Please Note: Blog posts are not selected, edited or screened by Seeking Alpha editors.

Stratum Metals strikes high grade gold of 60.9g/t at Gidgee North in the Yilgarn

Stratum Metals (ASX: SXT) is unveiling the potential of the Gidgee North project with first drilling intersecting high grades at shallow depths at the German Well, German Well North and German Well South prospects.

Significant intersections include:
- 8 metres at 8.89 grams per tonne (g/t) gold, including 1 metre at 60.9g/t, 4 metres at 4.25g/t and 1 metre at 11.25g/t from 41 metres;
- 3 metres at 5.02g/t from 76 metres; and
- 6 metres at 4.35g/t and 3 metres at 1.77g/t from 95 metres.

Importantly, the mineralisation appears to be open at depth and potentially along strike.

Managing director Martin Holland told Proactive Investors today these are outstanding results for the company and, more importantly, they are at a shallow depth.

“The interesting part about it is we haven’t hit the hard rock yet. So we’ve just gone through the soft stuff which is saying there’s potential for quite a large resource underneath us once we hit the hard rock,” he said.

“Our plan is to put together another drilling program to hit the hard rock and drill a bit deeper to see if those grades continue at depth because we’re currently open at top and mineralised at depth as well.”


Gidgee Gold Project

The Gidgee Gold Project is located 640 kilometres northeast of Perth, in the Yilgarn region of Western Australia which has a long history of gold production and produces about 6% of Australia’s gold.

The project consists of E53/1440 at Gidgee South and E53/1494 at Gidgee North and lies near to Panoramic Resources (ASX: PAN) Gidgee Gold Project, which has a mining camp and process plant with a capacity of 600,000 tonnes per year of ore.

Stratum's plan is to fast track development of gold resources at Gidgee North and most likely strike a deal to utilise a nearby plant for ore processing.

With first drilling at the project completed, and a second campaign to start soon there exists potential for earlier low cost production given a nearby gold treatment plant.


ASX Newcomer

Stratum Metals hit the ASX boards on October 11 after completing a fully subscribed IPO for 20 million shares at $0.20, raising $4 million.

Just one month after listing the company added substantial shareholder Elinora Investments to its register after it purchased 2.35 million shares for A$451,000. This purchase gave Elinora a total holding of 5.72% in Stratum.



Article originally published at: http://www.proactiveinvestors.com.au/companies/news/23073/stratum-metals-strikes-high-grade-gold-of-609gt-at-gidgee-north-in-the-yilgarn--23073.html