NTM Gold Ltd (ASX: NTM) has announced a positive update on its Redcliffe Gold Project in Leonora, Western Australia.
The company reported that the diamond and RC drilling returned numerous high-grade intersections.
Highlights include 10m @ 6.0 g/t Au from 85m, incl. 5m @ 9.2 g/t Au (RC 5m composite), 4.1m @ 8.4 g/t Au from 186.4m (Diamond), and 6.0m @ 5.1 g/t Au from 323.5m, incl. 1m @ 11.5 g/t Au (Diamond).
The company reported that 1m RC resamples confirm outstanding shallow grades and widths. Significant intersections include 9m @ 12.5 g/t Au from 33m, incl. 2m @ 29.6 g/t Au, 12m @ 6.8 g/t Au from 25m, incl. 2m @ 20.7 g/t Au, and 9m @ 8.9 g/t Au from 24m, incl. 2m @ 14.1 g/t Au.
NTM reported that Hub strike has been extended to over 1,350m with results on southernmost RC line of 5m @ 5.0 g/t Au from surface (RC 5m composite), and 5m @ 2.1 g/t Au from 65m (RC 5m composite).
Redcliffe project
The Company’s 100% owned Redcliffe Gold Project is located 45-60km northeast of Leonora in the Eastern Goldfields Region of Western Australia. The Redcliffe Gold Project area comprises ~ 170 square km of tenure.
The project has a Mineral Resource Estimate of 537,862 oz of gold (12.53Mt @ 1.34g/t Au) in both the Indicated (1.75Mt @ 2.23 g/t) and Inferred (10.77Mt @ 1.19 g/t) categories.
One of the prospects within the project is the Hub prospect.
Drilling at Hub
The company announced that RC and diamond drilling at Hub was completed just prior to Christmas. The focus of the drilling was on both infill and extension targets. The drilling tested northern and southern extensions as well as shallow grade continuity
NTM said that RC drilling consisted of 31 holes for 4,643m. The diamond tails were completed on 6 holes for 468.7m.
The company reported that drilling at Hub has confirmed grade continuity, particularly in the central part of the prospect, giving confidence to the robustness of the gold mineralisation.
NTM said that in addition, mineralisation was intersected over 200m south of the previous southernmost intercept, extending the strike of Hub to over 1,350m.
Infill drilling
The company reported that RC holes are initially sampled on 5m composites.
NTM said that the 5m composites from the first eight holes (19RRC079 – 086) returned exceptional grades close to surface.
Resampled on 1m interval
The company said that selected intervals were resampled on 1 metre intervals with results confirming the tenor of the previous grades and widths.
Better 1m RC resamples include 9m @ 12.5 g/t Au from 33m, incl. 2m @ 29.6 g/t Au in 19RRC081, 12m @ 6.8 g/t Au from 25m, incl. 2m @ 20.7 g/t Au in 19RRC079, 9m @ 8.9 g/t Au from 24m, incl. 2m @ 14.1 g/t Au in 19RRC083, and 6m @ 5.5 g/t Au from 137m, incl. 3m @ 8.4 g/t Au in 19RRC085.
Remaining 5m composite samples received
The company reported that the 5m composite samples from the remaining RC holes (19RRC087 – 110) have now been received, returning a large number of high-grade results. Additionally, the diamond drilling intersected high-grade mineralisation at depth.
Better results include 10m @ 6.0 g/t Au from 85m, incl. 5m @ 9.2 g/t Au in 19RRC092 (RC – 5m comp), 4.1m @ 8.4 g/t Au from 186.4m in 19RRC091D (diamond), 6.0m @ 5.1 g/t Au from 323.5m, incl. 1m @ 11.5 g/t Au in 19RRC090D (diamond), 5.0m @ 4.0 g/t Au from 100m in 19RRC094 (RC – 5m comp), and 4.9m @ 3.2 g/t Au from 235.6m, incl. 1.1m @ 8.9 g/t Au in 19RRC087D (diamond).
Extensional Drilling
NTM said that a number of RC holes were drilled to test the northern and southern extents of the prospect.
The company said that the southern drilling program returned a number of highly encouraging results. Consequently, the overall strike of mineralisation was extended by 200m, with Hub now having an overall strike length of +1,350m and remaining open.
Results from south
Better results from the south include 5m @ 5.0 g/t Au from surface in 19RRC110 (RC – 5m comp), 5m @ 2.1 g/t Au from 65m in 19RRC108 (RC – 5m comp), and 10m @ 1.4 g/t Au from 175m in 19RRC104 (RC – 5m comp).
To the north, a number of holes were designed to test the shallower and northerly strike extents. The drilling confirmed the presence of the mineralising structure.
Results from north
Better results include 10m @ 2.7 g/t Au from 20m in 19RRC100 (RC – 5m comp), 5m @ 2.8 g/t Au from 85m in 19RRC101 (RC – 5m comp), and 5m @ 1.4 g/t Au from 75m in 19RRC098 (RC – 5m comp).
Cash reserve
NTM reported that it has cash of approximately $5m. In addition, over $4m is potentially available from March 2020 in the money options (5cps exercise). The Company said that consequently, it is very well positioned for an extensive and aggressive exploration program in 2020.
Next steps
The company reported that these latest results continue to upgrade Hub with high grades close to surface in oxide, a +1,300m strike length, and mineralisation open to the north and south and at depth.
NTM said that the key immediate focus will be on extending Hub, as well as emphasis on targeting new discoveries, and expanding the resource base.
To this end, the Company reported that it intends to undertake extensive RC, diamond and aircore drilling programs across the year, with the next program scheduled for the coming weeks.
NTM said that further drill testing of the anomalous results is planned based on additional geological analysis. The location of the collars of these holes is still to be determined.
Management comments
NTM Gold Managing Director Andrew Muir said: “These latest results continue to demonstrate the potential of Hub with exceptional grades close to surface and a strike of over 1.3km.
Hub continues to grow with each drill program and we look forward to ongoing testing with drilling to recommence in coming weeks.”
