KalGold nails broad gold hits near Kalgoorlie

Kalgoorlie Gold Mining drilling in progress at Pinjin.

Kalgoorlie Gold Mining (ASX: KAL) has nailed some broad zones of gold mineralisation in fresh drilling at its Pinjin project, 140 kilometres northeast of Kalgoorlie in WA.

Results from 21 reverse-circulation (RC) drill holes for 3702m have extended the known footprint beyond the company’s existing combined JORC inferred resource estimate for its Kirgella Gift and Providence deposits of 2.34 million tonnes at 1 gram per tonne (g/t) gold for 76,400 ounces of gold.

The 28m headline result came from one hole in the central part of Kirgella Gift and includes 4m at 2.08g/t from 24m. That intercept sits inside a wider 38m envelope grading 0.89g/t gold from 19m. The same hole also produced 5m at 1.24g/t from 97m, including 1m at 2.50g/t gold from 99m, hinting at potentially more than one mineralised zone.

Within the adjacent Providence ground, south of Kirgella Gift, the best drill hit delivered 13m at 1.54g/t gold from 44m, including 1m at 2.40g/t gold from 44m and also included 2m at 3.71g/t from 54m. That intercept occupies a broader envelope comprising 25m going 0.90g/t gold from 39m.

A third deeper hole also returned 7m at 1.39g/t gold from 160m, including 4m at 2.04g/t gold from 160m and also gave up another 8m at 1.07g/t gold from 211m, including 1m at 3.52g/t gold from 215m, pointing to deeper potential below the current resource.

KalGold says the new work confirms mineralisation at both deposits extends beyond the present mineral resource estimate, remains open at depth and will help guide follow-up drilling and a future resource update.

The Kirgella Gift and Providence gold deposits continue to show strong potential, with infill and step out RC drilling extending the known footprint of gold mineralisation beyond the current MRE. Several holes returned broad zones of gold mineralisation enclosing higher grade intercepts at the southern end of Kirgella Gift and at Providence at depth.   Kalgoorlie Gold Mining Managing Director and CEO Matt Painter

The drilling also drilled the 250m-wide gap between the Kirgella Gift and Providence mineralisation with two holes to test for possible extensions from both deposits. Only minor anomalism was intersected in the gap, although the broader mineralised envelopes overlap and continuity between the two deposits may still exist at depth.

While RC drilling continues at Pinjin, the company is also progressing a first-pass aircore drilling campaign at its Laverton Tectonic Zone (LTZ) Flexure target, 3.5km southeast of Kirgella Gift-Providence. The program comprises up to 225 holes for 10,750m across 12 drill lines and is nearing completion.

The Flexure target centres on a gentle fold in the geological sequence within the LTZ. Such folds can create structural stresses that generate along-strike shearing, often reflected by demagnetised zones. The stresses can also produce other favourable structural targets. Combined, the structural settings in the flexure may provide conduits for gold-bearing fluids and subsequent mineralisation.

KalGold also has a program of up to 19 RC holes for 3200m in progress at its Lighthorse gold prospect just west of the Kirgella Gift-Providence resource, where previous work has defined mineralisation over 1.45km of strike.

The company’s Pinjin project and Flexure targets lie within the Laverton Tectonic Zone, a major gold-bearing structure stretching for 250km through WA’s Eastern Goldfields which hosts some of the region’s biggest gold deposits, including the celebrated Granny Smith, Wallaby and Sunrise Dam projects.

KalGold has reported a total JORC inferred mineral resource inventory of 214,300 ounces of gold across its WA projects, comprising 137,900 ounces at the La Mascotte deposit within its Bulong Taurus project 35km east of Kalgoorlie and 76,400 ounces at Pinjin.

The company reported $1.82M in cash with no debt at the end of the June quarter.

With assays now flowing from one front and the drill rods still spinning on two nearby targets, KalGold looks to have plenty of Pinjin news left in the tank as it works to show its patch of WA gold country has the scale potential to become much more than just a collection of promising drill hits.

Is your ASX-listed company doing something interesting? Contact: office@bullsnbears.com.au