- Meteoric Resources (MEI) has released its activities report for the March 2020 quarter
- The gold miner currently has roughly $7 million in cash and has taken cost-cutting measures such as pay cuts for senior staff
- Once given the all-clear, Meteoric plans to undertake a follow-up drilling program at its Juruena Project in Brazil
- The company hopes to expand the current high-grade Mineral Resource of 1.2 million tonnes at 6.3 g/t gold for 261,000 ounces
- The prospective yet under-explored Novo Astro Project underwent its first drilling program and result were mild — slightly disappointing the company
- It is now reviewing potential next steps
- Meteoric remains flat on the market with shares trading for 1.2 cents each
Gold miner Meteoric Resources (MEI) has released its activities report for the March 2020 quarter.
Just over one week ago, the company assured the market it remains in a strong financial position amid COVID-19 woes with roughly $7 million in cash as of March 31 2020.
To maintain its position, Meteoric is honing in on non-essential corporate and operational expenditures to ensure all spending is efficient.
As such, Board members and senior management have taken substantial pay cuts to protect the company’s positive cash position.
To mitigate COVID-19-related risks to its staff, Meteoric's Brazil team is actively working from home.
Juruena 2020 Program
Meteoric plans to focus its 2020 drilling program on expanding the high-grade resource at its Juruena Project in Brazil.
During the quarter, hole JUDD022 intersected significant high-grade mineralisation at a 300-metre depth and roughly 30 metres below the lower limit of the 2016 Mineral Resource Estimate. This confirmed the system continues at depth and below the resource.
Following receiving a lump of 2019 results during the quarter, Meteoric hopes to build on that and generate new targets beneath the current resource at the Dona Maria and Crentes prospects.
The 2020 drill program will test the depth extensions of a high‐grade steeply plunging shoot intercepted in 2019.
Highlights from this program included; JUDD001 ‐ 20.6 metres at 94.9 g/t gold from 96.8 metres including 3.65 metres at 508.4 g/t gold from 107.5 metres, JUDD008 ‐ 14 metres at 81.7 g/t gold from 142 metres including 2 metres at 71.6 g/t gold from 144.5 metres and 2.5 metres at 287.4 g/t gold from 149 metres.
The company also plans to test down-dip of hole JUDD010 which intercepted a zone of copper‐gold porphyry style mineralisation returning assays of 53.3 metres at 1.33 g/t gold and 0.23 per cent copper as reported in mid-December 2019.
"Our strong focus will be on the very exciting targets at Juruena and extending the existing high‐grade resource at Dona Maria and following up the exciting copper‐gold intersection in hole JUDD010 at Crentes," Managing Director Dr Andrew Tunks said.
The Tomate prospect is a north-south trending zone of gold mineralisation that has been extensively mined since the 1980s. Historic drilling by Lago Dorado and Crusader intercepted several zones of gold mineralisation. However, these were not considered for the 2016 Mineral Resource Estimate due to drill spacing.
Meteoric’s 2019 drilling confirmed a gold system was present striking approximately north-south with a higher‐grade portion in the central part of the structure.
However, results for hole JUDD020 that were received in the March quarter returned no significant intersections.
Geological interpretations made in the quarter concluded that the gold distribution was associated with a moderately north-plunging mineral lineation.
As these weren't tested last year, it provides a target for bulk tonnage open pit ounces for future drilling.
Juruena Mineral Resource Estimate
The 2019 drill results confirmed a high‐grade ore shoot at Dona Maria and the potential for Tomate to provide more ounces to the Juruena Resource.
The Juruena Resource currently stands at 1.2 million tonnes at 6.3 g/t gold for 261,000 ounces including the high‐grade resources at Dona Maria 216,000 tonnes at 12.7 g/t gold and Querosene 219,000 tonnes at 16.7 g/t gold.
Once the 2020 drilling program is complete, Meteoric will review the 2016 Mineral Resource Estimate.
The Novo Astro Project is located 30 kilometres east of Juruena in Brazil and covers a 15 square kilometre area.
Novo Astro’s first drilling program was designed to intercept mineralised corridors at depth. This prospect had never been drilled, despite artisanal workings and a major gold production history. A total of 14 diamond drill holes were completed for 2570 metres.
The drilling program intercepted a thick package of porphyritic granitic rocks crosscut by felsic porphyries and mafic dykes. Shear zones up to 5 metres were commonly observed in the drill cores marking major faults trending west-northwest and northeast.
Drilling also intercepted several intervals with low‐grade gold, including; 7.5 metres at 0.13g/t gold, 6 metres at 0.12g/t gold and 5.6 metres at 0.49g/t gold.
Within these results, however, a strong gold and silver, and copper, zinc, lead, bismuth and tellurium correlation was observed.
This association with low-grade gold and copper but high‐grade zinc was interpreted as related to either a distal porphyry environment or an Intrusion
Related Gold System (IRGS).
"The Novo Astro results to date have been disappointing especially given the area is the site of substantial artisanal gold production, was associated with a related multi‐element soil, auger and rock chip anomaly combined with strong alteration in drill‐cores," Andrew added.
Meteoric will review all data from the Novo Astro drilling to decide on next steps.
Additionally, Meteoric is reviewing potential acquisitions of highly prospective gold projects in Australia and beyond to add more value to its portfolio.
The company believes these projects will likely be ripe for the picking considering the global economy.
Meteoric remains flat on the market with shares trading for 1.2 cents each at 11:35 am AEST.