Westgold Resources Limited (ASX:WGR) Strong Gold Drilling Results Continue At Central Murchison Project
Perth, May 12, 2011 AEST (ABN Newswire) - Westgold Resources Limited (
ASX:WGR) has received further encouraging high grade gold results from Jim's Find prospect, located approximately 1km east of the previously mined City of Chester open pits confirming a new mineralised shear occurs in this poorly drill tested area.
Results show the strong gold mineralisation increases in grade within the fresh bedrock beneath near surface supergene gold mineralisation in the overlying oxide profile.
Significant results include:
- CDRC0711: 3 metres @ 6.86g/t Au from 61metres
- CDRC0687: 5 metres @ 6.51g/t Au from 82 metres
- CDRC0704: 9 metres @ 3.25g/t Au from 36 metres
- CDRC0698: 7 metres @ 2.46g/t Au from 55 metres
The results demonstrate the open pit potential remaining within the Central Murchison region where at least 20 km of untested strike length of various mineralised shear zones remain to be tested.
The Central Murchison Project contains current total resources of 2.0M ounces of gold and includes 614,000 ounces of underground reserves.
Westgold's Central Murchison development strategy is to define sufficient open pit reserves to allow the commencement of mining as early as 2012 and to supplement the existing long life underground reserves.
PROJECT IMPACT - EXPLORATION FOR SHALLOW GOLD DEPOSITS
The Central Murchison Gold Project has past production of 5M ounces of gold with approximately 800,000 ounces mined from various open pit mines in the Cuddingwarra area. The overall project area currently hosts a further 2.0M ounces of total identified mineral resources including 614,000 ounces of underground reserves.
Westgold's strategy is to build a centralised processing plant, and re-commence mining at the project. Production will be sourced from the two underground mines at Big Bell and Golden Crown/Great Fingall integrated with open pit production targeted to commence as early as 2012. In this context the Company is currently re-evaluating remnant resources below previously mined open pits, existing near surface resources and continuing exploration for new shallow resources within the project area.
The new drilling results occur in the Cuddingwarra Goldfield, at Jim's Find along a previously unknown mineralized shear zone that occurs approximately one kilometre east and parallel to the previously mined open pits at City of Chester. The new drill results indicate the gold grades increase at depth within the fresh bedrock.
Over 20km of untested shear zones are interpreted to remain in the Cuddingwarra region alone and form only part of the additional potential contained within the overall Central Murchison project area. Further drilling along this new structure will be undertaken in May.
LATEST DRILL RESULTS
Previous wide spaced drilling, east of the City of Chester mining centre, identified three anomalous gold areas coincident with structural dislocations evident in magnetic surveys.
Targeting the northernmost anomaly, the drilling has confirmed the continuity of a number of subparallel gold bearing structures over a 300 metres strike length and open to a depth of 100 metres.
Further drilling is planned to test the depth extensions of the mineralisation and the two remaining anomalies.
The shallow intercept 9 metres @ 3.25g/t Au from 36 metres along with historic intersections of 16 metres @ 2.38g/t Au from 32 metres and 4 metres @ 2.33g/t Au from 13 metres occur within a weathered shear zone and confirm the potential to host additional supergene open pit style deposits typical of that mined elsewhere in the goldfield.
These structures remain open along strike and at depth. The new results, 3 metres @ 6.86g/t Au from 61 metres,, 5 metres @ 6.51g/t Au from 82 metres, 7 metres @ 2.46g/t Au from 55 metres and the previously reported intercept 8 metres at 4.33g/t Au from 66 metres are hosted in a brecciated mafic rock unit, indicating a strongly mineralised primary gold system at depth.
For the complete Westgold Resources Limited including tables and figures, please refer to the following link:
http://www.abnnewswire.net/media/en/docs/67446-ASX-WGR-541291.pdf
About Westgold Resources Limited
Westgold Resources Limited (ASX:WGX) is a dynamic and responsible explorer and developer of gold mines operating in the prolific goldfields of outback Western Australia.
Westgold typifies the world-leading mining technology, ingenuity and pioneering attitude that Australia's mining industry is renowned for by uniquely being the owner-operator of its mines and projects.
Our overall business has two main pillars - gold operations in the Murchison region of Western Australia and a specialised wholly-owned underground mining services arm - Westgold Mining Services.
We strive to create wealth for our shareholders with a respectful and grateful manner knowing we are the custodian of their assets and resources.
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