Kalgoorlie Gold Mining (ASX: KAL) has hit thick, near-to-surface gold running as high as 28m at 1.27g/t from 36m in air-core (AC) drilling at its Pinjin play near Kalgoorlie in Western Australia’s Goldfields region.
The company now believes it may be onto an extension of a bigger gold system being mined in adjacent ground by Hawthorn Resources, where 62,000 ounces have been pulled from open pit operations and 157,000 ounces sit underground.
Other high gold hits within the 28m gold-rich section at Pinjin include 8m at 1.9g/t from 44m and 8m at 2.15g/t from 56m. Another 12m-thick section graded 1.17g/t from 52m including 4m at a solid 3.07g/t from 56m.
KalGold says the latest batch of assays are from the Wessex prospect within its wider Pinjin project and are exceptional for AC drilling results, representing the enormous potential of the area. Even more encouragingly, they come from the first-pass drilling effort at Wessex.
Management says the mineralisation at Wessex shares similar shape, geometry and style of gold mineralisation to Hawthorn’s Anglo Saxon mine and remains open along strike both to the north and south and down-dip to the east.
These results, in addition to the shallow gold mineralisation currently being incorporated into an initial JORC Code (2012) Mineral Resource Estimate at Kirgella Gift and Providence, highlight the incredible prospectivity of KalGold’s Pinjin Project.
Kalgoorlie Gold Mining managing director Matt Painter
The recent drilling success at Wessex is just 11km north of Kirgella Gift and Providence, leading to the tantalising proposition that KalGold could be drilling in just a small part of a much bigger mineralised system.
The company plans to soon be back drilling again with an AC or reverse-circulation (RC) rig, with hopes of expanding the mineralisation envelope at Wessex. It currently sits at about 800m by 250m of aerial extent, but remains open in the direction of the Anglo Saxon mine.
The other prospect within the Pinjin project, Harbour Lights, returned more subdued gold values in assay, but the company says they are still encouraging and warrant follow-up drilling.
Pinjin sits about 140km north-east of the company’s namesake, the mining mecca of Kalgoorlie, in the prolific Laverton Tectonic Zone that hosts some of WA’s biggest gold deposits.
One such behemoth is Ramelius Resources’ 1.1 million-ounce Rebecca project, which sits 21km along strike to the south of Pinjin.
Since the beginning of this month, the price of gold has been sitting consistently above the $3500 per ounce mark and is still trending upwards. On Monday, it gave $3700 a nudge but fell slightly short.
But after bottoming out at about $3560 yesterday, who knows where the next high will be? Today, it is sitting at about $3590.
Some analysts suggest they can’t imagine a better situation for the gold price to go higher. And a circulating photograph of China’s president Xi Jinping hugging Russian President Vladimir Putin this week floats the idea of a multipolar world unreliant on the dollar.
KalGold is certainly in an advantageous position nestled between gold giants, with paydirt of its own awaiting a maiden mineral resource estimate. And it is a great time to be boasting ounces of the precious yellow metal.
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