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

Hill End Gold: Continuation Of Known Gold Mineralisation Bodes Well For Resource Upgrade

Hill End Gold (ASX: HEG) has intersected gold along the northern extension of its Big Nugget Hill deposit, providing further evidence that it may host more Resources than the current currently defined 221,000 ounces.

Geological logging of the 11 holes drilled to date have confirmed that shallow gold mineralisation extends for at least 300 metres north of Big Nugget Hill at its Hargraves Gold Project.

Drill core from five of the 11 holes drilled to date have returned moderate assays of up to 7 metres at 2.4 grams per tonne (g/t) gold, 2 metres at 2.9g/t gold and 1 metre at 6.5g/t gold.

"The continuation of the known gold mineralisation at North Big Nugget Hill extends the prospectivity of the deposit and bodes well for increasing overall Resources at our Hargraves Gold Project," managing director Philip Bruce said.

"This is an important component of the Hargraves mine plan which we aim to submit to government by the end of 2012."

The five holes are located within 100 metres of the northern limit of the Big Nugget Hill resource with Hill End noting the coarse gold content of the mineralisation and the different sized sub-samples taken for fire and LeachWell assay techniques could have introduced some variability in the reported assays between the techniques.

Further news flow Is likely to come from the other six holes that have been drilled so far, which intersected visible gold in quartz. This includes the shallow portion of the mineralisation in diamond hole CMH-DDH9, which returned 1.1g/t gold over 23.5 metres from 30 metres below surface.

Three more holes remained to be drilled in the current program, which was aimed at testing the interpreted northern extension of Big Nugget Hill on 50 metre spaced sections to a depth of 100-150 metres.

Hargraves Gold Project

Hill End's strategy for the Hargraves Gold Project is to outline a Reserve on the Big Nugget Hill deposit as the basis for a Pre-Feasibility development plan for a mining lease application.

Exploration has to date focused on the Homeward Bound Prospect, which is 3 kilometres north of the Big Nugget Hill deposit, though regional exploration is now being directed towards the 6 kilometre long Meroo Trend.

The Meroo Trend is parallel to the Big Nugget Hill structure and links several prospects defined by historic mine workings, namely Eldorado, Hampden Hill, Homeward Bound and Great Western.

Near-term focus

Optimisation studies carried out at Hargraves indicate the potential for a moderate size open pit.

Hill End's near term focus is to increase its Resources inventory and develop commercial production. The company is aiming for mine plan submission to the Government by the end of 2012.

This now appears likely with the early success of its drilling program.

Hargraves has shown the potential for large gold deposits below surface with mineralisation open at depth and along strike.

Proactive Investors is a market leader in the investment news space, providing ASX "Small and Mid-cap" company news, research reports, StockTube videos and One2One Investor Forums.