YTC Resources (ASX: YTC) has intersected a 6 metre zone of very strong lead-zinc sulphide mineralisation, including a 2 metre zone of massive lead-zinc sulphides, at its Hera Gold Deposit in the Cobar Basin, with assays confirming bonanza grade results.
Highlights include 4.75 metres at 0.34 grams per tonne (g/t) gold, 359g/t silver, 10.9% lead and 22.2% zinc from 350.78 metres; and 1.9 metres at 0.89g/t gold and 601g/t silver from 364 metres.
The hole was drilled between two earlier holes that produced high grade results and lies less than about 200 metres north of the existing Hera resource.
The Hera North zone remains open down plunge and follow-up drilling is underway.
YTC has previously received New South Wales Government approval for its Hera Gold Project, which is set to generate gross revenues of around A$510 million in Stage 1 at very low costs of just $395 per ounce after lead and zinc credits.
A Definitive Feasibility Study has confirmed Hera as a financially and technically robust project producing gold-silver doré bars and a bulk lead-zinc concentrate.
The project hosts a reserve of 423,471 gold equivalent ounces at 7g/t and a resource of 677,200 gold equivalent ounces at 8.6g/t and has a 7.3 year mine life producing 391,000 gold equivalent ounces.
Pre-tax operating profit would equate to $94.8 million at a gold price of A$1,450 an ounce, or $152 million at a gold price of A$1,750 an ounce.
Nymagee strikes gold
In other positive news for YTC, the northernmost hole drilled at the company's Nymagee Joint Venture, also in the Cobar Basin, has returned three discrete poly-metallic intersections, with two of these intersections recording substantial gold mineralisation for the first time.
Notable intersections returned were:
- 11 metres at 1.1% lead and 2.5% zinc from 167 metres;
- 18 metres at 1g/t gold, 23g/t silver, 0.9% copper, 0.6% lead and 1.3% zinc from 431 metres, including 1 metre at 11.3g/t gold, 26g/t silver and 1.8% copper; and
- 6 metres at 0.5g/t gold, 149g/t silver, 5% lead and 11.6% zinc from 512 metres.
The recognition of high grade gold mineralisation with copper, lead and zinc mineralisation is considered very significant for the potential of Nymagee North which remains open to the north and at depth.
Nymagee North lies about 500 metres north of the existing Nymagee resource. Follow up drilling to the north of the most recent drill hole is now underway.
Rimas Kairaitis, managing director, commented on the positive results: "Drilling continues to extend both the Hera and the Nymagee deposits, suggesting strong potential for the delineation of further economic mineralisation with ongoing exploration.
"The strong results from Nymagee North continue to suggest that YTC has intersected the upper parts of a new Cobar system. The recognition of high grade gold at Nymagee for the first time is particularly encouraging."
YTC recently announced a maiden resource at Nymagee of 8.1 million tonnes at 1.2% copper, 0.3% lead, 0.7% zinc and 9g/t silver.
The Joint Venture includes the Nymagee Copper Mine which last operated in 1918, and has recorded historical production of 422,000 tonnes at 5.8% copper.
YTC has a 95% interest in the Nymagee Joint Venture tenements and is the manager and operator of the joint venture.
With the results today, YTC should move back onto investor radars. The odds are strong that YTC will define further economic mineralisation at Hera and Nymagee. Results from Nymagee North are intriguing as it would appear that YTC has intersected a new Cobar system.
Hera project permitting is also entering its final stages with the company expecting Part 3A approval shortly.
There are significant milestones and catalysts to move the current share price of $0.28, including outcome of advanced negotiations on project funding as well as drilling of new targets at Nymagee. In addition, drilling of new EM targets is underway at Hera.
With $15 million in cash at quarter end YTC is well funded to advance to milestones. Proactive Investors believes on its current resource and milestones that YTC should be valued at closer to $0.35-$40 and has been oversold.
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