Stratum Metals (ASX: SXT) is preparing to commence the second stage of drilling at the Gidgee Gold Project on March 18, to follow up on high grade intercepts.
Following the Stage Two drilling program, a resource modelling and estimation exercise will be undertaken, aimed at establishing a JORC Resource for the German Well South prospect.
Results from the first stage of drilling, released at the end of 2011, included bonanza grade intersections such as 1 metre at 60.9 grams per tonne (g/t) gold, within a broader intersection of 8 metres at 8.89g/t gold from 41 metres.
Other highlights from stage one drilling included:
- 3 metres at 5.02g/t from 76 metres;
- 6 metres at 4.35g/t from 95 metres; and
- 5 metres at 3.03g/t gold from 79 metres.
Managing director Martin Holland told Proactive Investors today that Stratum hasn't yet reached the hard rock, where high grade, thicker intersections of gold are likely to be found.
The first phase of Stage Two drilling will comprise 42 holes for a total 6,200 metres drilling, aimed at expanding on the identified mineralisation at German Well South.
Drilling will be completed to a depth of 250 metres, as opposed to the 160 metres previously drilled.
First phase drilling is expected to be completed by the end of March, and will likely be followed up with about 4,000 metres of phase two drilling.
Results from the Stage Two drilling program, expected in May, will generate a dataset that will be used to determine the Resource.
The drilling program follows on from the recently completed MMI soil sampling program.
A total of 656 samples were collected in the field and will be submitted for analysis this week.
Results are expected in about four weeks.
The program comprised two components, a close spaced test to identify continuations of previously identified mineralisation, and broader line spacing to assess the general prospectivity of the project area.
Depending on the results, an infill sampling program is likely to commence in May or June this year.
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.
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.