Mithril Resources Managing Director David Hutton has announced that drilling will get underway - well ahead of schedule - at the Company's newly acquired Spargos Reward Gold Mine in the Eastern Goldfields of Western Australia.
Mithril Resources Ltd(ASX:MTH) is pleased to advise that a 1,300 metre Reverse Circulation (RC) drill program to test the extensional potential of the high-grade Spargos Reward Gold Mine has commenced. A second drill program to test regional targets south of the mine is planned for early 2013.
The drilling follows the successful completion of the acquisition process for the gold mine and surrounding tenements (Spargos Reward Gold Project) whereby Mithril purchased the project for $200,000 in cash.
The project is located 25 kilometres west of Kambalda, and 16 kilometres north along strike from Ramelius Resources’ operating Wattle Dam Gold Mine, in the Eastern Goldfields of Western Australia (Figure 1).
Spargos Reward was previously mined to a vertical depth of 120 metres (underground and open pit) with total production of approximately 29,257 ounces @ 8g/t gold. The mineralisation occurs within two parallel shear zones (the Western and Main Lodes) which have been previously drilled on 25 – 50 metre spaced sections throughout the mined area to an average depth of 140 metres.
Near Mine Targets – drilling underway
Geological modelling indicates that there is excellent potential to extend the deposit at depth and along strike with only broad spaced drilling completed by previous explorers outside the mined area (Figures 2 and 3). Better historic drill results include (down hole widths)*:
? 8m @ 3.11 g/t gold from 21 metres in 09BKWC007 including 2m @ 10.14 g/t gold from 27 metres (Western Lode);
? 8m @ 2.89 g/t gold from 86 metres in 09BKWC010 including 2m @ 6.65 g/t gold from 86 metres (Main Lode);
? 3.3m @ 9.82 g/t gold from 196.7 metres in KWDD007 (Main Lode);
? 13m @ 3.7 g/t gold from 338 metres in SRD005 including 5.5m @ 5.86 g/t gold from 338 metres (Main Lode); and
? 23m @ 2.1 g/t gold from 475 metres in SRD002 including 7.0m @ 4.94 g/t gold from 476 metres (Main Lode).
The current drill program is designed to test both the continuity of mineralisation between existing drill intercepts and confirm the extensional potential of both lodes.
Regional Targets – drilling next quarter
Four kilometres south of the mine, a number of priority targets have been identified from a review of historic data (Figure 4). Comprising surface soil anomalism developed over favourable structures and geological rocktypes, the targets have been previously tested by wide spaced, largely ineffective (shallow) drilling. Importantly, several high-grade drill intercepts are present which remain open in all directions and as such, require further evaluation i.e.:
? 1m @ 27.2 g/t gold from 5 metres in SRC13;
? 1m @ 48.5 g/t gold from 2 metres in SRB988 (hole ended in mineralisation); and
? 0.5m @ 7.7 g/t gold from 44 metres in SRB171 (hole ended in mineralisation).
Field checking of these regional targets will be undertaken in conjunction with the current program, and it is anticipated that drill testing will take place early in 2013.
Managing Director’s comment
Commenting on the announcement, Mithril’s Managing Director, David Hutton said: “The commencement of drilling on the newly acquired Spargos Reward Gold Project represents a new strategic focus for Mithril, and the work compliments exploration activities also being carried out on the Company’s Illogwa IOCG Area in Central Australia. Results from the current near – mine program are anticipated by mid – January 2013, and Mithril looks forward to informing the market at that time."
Competent Persons Statement:
The information in this report that relates to Exploration Results and Mineral Resources is based on information compiled by Mr David Hutton (Managing Director), who is a full?time employee of the Company and a Fellow of the Australasian Institute of Mining and Metallurgy (AusIMM). Mr D Hutton has more than five years’ experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2004 Edition of the “Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves”.
Mr Hutton consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.
- Intercepts are quoted as down hole widths and are not true widths
- Drill holes are historic and as such analytical methods are unknown
- Drill hole locations were determined using a handheld GPS achieving +/- 4 metre accuracy - MGA datum (Zone 51)
Mithril Resources Ltd
Mithril Resources Ltd is an Australian exploration company focused on the discovery and development of base metal deposits - primarily nickel and copper. Mithril is a frontier explorer in the Northern Territory and Western Australia, with an experienced team operating out of Adelaide.
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Richard SproullP: (08) 8267 6888
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