- Carnaby Resources (CNB) shares take a tumble on the back of an interim update regarding exploration work at the company’s Strelley Gold Project in WA
- CNB is awaiting results from 13 reverse circulation holes (RC) amid laboratory delays
- Despite the set back, Managing Director Rob Watkins says initial results from broad spaced drilling at the Bastion prospect are encouraging
- Shares are down 10.9 per cent to 28 .5 cents apiece
Carnaby Resources (CNB) shares took a tumble this morning following an interim update on exploration at its Strelley gold project in Western Australia’s Pilbara region.
The company is still awaiting results from 13 reverse circulation (RC) holes, which make up 60 per cent of its program, due to slow laboratory turnaround of two to three months.
In the interim, CNB said single-metre re-split results from the Bastion prospect had confirmed high-grade gold mineralisation hosted by an intrusion that remained open to the north.
One of these holes returned two metres at 5.21 grams of gold per tonne (g/t) from 85 metres and included one metre at 9.75g/t gold from 85 metres, and four metres at 0.5g/t gold from 130 metres.
Additional drill results were also received from a further five RC holes at Bastion, including up to three metres at 2.27g/t gold from 90 metres.
In its update today the company said drilling on the Bastion trend was extremely wide spaced with the eastern mineralised contact of the intrusion only intersected in a few RC holes, 800 metres apart, with results still pending for several holes.
Notably, CNB said sampling of the Bastion, NE Shear and Big Hill prospects had identified several new undrilled gold in soil anomalies.
Despite the delays, Carnaby Resources Managing Director Rob Watkins said the early results were promising.
“It is early days at the Bastion Prospect gold discovery and we are extremely encouraged by the initial results on such a broad drill spacing,” he said.
“We eagerly await the remaining 13 RC drill hole results and start of the 5000 metres of RC follow up drilling program at the end of this month.
“We also look forward to recommencing drilling at the Greater Duchess copper project in Queensland where a 4000-metre RC and diamond program is planned for this quarter.”
Following the announcement, shares fell 10.9 per cent to trade at 28.5 cents each at 11:52 am AEDT.