MW : Significant new project in W. Australia's gold capital buoyed by more high grade intercepts
Integra Mining Ltd (ASX: IGR) said today it believes it has a probable feeder structure at the Salt Creek deposit which is part of the company's Aldiss-Randalls gold project, 60 kilometres east of Kalgoorlie.
The latest drilling included an intercept of 7.2 metres grading 11.62 grams/tonne from a perceived feeder structure to the known Salt Creek deposit. "The grade of this intercept does not include sampling of a large 8 mm piece of visible gold in the half-core retained for reference," the company said.
Other drill hits from latest RC and diamond drilling included 17.02m @ 13.02 g/t, including 1.05m @ 164 g/t; 33.96m @ 4.34 g/t, including 4m @ 16.33 g/t; and 17.84m @ 2.73 g/t gold.
Integra's managing director Chris Cairns said a large number of RC and diamond drill holes have been completed as part of a confirmation drilling programme, designed to increase confidence in the volumes and grade of gold mineralisation.
"Additional drilling is in-progress to further confirm this (feeder) structure but it is apparent that the structure may ‘pinch and swell' as it passes through host units that are more ductile or more brittle respectively; and that the structure may host extremely high grades of gold mineralisation associated with coarse grains of visible gold," he said.
The Aldiss-Randalls project already has consolidated mineral resources of 1.8 million ounces at an average grade of 2.7 g/t gold, with 72% of resource ounces in the indicated resources category.
There was also a significant grassroots discovery at Salt Creek located within a new 8 kilometre-long gold trend, and high grade resources have been outlined at the adjacent Randalls project.
Integra purchased the old New Celebration gold plant near Kambalda and had it dismantled and reassembled and ready for refurbishment and installation at the Salt Creek site.
Cairns said a completed feasibility study had displayed robust project returns with an internal rate of return of 71%. He said the open pit production grade of 3.1 g/t gold was expected to be the highest open pit production grade of any similar scale of development in Australia.
