Westgold Resources (ASX: WGX) says its Bluebird-South Junction gold system in Western Australia’s Murchison region is continuing to grow on the back of a new diamond drilling campaign featuring hits of up to 20.94m at 6.74 grams per tonne gold.
The headline intercept from 681.86m is supported by solid hits in four other notable deep holes in the South Junction program, confirming what the company says is a southwards extension of the mineralisation under the open pit. The other results include 19m at 4.73g/t gold from 596m, 7.9m at 5.20g/t from 592m, 8.1m at 4.31g/t from 656m and 6.27m at 3.76g/t from 641.42m.
They form part of a building pattern with a pierce-point spacing in long-section of about 120m. In addition to the latest assays reported, at least six other holes have been put in below that pattern and analyses are still pending. If the results are positive, they will carry the previously untested southwards plunge potential into open ground even deeper, to a maximum vertical depth of about 800m.
To fit that mould, the company has already planned a new pattern at an initial pierce-point spacing of about 150m to some 800m depth to further infill the plunge into the untested deeps. Only two deeper holes have been put in, to about 940m depth under the “gap” zone between the South Junction and Bluebird open pits, and mineralisation is still assumed to be open below those holes.
The Bluebird-South Junction gold system is growing rapidly and drilling continues to identify multiple gold lodes of significant width and grade. The most recent Mineral Resource update lifted contained ounces by 134% to 827koz and this latest program is continuing to infill and extend the resource.
Westgold Resources Managing Director and CEO Wayne Bramwell
Bramwell went on to explain that the potential contribution from South Junction is considerable and while the current drill program is not expected to be completed for up to three months, results are already bringing about a re-evaluation of what the operation’s expansions should look like.
Historic mining of multiple lodes yielded more than 1 million ounces of gold from the area that is being mined from underground by the company and the current drilling is exploring down-plunge extensions. While the bulk of the historic mining exploited the smaller Polar Star lode, Westgold’s drilling is exposing the South Junction lode system as being significantly bigger.
Management says it has drilled 26 holes for about 20,000m and it still has about 6000m remaining to complete the current program.
Importantly, it adds that while the current mineral resource estimate for the Bluebird-South Junction operation is 6.4 million tonnes at 3.1g/t gold for a total of 827,000 ounces, the numbers don’t include data from the current South Junction drilling.
The current drilling program is a planned upgrade and extension campaign in a bid to lift the current mineral resources prior to updating the mineral resource and ore reserves estimates by the end of the first quarter next year.
Westgold envisages a much bigger and potentially long-lived operation at its Bluebird-South Junction operation as the mine footprint remains open at depth and its seemingly relentless advance down-plunge at South Junction is opening up potential new development fronts.
With its current drilling program about 75 per cent complete, assays for six holes yet to be returned and 13 new deep holes to be drilled, it will be interesting to see how the down-plunge advance proceeds and what it builds the resources to when all the data is back.
Development drilling is continuing at South Junction and Westgold expects first ore contribution from its lodes in the second quarter of next year. Such a development could herald an increase in the operation’s current 500,000 tonnes per year ore production via a new decline into South Junction.
Is your ASX-listed company doing something interesting? Contact: office@bullsnbears.com.au