Drilling Highlights Extension Potential at Goongarrie Lady
- 500m reverse circulation extension program completed at the Goongarrie Lady gold project, 85km north of Kalgoorlie in the Western Australian goldfields
- Three exploration drill holes testing up to 500m south of the current pit design all returned new and significant gold mineralisation(see Note 1 below):
o 2m @ 1.50 g/t Au from 32m, 1m @ 1.41 g/t Au from 45m, 2m @ 17.7 g/t Au from 47m and 2m @ 1.48 g/t Au from 68m (GLRC1804)
o 1m @ 2.34 g/t Au from 45m (GLRC1806)
o 1m @ 0.56 g/t Au from 43m (GLRC1805
- The three successful drill holes highlight the prospectivity of the southern Goongarrie Lady area in particular GLRC1804 where gold was panned from high grade quartz veins
- An initial 1,000m follow up program has been planned and will commence in the current September Quarter, aimed at linking the mineralisation with the current reserve envelope(see Note 1 below)
- Further drilling will also test a potentially new parallel lode to the east(see Note 1 below)
Commenting on the latest drill results, Intermin Managing Director Mr Jon Price said:
"These latest results have demonstrated the potential to extend the project to the south and we look forward to the results of the follow up drilling and assessing the impact on the current production profile and project economics."
The Goongarrie Resource is located on granted Mining Lease M29/420 within the highly prospective Bardoc Tectonic Zone that extends north from Kalgoorlie to Menzies. The gold mineralisation consists of a series of north striking, highly oxidised quartz bearing lodes that typically dip 45 degrees to the west and east. The lodes are situated on the highly sheared contact between mafic and felsic/sedimentary sequences.
There has been little historical exploration in the Goongarrie South area. The drilling over the last 30 years has been resource-focussed drilling around the Goongarrie Lady open cut, along with some old workings to the NNW of the pit.
Recent geological visits by Intermin to the Goongarrie South area during the last four months has identified prospective geology namely, gossanous textures associated with outcropping quartz veins, variable geology (high energy conglomerates, shales), intense shearing and a well-developed regolith.
These observations encouraged the Company to complete a small RC program with a third RC rig during June as part of the Feasibility Study sterilisation program given any new mineralisation discovered to the south of the current reserve envelope and mine design could enhance gold production and project economics. A Feasibility Study completed on Goongarrie Lady last month an open pit, toll milling operation producing 12,700 ounces of gold over a seven month mine life would be financially and technically viable(see Note 2 below).
As a result four holes were targeted into discrete areas approximately 100m south of the southernmost drilling Intermin completed last year (see Figure 1 in link below). GLRC1803 was targeted under a purported Au-As soil anomaly but failed to return a significant assay. GLRC1804 was successful in delineating 2m @ 17.7 g/t Au in thin quartz veins from 47m. Further encouragement is noted in this hole with three smaller supergene intersections all being over 1 g/t Au.
GLRC1805 (1m @ 0.56 g/t Au), 350m south of GLRC1804, appeared to hit a narrow band of supergene gold, but is consistent with a gold system being in the immediate area. GLRC1806 was drilled into an outcropping quartz vein and returned an encouraging 1m @ 2.34 g/t Au.
GLRC1806 is located about 250 east of the projected mineralised trend continuing southwards from the open cut and could possibly be a new, and untested mineralised structure.
GLRC1801 and 1802 were targeted under the waste dump, where some historic peripheral holes had picked up anomalous clays. These were tested below this, but no significant assays were received. Goongarrie Lady is interpreted to be closed off to the north.
Intermin plan to fast track drilling at the Goongarrie Lady South area with an initial 1,000m of RC drilling planned. The drilling will attempt to link up GLRC1804 and GLRC1805 to the projected mineralised trend south of the pit. Several holes will also test the ground around GLRC1806.
1 see Table 1 on Page 3, Competent Persons Statements on Page 4, Forward Looking Statement on Page 5 and JORC Tables on Page 6
2 as announced to the ASX on 28 June 2018
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About Intermin Resources Limited
Intermin Resources Limited (ASX:IRC) is a gold exploration and mining company focussed on the Kalgoorlie and Menzies areas of Western Australia which are host to some of Australia's richest gold deposits. The Company is developing a mining pipeline of projects to generate cash and self-fund aggressive exploration, mine developments and further acquisitions. The Teal gold mine has been recently completed.
Intermin is aiming to significantly grow its JORC-Compliant Mineral Resources, complete definitive feasibility studies on core high grade open cut and underground projects and build a sustainable development pipeline.
Intermin has a number of joint ventures in place across multiple commodities and regions of Australia providing exposure to Vanadium, Copper, PGE's, Gold and Nickel/Cobalt. Our quality joint venture partners are earning in to our project areas by spending over $20 million over 5 years enabling focus on the gold business while maintaining upside leverage.
Intermin Resources Limited