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  • Millennium Minerals Hits 24g/T Gold At Golden Gate, From Drilling 0 comments
    Aug 25, 2013 9:27 PM

    Gold producer Millennium Minerals (ASX: MOY) will trade higher on the news of high-grade gold and broad widths of mineralisation being discovered at the Golden Gate project area.

    Golden Gate forms part of the company's Nullagine gold project in the Pilbara Region of Western Australia.

    Millennium recently commenced mining operations at Golden Gate, and the latest results from the Condor, Crow and Harrier deposits deliver the potential to increase Resource's and Ore Reserve's for all three deposits.

    At the Condor deposit, multiple shallow, oxide intersections and ore-grade rock chip samples indicate excellent potential for substantial pit extensions along strike, with intercepts including: 8 metres at 7.39g/t gold from 22 metres, including 2 metres at 24g/t gold.

    Over on the Crow deposit, results indicate a new parallel lode located to the southwest of the existing Crow deposit. Highlights include: 5 metres at 3.70g/t gold from 49 metres.

    Finally at Harrier deposit, results indicate gold mineralisation is still open to the northwest of the deposit and there is potential for modest extensions to the current pit design in this area.

    This deposit delivered broad areas of mineralisation such as: 21 metres at 6.96g/t gold from 6 metres, including 3 metres at 20g/t gold; and 19 metres at 2.51g/t gold from 39 metres.

    Millennium is now planning an additional 2300 metres of reverse circulation drilling at the Condor, Crow and Harrier deposits.

    The significance of these deposits is that they are 33 kilometres to the northeast of the now fully operational 1.5 Mt per annum CIL gold processing facility at Golden Eagle.

    Pre-mining activity and grade control drilling commenced recently on the ABC and D Reef deposits as a pre-cursor to mining operations starting late August.

    Millennium Minerals' rights issue

    Millennium currently has a 2 for 21 non-renounceable rights issue underway, which is fully-underwritten and will raise $6 million.

    The offer price is $0.32, and is a considerable discount to the $0.40 last traded price.

    Analysis

    The importance of the latest gold discoveries at Condor, Crow and Harrier deposits is the potential to increase Resources and Reserves.

    These deposits are located just 33 kilometres from Millennium's fully operational 1.5 Mt per annum CIL gold processing facility at Golden Eagle.

    Proactive Investors Australia is the market leader in producing news, articles and research reports on ASX "Small and Mid-cap" stocks with distribution in Australia, UK, North America and Hong Kong / China.

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