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KalGold out to match historic Eastern Goldfields finds

Updated: Apr 19

Kalgoorlie Gold Mining has launched a drill campaign at its Pinjin gold project. Credit: File

Kalgoorlie Gold Mining has got straight down to work in a new drilling campaign at its Pinjin gold project in Western Australia’s Eastern Goldfields, plunging two holes on the first day in a bid to mirror glittering historic results.

The new program is aimed at extending thick, shear-hosted gold mineralisation at Kirgella Gift along strike and down plunge and confirming historic assays at Providence, between 300m and 500m further south.

Pinjin covers a substantial portion of the southern part of the highly-prolific Laverton Tectonic Zone that hosts some of the Eastern Goldfields’ biggest gold mines and deposits further to the north.

Kirgella Gift sits between Hawthorn Resources’ Anglo Saxon open-pit mine about 15km to the north, and Ramelius Resources’ Rebecca gold development project some 21km to the south. Anglo Saxon boasts a probable ore reserve of 730,000 tonnes at 2.66 grams per tonne gold for 62,000 ounces, while Rebecca boasts an eye-watering 775,000 gold ounces, of which 550,000 are classified in the indicated category.

KalGold plans to put 12 reverse-circulation (RC) holes into the two prospects for a total of about 1840m of drilling. Kirgella Gift features shallow high-grade mineralisation that is open along strike, with historic drill results including 33m at 3.1g/t gold from 51m downhole.

The company sunk three RC drillholes holes into Kirgella for 355m earlier this year, yielding respective intercepts of 38m at 1.86g/t gold from 73m, 35m at 1.71g/t gold from 43m and 12m at 1.71g/t gold from 11m.

The Laverton Tectonic Zone houses a stellar cast of world-class gold deposits, including Gold Fields’ 8.3-million-ounce Granny Smith gold mine and Anglogold Ashanti’s 3.6-million-ounce Sunrise Dam. It has been estimated the entire zone contains a whopping 30 million ounces of the precious yellow metal.

At Kirgella and Pinjin South, tenure is the subject of a farm-in during the next two years to expand upon known mineralisation. Under the agreement, KalGold can secure its 75 per cent portion by spending at least $1.4 million in drilling and related activities in the first two years.

After a year, the company then has the option to mop up the entire deal for $1.65 million, with 50 per cent paid in cash and handing over the remaining 50 per cent in shares.

Mineralisation at Kirgella begins at a relatively shallow depth of 40m, where it is interpreted to remain open to the south. Additional mineralisation has already been detected at Providence and the company is optimistic that it reflects a continuous gold trend trapped underground between its two prospects.

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