The company has now completed seven diamond drill holes at the prospect, which is part of the Comval Project, to test the down dip extent of a previously identified high grade gold bearing vein system.
Zeff Reeves, managing director, commented: "Drilling at Taub has confirmed the potential for the Taub/Ugpo area to host a near surface gold deposit.
"Down dip mineralisation has been intercepted in the first pass drilling, which is very encouraging given this is the first time the area has been drilled and little is known about the controls on gold mineralisation."
Two of the seven holes drilled at Taub intersected abandoned workings by artisanal miners in the predicted position of the quartz vein target.
This provides evidence that mineralisation exists and has extended the respective down dips.
All holes encountered narrow zones of anomalous gold and silver values within quartz stockwork and alteration zones.
While drilling indicates gold bearing veins and structures extend to depth, high grade zones as identified by previous surface trenching have not been intersected in this first pass drill program.
Further work is required to understand the controls on these high grade gold zones.
Expanding strike length
Meanwhile, the strike length of the gold bearing zone at Taub has been extended by a further 100 metres to the southwest.
High grade assays have been received for rock chip samples from historic artisanal tunnels and mineralisation has been identified in surface trenching.
Multiple gold targets
Mining Group has also uncovered other targets in the EP1 lease area through systematic geological mapping and surface sampling.
The EP1 area is showing evidence of widespread epithermal style gold mineralisation with high grade gold bearing vein systems identified at seven prospects.
An interpreted diatreme feature was also identified in the south of the lease at the Red Clay Prospect.
Reeves added: "High grade iron assays have also been received, coincident with copper and gold mineralisation from the skarn at Tagpura North, and we are examining the impact this may have on project economics."
Following the receipt of assays from an incomplete hole drilled at Tagpura North, a zone of significant iron mineralisation was identified with a number of samples returning values above the maximum of the assay method utilised.
This zone was coincident with gold and copper mineralisation within highly magnetic material.
Re-assay of the over limit samples has identified a wide mineralised zone returning a down hole intercept of 25.3 metres at 1.13 grams per tonne (g/t) gold, 0.34% copper, 2.22g/t silver and 34.71% iron; including 12.2 metres at 2.19g/t gold, 0.33% copper, 3.58g/t silver and 39.76% iron.
The iron mineralisation is highly magnetic and is composed mainly of magnetite with some hematite.
Iron content at these levels if associated with magnetite may have a positive economic impact on the project with similar mineralisation having been identified at the Tagpura East orebody.
The incomplete hole is currently being completed to the original planned depth after access was regained following recent heavy rains.
It is the first hole drilled into a magnetic anomaly of about 200 metres strike length.
Mining Group is planning to conduct preliminary testing of rock samples from Tagpura and Tagpura North to assess the viability of magnetite recovery from any future mining operation.
Given the number of targets now identified across the two leases over the last six months, the company is reviewing its strategy to ensure it identifies and tests the most prospective of these.
Additional mapping and geophysics may aid prioritisation of drill targets before committing to further drilling and are being reviewed.
Reeves said: "When Mining Group acquired the Comval Project, we focused almost exclusively on the old Tagpura mine workings, but have now identified 15 new targets we believe need further testing by drilling."
Taub is a newly discovered gold prospect about 7.5 kilometres north of the Tagpura copper deposit.
Mining Group previously identified a high grade gold bearing quartz vein system that continued for 300 metres of strike and is around 200 metres wide.
Trench samples confirmed the high grade potential returning up to 52.45g/t gold and 169.7g/t silver, including 4 metres at 17.75g/t gold and 51.45g/t silver.
While first pass drilling did not intersect high grade mineralisation, further exploration will assist Mining Group to understand the controls of these high grade zones.
The project may still be in its early stages, but the potential is evident with multiple targets identified and extensive surface mineralisation.
Should further drilling yield success in intersecting high grade gold mineralisation at Taub, this will provide a catalyst for the potential re-rating of Mining Group's current market value of $4.3 million and share price of $0.05.
Mining Group is currently trading at around 67%, or $0.03 per share, cash backing with A$2.6 million in cash at the end of the December 2012 quarter.
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