Westralia Drilling Intersects High Grade Ramornie Structure
Perth, Oct 9, 2014 AEST (ABN Newswire) - Dacian Gold Limited ("Dacian" or "the Company") (
ASX:DCN) is pleased to announce a new drilling result from the Ramornie project on its 100% owned Mt Morgans Gold Project, located 40km west of Laverton in Western Australia's north-eastern goldfields.
A key exploration objective for Dacian in FY2015 is to better understand the potential size of the Westralia ore system. As part of this objective, Dacian commenced a 14 hole 9,000m Westralia framework diamond drilling program aimed at testing a 3km strike of the highly prospective Westralia BIF.
Drilling targeted the BIF horizon along strike and below the defined ore positions at Westralia, at depths of between 150 and 700m below the surface. One of the drill holes completed, 14MMRD022, passed through the projected position of the Ramornie shear zone below the Ramornie open pit. The drill hole returned a significant intersection 175m below the previous deepest drill intersection at Ramornie and is located approximately 400m into the hangingwall of the Westralia BIF, (see Figures 1 and 2).
New Ramornie Drill Hole Intersection
The new Ramornie intersection within drill hole 14MMRD022 returned:
- 25.9m at 2.4 g/t Au from 335m; including
- 13.9m at 3.7g/t Au from 347m; or
- 4.4m at 6.8g/t Au from 356.5m.
Figure 2 is a cross section showing the location of the new Ramornie intersection in 14MMRD022 beneath the previously drilled holes. Significantly, the new intersection is 175m below the previous holes and confirms strong continuity of moderate width and high grade for in excess of 400m of dip extent.
The intersection also confirms excellent potential exists for discovering new mineralisation immediately beneath the 700m strike extent of the Ramornie Structure which is host to two small historically mined open pits (see Figure 1). The geology observed in the 14MMRD022 intersection is very similar in appearance to the biotite-pyrite altered shear zone seen in the open pits, and along the 2km trend defined as the Transvaal - Ramornie Corridor (see also Figure 1 in link below).
The drill results are further described in Table 1 and Appendix I of this announcement. (link below)
Summary and Next Steps
Dacian is presently preparing an exploration update of the major 9,000m Westralia framework drilling program as well as compiling the last results of the 56 hole RC drilling program recently completed at Jupiter. Following the release of these drilling results, Dacian will reprioritise its infill drilling programs for the December quarter activities. It is expected that infill drilling in and around this new Ramornie intersection will be part of the ongoing exploration activities.
To view figures, please visit:
http://media.abnnewswire.net/media/en/docs/ASX-DCN-694247.pdf
About Dacian Gold Ltd
Dacian Gold Limited (
ASX:DCN) Mt Morgans Project hosts high grade Mineral Resources of 2.1 million ounces at an average grade of 2.6 g/t gold, including Ore Reserves of 136,000 ounces at an average grade of 6.2 g/t gold. In addition, the Company has identified multiple exploration targets and resource extension opportunities. If proven, they will enable growth of the Mt Morgans' existing Mineral Resource and Ore Reserve base.
Dacian's strategy at Mt Morgans is evolving toward mine feasibility and potential mine development. It has identified two large mineralised systems at Westralia and Jupiter where it believes mine development at each site is a possibility, and will be the subject of ongoing drilling and feasibility studies. Dacian considers a high grade Ore Reserve of at least 600,000 ounces of gold is reasonably likely to provide sufficient returns to justify the investment capital required to construct an ore processing facility at the project.
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