Drilling Confirms High Grade Shoot at Westralia
Sydney, Dec 11, 2013 AEST (ABN Newswire) - Dacian Gold Limited (
ASX:DCN) ("Dacian") is pleased to announce that recent broadly spaced diamond drilling at the Westralia deposit has intersected additional high grade gold mineralisation within the interpreted Millionaires Shoot.
Three holes were completed and results include:
- 13MMRD021 4.0m @ 21.9g/t Au from 490m including 1.0m @ 48.8g/t from 493m
- 13MMRD020 4.6m @ 4.2g/t Au from 519m
- 13MMRD022 5.0m @ 1.8g/t Au from 468.8m
The intersections lie directly down plunge of and correlate with the high grade mineralisation intersected by Dacian earlier in 2013. The previously reported Dacian holes include:
- 13MMRD003 17.08m @ 7.5g/t from 218.7m and 5m at 6.8g/t from 202m
- 13MMRD011 7.39m at 10.2g/t from 212.96m
- 13MMRD013 4.41m at 7.6g/t from 344m
- 13MMRD010 2.45m at 7.6g/t from 204.55m
- 13MMRD019 10.99m at 3.1g/t from 328.37m
- 13MMRD008 1.17m at 19.9g/t from 545.22m
- 13MMRD017 3.85m at 3.0g/t from 351.7m
The results confirm the continuity of a high grade shoot developed immediately below the south end of the Westralia pit over a vertical distance of approximately 500m and a strike length of approximately 200m. The new shoot is additional to the 364,000oz Mineral Resource reported at the deposit. A revised Mineral Resource estimate for the Westralia deposit is currently being prepared and is expected to be reported later in December.
Managing Director Paul Payne commented "These latest high grade results from Westralia add to our confidence that we have defined a substantial new lode position at Westralia. We anticipate a major upgrade to the Mineral Resource at Westralia which will form the basis for a preliminary mining study at the deposit commencing in 2014."
Westralia
Gold mineralisation at Westralia occurs within a well-defined banded iron formation (BIF) horizon from which in excess of 850koz was produced up to 1998. Sparse drilling beneath the southern end of the Westralia pit carried out during the 1990s had returned high grade gold intersections within an area measuring 1,000m along strike and 600m down-dip.
Gold mineralisation is associated with pyrrhotite and pyrite replacement of magnetite within zones of silica and albite alteration of the BIF. Previous mining at the deposit has demonstrated that the gold is free milling with good recoveries achieved from conventional CIL processing.
The deposit, including all Dacian intersections is shown in Figure 1 in link below.
Initial broad spaced drilling by Dacian (approximately 200m centres) intersected high grade gold mineralisation including the previously reported 5m at 6.8g/t and 17.08m at 7.5g/t in 13MMRD003. This was followed up with an initial five hole infill program which confirmed the continuity of high grade mineralisation in the upper 200m of the shoot termed the Millionaires Shoot. The results from that program included:
- 13MMRD011 7.39m at 10.2g/t from 212.96m
- 13MMRD013 4.41m at 7.6g/t from 344m
- 13MMRD010 2.45m at 7.6g/t from 204.55m
- 13MMRD019 10.99m at 3.1g/t from 328.37m
- 13MMRD017 3.85m at 3.0g/t from 351.7m
Three historic holes had been drilled into the shoot up to 300m beneath the Dacian drilling. The deepest of those was MPRCD0036 which intersected 11.87m @ 8.6g/t from 568.9m or approximately 530m vertical depth (Figure 1 in link below). It was interpreted that the high grade in that hole represented the depth extension of the Millionaires Shoot. To test for continuity of the shoot extension, Dacian recently completed a further three drill holes. All three holes intersected the target BIF horizon and two of the holes returned high grade gold intersections. The results from the latest Dacian drilling program include:
- 13MMRD021 4.0m @ 21.9g/t Au from 490m including 1.0m @ 48.8g/t from 493m
- 13MMRD020 4.6m @ 4.2g/t Au from 519m
- 13MMRD022 5.0m @ 1.8g/t Au from 468.8m
The high grade results in 13MMRD020 and 13MMRD021 confirm that the main part of the shoot displays good continuity of high grade gold mineralisation within a highly continuous BIF sequence. The intersection in 13MMRD022 is interpreted to be near or at the northern margin of the shoot, with a lower tenor of mineralisation.
The extension of the shoot defined by the Dacian drilling is south of the limit of historic mining and lies outside of the existing 364,000oz Mineral Resource. Figure 2 and Figure 3 are cross sections (Sections 10160N and 10240N as shown on Figure 1) showing the location of some of the recent Dacian drilling together with previously completed drilling. Importantly the cross sections show the significant extensions of the now drill-defined high grade mineralisation below the existing resource boundary and the zone remains open at depth.
In Figure 2, all intersections are outside the resource boundary and the deepest hole is a historic hole which intersected 11.87m @ 8.6g/t. In Figure 3, high grade gold mineralisation extends for over 400m below the resource boundary, with the deepest Dacian hole intersecting 4m at 21.9g/t, with mineralisation remaining open at depth.
Full details of the Westralia drilling intersections are included in Table 1.
The current Mineral Resource estimate for Westralia was completed in 2010 and comprises 364,000oz at a grade of 3.4g/t. Interpretation and modelling is currently underway to incorporate all of the Dacian drilling into a new Mineral Resource estimate. The revised estimate is due for completion during December 2013.
Ongoing Exploration Programs
At Westralia, drilling is continuing. One additional hole will be completed in 2013 targeting mineralisation along strike to the north of the Millionaires Shoot.
Drilling at the Jupiter Prospect has concluded for the year and results are awaited for the final 5 holes of the program.
To view diagrams and full resources statement, please visit:
http://media.abnnewswire.net/media/en/docs/ASX-DCN-661506.pdf
About Dacian Gold Ltd
Dacian Gold Limited (
ASX:DCN) Mt Morgans Project hosts high grade Mineral Resources of 2.1 million ounces at an average grade of 2.6 g/t gold, including Ore Reserves of 136,000 ounces at an average grade of 6.2 g/t gold. In addition, the Company has identified multiple exploration targets and resource extension opportunities. If proven, they will enable growth of the Mt Morgans' existing Mineral Resource and Ore Reserve base.
Dacian's strategy at Mt Morgans is evolving toward mine feasibility and potential mine development. It has identified two large mineralised systems at Westralia and Jupiter where it believes mine development at each site is a possibility, and will be the subject of ongoing drilling and feasibility studies. Dacian considers a high grade Ore Reserve of at least 600,000 ounces of gold is reasonably likely to provide sufficient returns to justify the investment capital required to construct an ore processing facility at the project.
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