Silver Swan Group (ASX: SWN) is looking to further unlock the potential of the high grade Stakewell Gold Project in the Murchison region of Western Australia, with a new reverse circulation program to kick off next week.
Replete with $5 million in cash from a recent capital raising, Silver Swan will drill three new targets for testing at the project, along with a focus on extensions to existing gold lodes.
Recent high grade gold intercepts from drilling by Silver Swan at Stakewell appear to have been completely overlooked by the market including:
- 8 metres at 5.7 grams per tonne (g/t) gold, including 5 metres at 8.6g/t gold from 22 metres;
- 7 metres at 5.8g/t gold, including 4 metres at 9.9g/t gold from 34 metres; and
- 10 metres at 3.2g/t gold, including 5 metres at 5.3g/t gold from 259 metres.
While high grade gold intersected by previous reverse circulation drilling included:
- 7 metres at 23.7 g/t gold from 86 metres;
- 7 metres at 10.3g/t gold from 30 metres; and
- 8.5 metres at 9.0 g/t gold from 207 metres.
Located on five granted mining leases, including the historic Kohinoor mine (over 66,000 ounces mined), Stakewell has a number of mines in the region including Mt Magnet, Cue, Big Bell, Yaloginda, and Gabinintha.
Of even more interest to Silver Swan, two under-utilised mills are nearby (Burnakura and Yaloginda) to Stakewell, that require oxide feed.
Drilling earlier in the year by the company targeted to confirm and expand upon high-grade gold intersections encountered in historic (1980-1990) reverse circulation drilling.
The drill holes tested parallel and potential un-mined gold-rich lodes adjacent to the Kohinoor pit, along with extensions of the lode beneath the open-pit and test areas in which underground mining activity was planned - with all of these aims achieved.
At the nearby Quinns VMS Project which covers 45 square kilometres, the rig will also prepare collars to 100 metres at the Flinders and Murchison Wonder VMS prospects, followed by diamond drilling to test EM and off-hole conductor targets.
Quinns hosts six identified VMS prospects, along with the known Austin deposit with a Resource of 1.48 million tonnes at 1.02% copper, 1.39% zinc, 0.24g/t silver, 3.31g/t gold - which importantly remains open at depth and along strike.