Metallica Minerals (ASX:MLM) has delivered a JORC 2012 exploration target of up to 2.3 million ounces of contained gold at its Leo Grande Project in North Queensland.
The $19.19 million market capitalisation company has posted the exploration target, which starts from 150,000oz following a 5-hole drilling program in December 2023 which confirmed historical drillhole gold grades.
The best gold intercept recorded was hole LGRC058 with 21m @ 2.35 grams per tonne gold from 40m which includes a 10m zone from 49m which assayed 3.05g/t Au.
All 5 holes drilled by Metallica intersected fine grained graphite within the mineralised mylonite, however, the tenor of the graphite mineralisation was low.
Gold mineralisation occurs within mylonite horizons contained within a 3.2km long northwest-southeast striking shear zone, where Plutonic Operations drilled 54 historic reverse circulation holes on 34 section lines, with 51 of the holes intersecting zones which assay greater than 0.30g/t Au.
According to Metallica, there is scope to expand the current known mineralised footprint as the shear zone continues along strike for at least 1km to both the northwest and southeast.
The next stage of exploration at Leo Grande will comprise the drilling of 2 or 3 diamond holes to obtain core for metallurgical testwork to determine how to extract the gold and accompanying graphite from the mineralised mylonite, which is scheduled in the coming 12 to 24 months.
With the use of additional exploration work, and using historical drilling, rock chip and costean sampling as a guide, Metallica hopes to define a ‘significant’ area of mineralisation at the Leo Grande.
Executive Chairman Metallica Minerals Theo Psaros says: “While Metallica is focussed on our Cape Flattery silica project, it is encouraging to see the gold gold results from the drilling at Leo Grande which highlight the potential of defining a significant resource.
Metallica will continue to progress this project but only when assets are available and do not interfere with our main aim which is to progress the CFS project into production.”
Metallica Minerals is focused on developing its Cape Flattery Project, adjacent to the Cape Flattery Silica Sand mining and shipping operation owned by Mitsubishi Corporation in North Queensland.
Write to Adam Drought at Mining.com.au
Images: Metallica
