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    Metal Bank reports emergence of a large gold system at 8 Mile project

    Metal Bank Limited (ASX: MBK) has announced an encouraging drilling update from the Eastern Target of its 8 Mile Project in southeast Queensland, Australia.

    The company reported that the latest drilling significantly enhances the potential for bulk-tonnage style gold mineralisation on the Flori’s Find and Perry prospects.

    MBK said that this provided improved understanding of the gold mineralisation together with indications that gold grades may increase with depth.

    The company reported that the results from a single step back hole at Flori’s Find prospect include 16m @ 1.9g/t Au from 69m (true width) and confirm a westerly dip with mineralised intrusives extending more than 220m down dip with strike potential over 800m.

    At Perry prospect, broad gold zones forming a part of the outer halo of the intrusion related gold system were intersected. Results include 6m @ 1.0g/t Au from 105m (within 31m @ 0.4g/t Au from 87m); 3m @ 2.2g/t Au from 72m (within 23m @ 0.4g/t Au from 60m); and 6m @ 3.4g/t Au from 4m.

    8 Mile project

    The 8 Mile project consists of exploration licence application (255km2) over an interpreted large-scale alteration system near the Mt Rawdon gold deposit in south-east Queensland, Australia.

    In the 8 Mile project, Flori’s Find and Perry prospects are located within the same structural corridor more than 2km apart.

    Drilling at 8 Mile

    The company had commenced reverse circulation (RC) drilling and diamond (DD) drilling programme at 8 Mile. The programme was designed to investigate the geometry of near surface gold mineralisation intersected in recent drilling and investigate initial targets interpreted in the IP geophysical data.

    Ten holes were completed for 1097m RC with two holes extended as diamond drill tails for 237.7m. Nine holes were completed at Perry prospect and one hole was completed at Flori’s Find prospect

    Similarities with Mt Rawdon gold mine

    The company reported that at both Flori’s Find and Perry prospects the gold mineralisation is closely associated with high-level strongly altered (silica-sericite) felsic intrusive rocks with many similarities to the nearby ~2 Moz Mt Rawdon gold mine.

    It may be noted that Flori’s Find and Perry prospects lie within the same structural corridor 3.6km long defined by surface geochemistry typical of intrusion related gold systems and with ore geometries both dipping towards the west at 30 to 40 degrees.

    Perry prospect

    The company noted that the anomalous levels of arsenic associated with the gold mineralisation at the Perry prospect are typical of the outer halo style mineralisation in intrusion related gold systems and support potential for better gold grades deeper to the west and south of the current drilling where the mineralised intrusive is interpreted to extend.

    High-grade drill results

    The company said that two RC holes were completed on a new target area (gold soil anomaly) approximately 700m to the north-east of the Perry prospect.

    MBK reported that near surface mineralisation intersected, including 6m @ 3.4g/t Au from 4m (hole ETRC018), highlighting a new parallel mineralised structure.

    The company noted that mineralisation is associated with an altered intrusive interpreted to dip towards the west (30 to 40 degrees) similar to Perry and Flori’s Find.

    Other results include 6m @ 1.0g/t Au from 105m (within 31m @ 0.4g/t Au from 87m) (hole ETRC014); and 3m @ 2.2 g/t Au from 72m (within 23m @ 0.4g/t Au from 60m) (hole ETDD016).

    Flori’s Find prospect

    MBK said that Flori’s Find prospect is typical of the inner halo-style mineralisation in intrusion related gold systems with arsenic levels reducing with depth and good indications of gold grades now observed to be increasing with depth.

    The company said that the historical mine rock sample of 15% Cu. 37g/t Ag, 0.35g/t Au highlights possible leakage above a new target zone (west of current drilling).

    Encouraging drill results

    The company said that one reverse circulation hole, ETRC020, was completed to provide greater confidence on the down dip geometry of the gold mineralisation.

    MBK reported that the drill hole intersected 16m @ 1.9g/t Au from 69m (true width), confirming a westerly dip (30 to 40 degrees) on the mineralised intrusives and extending more than 220m down dip (65m below surface).

    The company said that the soil geochemistry defines a >800m gold soil anomaly (5ppb to 590ppb Au) supporting the continuation of the mineralised zone for at least this length along strike.

    Next steps

    Metal Bank reported that further drilling at Flori’s Find will be focused of the strike extent of the mineralisation associated with the gold in soil geochemical anomaly (5ppb to 590ppb Au).

    MBK said that at the Perry prospect further drilling will track the gold mineralisation intersected in the current drilling deeper to the west and south, where better gold grades are interpreted.

    The company reported that further interpretation and review of the data will be completed to plan additional drilling programmes.

    Management comments

    Tony Schreck, Managing Director of Metal Bank said: “These early results are exceptional with both the Flori’s Find and Perry prospects quickly evolving into two significant gold systems located 2km apart along the same structural corridor.”

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    • Delayed Prices (USD) - Last Updated 23-10-2021
    • Gold $1,793.20
    • Silver $24.28
    • Platinum $1,038.00
    • Palladium $1,948.00
    • Dalian Iron Ore i2201 $110.96
    • Aluminium $2,910.50
    • Cobalt $58,598.87
    • Copper $9,831.50
    • Lead $2,400.00
    • Nickel $19,930.00
    • Tin $37,250.00
    • Zinc $3,429.50