Toro Energy Limited (ASX: TOE) has announced a highly encouraging update from the drilling programme at the Golden Ways target of its Yandal Gold Project in WA.
The company reported that a significant quartz vein gold system was confirmed at Golden Ways target area on the Yandal Gold Project.
Some of the best drill results include 8m @ 0.65g/t gold from 97m, including 2m @ 2.3g/t from 100m downhole (hole TERC12); and 1m @ 3.18g/t gold from 80m downhole (hole TERC11)
The company said that TERC12 intersected quartz vein that continuously outcrops at the surface for over 500m in length suggesting significant volume is possible. TOE noted that historical shallow workings along vein suggest higher grades are achievable.
The company reported that TERC11 intersection has no surface expression indicating mineralisation is not limited to veins observed at the surface.
TOE said that the detailed surface mapping shows the Golden Ways Target Area has the potential to contain several vein hosted gold deposits. The company announced that an extensive exploration programme is being planned for 2020 at Golden Ways Target Area.
Yandal gold project
The Yandal Gold Project is located within the world class gold district, the Yandal Greenstone Belt, less than 35km NE of the multi-million ounce Bronzewing Gold Mine, in Western Australia. The project is only 50km east of the world class Mt Keith Nickel Mine.
The project comprises over 143 km2 of contiguous and untested yet highly prospective exploration ground, in the high yielding Yandal Gold District.
Important target areas of Yandal project include Christmas, Shadow Rock, Golden Way, November Rain, Maze, and Mako.
Drilling at Golden Ways
The company had recently commenced a maiden drill programme at Golden Ways.
TOE reported that four reverse circulation (RC) drill holes, TERC09, TERC10, TERC11, and TERC12, were completed for a total of 792m.
Among them, drill holes TERC09, TERC10 and TERC11 aimed to test anomalies and alteration from historical drilling, while TERC12 aimed to test a large outcropping quartz vein that was prominent at the surface for over 500m and contained a number of shallow historical workings.
Detailed surface mapping
Toro reported that during the drilling campaign, it also undertook detailed surface mapping around the Golden Ways Target Area, and further south across the entire exploration tenement, E53/1211, that incorporates Golden Ways in its north.
The company said that gold assays from grab samples off RC drill chip piles were previously reported, and analysis of the complete downhole geochemistry of drilling has confirmed and expanded on the previous results, with the interval of gold mineralisation being significantly thicker than anticipated, through the targeted outcropping quartz vein.
High-grade drill results
Toro Energy announced high-grade drill results from Golden Way target.
TOE reported that drill hole TERC12 showed that the targeted quartz vein and associated gold mineralisation was substantially thicker at depth than at the surface, intersecting quartz veining from approximately 95m downhole from the west, over 14m to 109m downhole on its eastern edge.
The company said that gold mineralisation was evident throughout the interval culminating in 8m @ 0.65g/t Au from 97m downhole, including 2m @ 2.3g/t from 100m, within the more quartz rich zone.
Toro reported that trace gold was found throughout the entire length of TERC12, with further intervals of significant anomalism including 1m @ 0.22g/t from 63m downhole, associated with a zone of clay alteration within the surrounding meta-basalt and 4m @ 0.072g/t from 157m downhole, associated with silica and carbonate alteration.
The company said that the mapping of the vein at the surface showed that it outcrops continuously for approximately 500m. Toro said that significant vein gold mineralisation may be present within this single vein system.
The company announced that hole TERC11 intersected significant gold mineralisation including 1m @ 3.18g/t Au from 80m downhole (4.35g/t from a grab sample from drill pile of same interval) and 1m @ 0.37g/t Au from 81m downhole.
TERC11 was drilled only 76m to the south of TERC12, away from the outcropping vein to the west, but towards favourable alteration encountered in historical drilling.
Updates and next steps
TOE reported that due to the success of the first drilling campaign, it is now using detailed mapping data along with existing magnetic geophysics to plan further drilling at Golden Ways.
Toro said that the details of the nature of future work at Golden Ways and the rest of the Yandal Gold Project are currently being assessed.
Loan maturity date extended
The company announced that it has concluded negotiations with Sentient to extend the maturity date of the $6,000,000 loan made available to the Company by Sentient.
As per the negotiations, the Company has agreed to repay $1,000,000 of the Sentient Loan now and Sentient has agreed to extend the maturity date for the balance of the Sentient Loan to 31 December 2020, or such later date as the parties may agree in writing.
TOE said that it has also agreed to issue 120,388,021 fully paid ordinary shares in the capital of the Company in satisfaction of interest payable on the Sentient Loan up to the date of 2 February 2020.
Toro Executive Chairman, Richard Homsany, said: “The drill results from our maiden drill programme at Golden Ways, Yandal Gold Project, demonstrate the significant opportunity presented by the Project in this high yielding district, and its potential to contain several vein hosted gold deposits. We look forward to further high grade results, with an extensive exploration programme currently being planned for 2020.”