Join our daily newsletter At The Bell to receive exclusive market insights
- Red 5 (RED) will begin a new program of exploration and resource drilling to test a series of priority gold targets at the Darlot Gold Mine
- This program will test the Cables and Mission and Great Western gold deposits
- A total 50 reverse circulation and 20 diamond drill holes will be undertaken for more than 11,000 metres of drilling
- Red 5 has ended the day up 5.77 per cent with shares trading for 27.5 cents apiece
Red 5 (RED) will begin a new program of exploration and resource drilling to test a series of priority gold targets at the Darlot Gold Mine.
The program will test gold targets at the Cables and Mission, and Great Western gold deposits which are both subject to recent option agreement.
Work will also be undertaken at the Ockerburry and Darlot Project tenements.
Data obtained from the drilling will be used to assess and rank targets for the prioritisation of the next stage of exploration drilling and resource development.
This upcoming drilling will consist of 7800 metres of reverse circulation (RC) and 3300 metres of diamond drilling for a combined total of 11,100 metres.
“The new regional surface drilling program at Darlot is an important addition to our already expanded drilling program for FY2020 – which includes a previously announced budget of 120,000 metres of planned drilling across the King of Hills and Darlot Assets,” Red 5 Managing Director Mark Williams commented.
“The addition of over 11,000 metres of surface exploration and resource drilling reinforces our commitment to delivering growth through exploration,” he added.
The Great Western deposit is located within Mining Lease M37/54 and has a reported JORC 2012 compliant mineral resource totalling 709,000 tonnes at an average grade of 2.72g/t gold for 62,000 ounces of contained gold.
A part of the due diligence to potentially acquire the project, Red 5 is planning to drill test the mineral resource with three RC and three diamond holes.
Gold mineralisation at Great Western is associated with a series of laminated quartz veins, up to 10 kilometres thick, forming a series of sub-vertical to steeply south dipping lodes.
The deposit has been defined by drilling over a strike length of 450 metres and a depth of 200 metres with mineralisation still open at depth.
The Cables and Mission gold deposits are located approximately 10 kilometres north of the Darlot-Centenary Gold Mine, within the Yandal Greenstone Belt.
Both deposits are partially associated with magnetic high anomalism which appears to be part of a fold structure located at a bend section of the Taranaki Fault.
At Cables, historical drilling comprising mainly of aircore (AC) and RC drilling defined a significant north-northwest trending gold anomaly which extends along strike for 1.6 kilometres.
Significant mineralisation coccus as primary and oxide gold is associated with quartz veining and pyrite alteration hosted predominantly in dolerite.
Deeper RC and limited diamond drilling have intersected significant primary gold mineralisation associated with steep, sub-vertical north-west trending reverse faults which are inferred in historical models.
Historical AC drilling at the Mission Prospect has been successful in defining a significant north to northwest trending oxide gold anomaly which extends 800 metres along strike.
A review of historical drilling data suggests that both Cables and Mission are not closed off and remain open along strike and down-dip.
The Dingo Ridge prospect is located approximately 20 kilometres northwest of the Darlot Mine Site and lies at the northern end of the Ockerburry Shear Zone.
This prospect is defined by a four kilometre long and 500 metre wide north-northwest trending gold mineralisation zone which has been cut off and offset by a late east-west trending dyke.
Previous drilling at Dingo Ridge is confined to mainly shallow rotary air-blast, AC and RC drilling which was designed to test the oxide zone for supergene enrichment.
Many of these shallow drill holes end in significant mineralisation and deeper drilling remains limited to date with only a small number of RC drill holes have been drilled the oxide zone.
This planned drill program will test for mineralisation below the Dingo Ridge gold anomaly.
This target area is indicative of a significant hydrothermal system and is considered to be an excellent structural trap for mineralising fluids.
Drilling will also test the Ockerburry Shear and potential northeast trending structures at depth in fresh rock, providing key structural data to allow for improved interpretation and understanding of vein style, orientation, and economic potential.
Past drill results of the Shear include 4 metres at 9.7g/t gold, 5 metres at 8.14g/t gold, and 10 metres at 1.8g/t gold.
“These programs have the potential to quickly grow our resource base, make new discoveries and provide us with further targets for future follow-up,” Mark said.
“This multi-pronged strategy is consistent with our objective to meaningfully increase the mine life of the Darlot Operation – as part of our overall target of having two long-life, high-quality gold production centres operating in parallel as the cornerstone assets of a multi-asset, mid-tier gold producer,” he concluded.
Red 5 has ended the day up 5.77 per cent with shares trading for 27.5 cents apiece in a $323.7 million market cap.
