Quarterly Activities Report
Wabag Project PNG
Assay results for MCD008, which was drilled to a depth of 684.30m into a large low-grade porphyry system were received in the March Quarter with a very wide intercept of 239m grading at 0.10% Cu and 88ppm Mo, with spot highs of 0.32% Cu, 3,000 ppm Mo and 1.68 g/t Au was recorded in the hole.
Anomalous molybdenum (Mo) values are present to the end of the hole with the last 94m (From 589m to 684m) of MCD008 grading 133ppm Mo.
Drilling of MCD009 commenced in mid-January 2021 and was completed to a depth of 637m by the end of February.
- MCD009 intersected a tonalitic porphyry in the top 309m of the hole (Wale Batholith) and a strongly potassic altered micro-diorite from approximately 309m to 637m
- Evidence of porphyry mineralogy's including quartz, magnetite, epidote, and sulphide veins occur in MCD009
- Chalcopyrite and molybdenum have been observed along fracture surfaces and are also observed associated with quartz veining
- All the samples from MCD009 are at Intertek in Lae with results due back by mid to late-April
- Exploration work at Mt Wipi is ongoing with a soil sampling programme well advanced, results from the soil sampling programme are expected back in late April 2021
- Once all the data from the soil programme has been analysed and interpreted GMN will then be able to identify drill targets at Mt Wipi
MCD008 was completed to a depth of 684.30m in mid-December 2020. All the assays have now been received from this hole. Results have returned the longest +0.10% Cu intercept recorded at the Monoyal-Mongae prospect to date with a 239m zone assaying 0.10% Cu and 88ppm Mo (from 279m). Spot highs of 0.32% Cu (470 to 471m), 3,000ppm Mo (631 to 632m) and 1.68 g/t Au (89m to 90m) were also recorded.
MCD008 intersected wide zones of low-grade copper mineralisation with associated Mo mineralisation. The Molybdenum mineralisation is persistent and extensive with the last 94m of the hole assaying 133ppm Mo.
MCD009 was completed to a depth of 637m. The hole was stopped at this depth due to the limited depth capability of the rig combined with adverse ground condition. The hole intersected the Wale Batholith, Figure 3, in the top 309m of the hole and at sporadic intervals for the rest of the hole. The tonalite appears to be intruded by a micro-dioritic intrusive, Micro-diorite (577.0m) showing qtz-pyrite-chlorite vein (LHS) and quarts - pyrite-Moly vein (RHS) at 437.40mFigure 4 or is part of a less fraction part of the Wale batholith.
All the samples from MCD009 have been transported to Intertek in Lae, and assay results for MCD009 results expected back in mid to late April.
Based on what has been observed in MCD009, GMN will design additional drill holes to test the Wale batholith further with the aim of intersecting economic levels of mineralisation.
Mt Wipi (EL2632)
Exploration on the Mt Wipi tenement is ongoing, with a soil sampling grid covering the Waa Creek area. The grid is designed to cover a distinct magnetic low within a well-defined structural corridor is nearing completion. The area covered by the soil grid also contains anomalous gold stream sediment results and channel samples from sections along Waa Creek which returned highly anomalous copper and gold mineralisation.
The assay results from the initial reconnaissance stream sediment sampling programme within the Waa Creek area at Mt Wipi identified anomalous gold from drainages emanating from a magnetic low feature identified within EL2632 centred on Waa Creek. Strongly anomalous gold values to 439ppb Au (MWD003) were returned, with other anomalous sites located up to 1.6 km from MWD003 in adjacent drainages (MWD002, 54ppb Au and MWD006, 41ppb Au).
Exploration and Evaluation Expenditure
During the reporting quarter, the Company spent approximately $845,000 on exploration and evaluation activities on the Wabag Projects PNG.
The Company initiated a fresh capital raising program that reached its momentum after the current reporting quarter.
The Company received funding commitments after the reporting quarter from sophisticated investors and certain interest groups for placement issue of shares potentially raising up to $3.1 million, of which a total sum of $1.06 million placement funds received is acknowledged with shares being issued at $0.04. An announcement for the Proposed issue of securities will follow shortly.
Further equity securities will be issued as and when the placement funds are received.
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About Gold Mountain Ltd
Gold Mountain Limited (ASX:GMN) is an Australian, publicly listed company exploring for world-class, porphyry copper-gold-molybdenum deposits in the highly prospective Papuan Mobile Belt (PMB) in Papua New Guinea.
Gold Mountain Ltd