The current geological model at Provenance Gold’s (CSE:PAU) Eldorado Gold Project in eastern Oregon, US, has extended mineralisation further to the south and southwest of the Herman Area.
This newly discovered mineralisation was overlooked in historical exploration due to the minimal surface bedrock exposures and historic lack of understanding of the overall project geology.
Drilling with both the reverse circulation and diamond core rigs continues to test these areas and aims to expand and infill the known footprint of the gold system at Eldorado West.
In addition, permitting is ongoing for new drill sites at both the Eldorado West and Eldorado East to allow for much further expanded drilling of the system in 2026.
Drilling is ongoing with assays from seven reverse circulation holes pending from Zones 3-4 in the Tyee Area and the Herman Area. At Herman, the drilling tests the newly discovered mineralised contact zone between the diorite intrusive complex and the host metasedimentary rocks.
Additionally, three diamond core holes are pending in the Herman Area with a focus on extending mineralisation towards the south and southwest.
These core holes will provide Provenance key information about the geological controls and structural details of the mineralisation. All mineralised zones at Eldorado West remain open in all directions.
Provenance Chairman Rauno Perttu says hole ED29 is pivotal in this step-out program, as the company already demonstrated that gold is prolific at Eldorado West over a large area.
The Chairman adds the company remains confident much more mineralisation exists within both the previously explored area and within the large new unexplored region.
“I’m excited because I think the gold system appears to be strengthening into this broad unexplored area with no outcrops or prior exploration,” Perttu says.
“Historic gold mining of locally derived placer gold along its borders to the south and west, and our geophysics and geochemistry support our belief that the gold system continues and potentially strengthens into this unexplored area.
“We have just scratched the surface of this amazing property, and we haven’t even begun tackling Eldorado East yet.”
Recent assay results show hole ED29 returning 1.56 grams per tonne of gold over 254.51m from surface and ending in mineralisation, including 2.84g/t gold over 42.67m including 9.8g/t over 6.1m.
A new mineralised zone returned 5.94g/t gold over 19.81m including 20.33g/t over 4.57m.
Hole ED29 was drilled southwestward from the Herman area into a previously undrilled region, some 50m to the south of ED27.
ED29, hosted in both diorite and mixed metasediments, exhibited strong gold mineralisation throughout its entire length and ended in strong mineralisation at a depth of 254.51m.
ED29 continues to expand a new feeder zone found 800m to the south of Zone 1, additionally discovering a new ‘high-grade’ zone at its southernmost extent, which is believed to be part of a new feeder system.
In late October, the company closed a non-brokered private placement for C$4.5 million ($4.89 million), amid two drill rigs operating at the Eldorado West Project.
As Mining.com.au reported, the company issued 18 million units at C$0.25 each, comprising one share and one-half of a purchase warrant. Each purchase warrant is exercisable at C$0.30 within a five-year period.
In connection with the private placement with a strategic investment group, the parties will enter an investor rights agreement which will cover the investor’s rights to participate in future financing schemes and allow it to maintain pro rata ownership in the event of dilutive issuances.
The Eldorado Project, located near Vale in Malheur, Oregon, contains a historical resource estimate of 1.98 million ounces @ 0.753 grams per tonne gold.
Provenance Gold is a precious metals exploration company with a focus on gold exploration within North America. The company currently holds interests in Nevada, and eastern Oregon.
Write to Adam Orlando at Mining.com.au
Images: Provenance
