Provenance Gold (CSE:PAU) is progressing towards expanding the Eldorado Gold Project’s resource potential with the completion of the first infill and step-out reverse circulation drill (RC) holes.
The Vancouver, Canada-headquartered explorer – which has a market capitalisation of C$29.9 million ($33.6 million) – has now completed the first two holes in the phase-one program.
A third hole has so far been drilled 201m in mineralised rock.
The initial drill holes are focused on expanding the known mineralisation and improving the interpretation of key structures within the mineralised system.
RC drilling is testing down-dip and lateral extensions of the mineralised structures, with step-outs of about 50m designed to evaluate both continuity and expansion potential.
Provenance plans to drill a fourth hole to test the continuity between two key high-grade zones intersected in two holes in the 2024 campaign, followed by additional step out drilling.
The company says it has confirmed a strong correlation between gold mineralisation and fracture density within the host diorite.
Zones of increased fracturing have enabled greater fluid flow, resulting in more intense retrograde alteration accompanied by higher concentrations of pyrite and gold.
These zones correspond with dominant northeast and north-south trending structural corridors, which Provenance says has been further validated by recent high-resolution drone magnetic inversion data.
The Eldorado Project is located about 60km northwest of Vale in Malheur County, Oregon.
It hosts a pre-NI-43-101 non-compliant resource estimate of 1.98 million ounces at 0.753 grams per tonne gold.
Provenance says the “large-scale” surface mineralised system remains open in all directions.
Earlier in May, the company increased the size of the project with the staking of additional ground and securing an option agreement over the Sunday Hill Property, which includes the historical 231,000-ton Sunday Hill Mine where a near-surface gold-bearing zone averaging 23.15g/t was previously discovered.
Provenance Gold is a precious metals exploration company with a focus on gold and silver mineralisation in North America. The company currently holds interests in Nevada and eastern Oregon.
Write to Angela East at Mining.com.au
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