Strategic Minerals Corporation (ASX: SMC) has begun its 2012 drilling program at the Woolgar Gold Project in Queensland targeting areas within the historic Woolgar mine workings in the mesothermal gold mineralisation, along and adjacent to the Woolgar fault zone.
The company had $2.45 million of cash at the end of the June quarter for its exploration program.
Strategic Minerals is aiming to delineate sufficient near surface Resources within the mesothermal zones to pave the way for a Scoping Study for mine development.
The drilling program is expected to comprise around 10,000 metres of infill and extension drilling in the prospect areas drilled in 2010/2011, as well as the targeting of new areas for exploration drilling.
Drilling will target the Mowbray/Big vein structures, located within the historic Woolgar goldfield, about 8 kilometres to the west of the Sandy Creek epithermal vein system.
The 2011 drilling at the Mowbray NE prospect produced a best result of 17 metres at 2.28 grams per tonne (g/t) gold from 32 metres, including 5 metres at 4.29g/t.
Meanwhile, previous drilling in 2008 and 2011 has located gold resources in the Big Vein prospect area, with further along strike potential.
The planned along strike drilling at the southern end of the Big Vein will attempt to follow this gold mineralised vein zone under the thin Jurassic sandstone capping.
Strategic Minerals' drilling program will also cover the Brien Shear structure located further to the northeast along the Woolgar fault zone, about 6 kilometres to the northwest of the Sandy Creek epithermal vein system.
Initial drilling has intersected a number of gold mineralised vein zones along the structure.
The 2011 drilling at the Brien Shear prospect produced a best result of 10 metres at 1.41g/t gold from 24 metres, including 3 metres at 3.49g/t.
The gold mineralisation of the Brien Shear is located in a wide zone of alteration providing the potential to locate larger widths of gold mineralisation than those currently encountered.
Union Prospects and Cross Vein zones
The Union South, Union, and Union North prospects are located north of the Brien Shear structure.
Previous drilling at the Union South prospect produced a best result of 2 metres at 4.88g/t gold from 24 metres, and a number of other significant intersections were also encountered.
Despite only narrow intersections so far, these results together with the good widths of altered granite logged indicate the possibility to locate larger widths of gold mineralisation than those encountered to date.
New prospects that may be included in the drilling for 2012 are the Union and Union North prospects.
Strategic Minerals will also target the Cross Vein zones to the Woolgar Fault zone, including the Perseverance and Roman Crown prospects.
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