Ora Banda Mining Limited (ASX: OBM) has announced further encouraging results from its resource definition drilling programs at the Callion deposit in WA.
The company said that the resource definition drill program continues to return high grade assays.
Significant hits from the Underground target includes 8.0m @ 20.2 g/t Au from 118m; and 8.0m @ 16.4 g/t Au from 139m; while the highlights from the Open Pit target include 2.0m @ 6.95 g/t Au from 109m; and 7.0m @ 1.7 g/t Au from 102m, including 3.0m @ 3.34g/t Au.
Callion deposit
The Callion Deposit is located 13km South West of the Davyhurst Mill, within the North Eastern Goldfields of Western Australia.
Callion has a historical published resource of 169Kt @ 2.6 g/t for 14,000 contained ounces, with the resource constrained above the 350m RL (80 vertical metres below surface) to assess remnant open cut potential only.
The existing Callion open pit is approximately 650m long and approximately 40m deep, with the underground workings extending off the southern end of the pit to a vertical depth of 220m below surface.
The total recorded historical production for the open pit is 135Kt @ 4.1g/t for 17.6koz, with the underground mine producing 146Kt @ 15.8g/t for 74Koz for total production of 280Kt @ 10.2 g/t for 91,650 ounces of contained gold.
A Mineral Resource upgrade that will include both open pit and underground potential remains a key focus for this deposit.
Drilling at Callion
The drilling at Callion was focussed on extending and upgrading the current open pit Resource and delineating a maiden underground Resource.
The company said that the Phase 1 & 2 drilling has now concluded with a total 53 RC holes (6,938 m) and 17 diamond tails (1,948 m) completed.
High-grade results reported earlier
The company had reported high-grade results from the drilling on 28 January 2020.
Underground target results included 4.8m @ 34.4 g/t from 232m, including 0.3m @ 498.2g/t, and 1.2m @ 15.7 g/t from 220m. The Open Pit target results included 10.0m @ 8.0 g/t from 76m and 5.0m @ 3.3 g/t from 73m.
Further high-grade assays reported
The company has now reported further high-grade assays from the resource definition drill program. Both Underground target, as well as Open Pit target, reported exceptional results.
Underground target results
The company said that the Underground target results returned include 8.0m @ 20.2 g/t from 118m; 8.0m @ 16.4 g/t from 139m; 10.0m @ 3.5 g/t from 158m; 1.4m @ 16.9 g/t from 179m, including 1.0m @ 22.6g/t; 2.6m @ 8.35g/t from 183m; and 2.0m @ 9.68g/t from 124m.
Importantly, the drill hole CNRC19032 of the underground diamond drilling program returned 8.0m @ 16.4g/t from 139 metres.
This hole had targeted and successfully intersected the along strike continuation of the high-grade shoot associated with the historical main underground mining area. The overall shoot plunge continuation at depth remains a focus for future exploration works.
Open Pit target results
OBM said that the Open Pit target results returned include 2.0m @ 6.95 g/t from 109m; and 7.0m @ 1.7 g/t from 102m, including 3.0m @ 3.34g/t.
Development plan for Callion deposit
The company announced that the conceptual development plan for the Callion deposit includes an open pit cut back to re-establish underground access, rehabilitating existing underground mine development where required to extract a number of high-grade zones that remain within the upper sections of the historical mine, followed by the development and extraction of new high grade areas below the existing mine workings.
Next steps
OBM said that it is planning further data evaluation and geological assessment of drilling conducted at the Callion deposit, followed by additional resource drilling where required.
The company reported that the metallurgical and geotechnical core drilling is planned for early 2020. Orabanda said that it is also planning geological and resource modelling followed by resource estimation.
Management comments
Ora Banda Managing Director, David Quinlivan, said: “Receiving these results now allows us to move forward with the progression of the Callion Mineral Resource update.
Pleasingly, the high-grade nature of this deposit continues to shine through.”