04 to the company’s current gold exploration targets and model are also yet to be determined and will be the focus of further investigations.
KZR said that the drilling program has now ceased for a scheduled Christmas-New Year break and will re-commence in mid-January 2020.
The company reported that the remaining samples collected from MU19DD04 are currently being submitted to the laboratory for assay analysis.
Kalamazoo Resources said that the information and data collected from these first four drill holes will be used in a technical review and likely revision of Kalamazoo’s interpreted 3D structural model for the Mustang Prospect.
KZR said that an expected key outcome of this process will be further drill hole designs that test and refine both the 3D structural as well as gold mineralisation models.
The company announced that a further six to eight diamond drill holes are currently planned for the Mustang Prospect, dependent upon ongoing drill program results. This is expected to take approximately ten weeks to complete at the current drilling production rates.
Management statements
Kalamazoo Chairman and CEO, Mr Luke Reinehr said: “Although we are in the very early days of our maiden drill program at Castlemaine this exceptionally high-grade assay is extremely encouraging, especially as the visible gold-bearing quartz vein appears to have only been partially intersected, or clipped by drill hole MU19DD04.
An intersection of 1.42m @ 261.3 g/t Au (being more than 8 oz/t Au) supports our exploration strategy to focus on the incredibly rich historical Castlemaine and South Muckleford goldfields in our search for the next world class gold deposit in Victoria”.