Drilling Confirms Larger Gold System at Westralia
Perth, Oct 15, 2014 AEST (ABN Newswire) - Dacian Gold Limited (
ASX:DCN) ("Dacian" or "the Company") is pleased to announce that its widely-spaced reconnaissance diamond drill program testing for Banded Iron Formation (BIF) hosted gold mineralisation along strike of, and below, the mineralisation at the Westralia and Morgans North gold deposits, has returned several significant intersections. The Westralia deposit was discovered in 1896 and produced 900,000 ounces of gold up to 1998. Both Westralia and Morgans North are BIF-hosted gold mines.
A total of 14 diamond drill holes for 9000m were drilled to a depth of between 140-680m below surface. The exploratory drill holes tested a 3km strike of BIF and have confirmed the mineralised BIF horizon at Westralia is appreciably larger than previously recognised.
The drilling program is consistent with Dacian's stated FY2015 Exploration Strategy to:
(i) Define the mineralisation limits of new discoveries on the Cornwall Shear Zone at Jupiter and Millionaires at Westralia, and
(ii) Define the size of the ore systems at Jupiter and Westralia.
Figure 1 in link below shows the location of the planned drill holes in relation to the existing Westralia and Morgans North deposits. The marked "Interpreted Flattening Zone" between Westralia and Morgans North was considered by previous operators to mark the end of the Westralia deposit and is defined as where the BIF changes from a steep east-dip into a more moderate east-dip (hence it being described as flattening). Importantly the full extent of the flattening zone has never been confirmed by drilling, and was an interpretation at the time that limited the known extent of the Westralia mineralisation.
The purpose of the drilling program as planned by Dacian's geologists, and shown in Figure 1, was to test the possibility that the Westralia and Morgans North ore positions belong to a larger ore system, and that the "Interpreted Flattening Zone" may be an internal fault offset giving the appearance that Westralia and Morgans North are two separate ore bodies.
Dacian is of the belief that if the results of the drill program were to show that mineralisation existed away from Westralia and toward Morgans North, then it may be possible both deposits belong to a larger, more extensive ore system. The results of this drill program support this new interpretation.
DRILLING RESULTS
Figure 1 shows the location of the widely spaced diamond drill program testing a 3km strike of BIF for extensions of the Westralia deposit. The holes were spaced at approximately 300m centres and tested the BIF at between 140 and 680m below the surface.
Table 1 in link below is a summary of the key results returned from all holes. Note that three drill holes have assays awaited. More detailed information relating to the drill holes including additional intersections is shown in Table 2 and the requisite JORC table as Appendix I of this report.
The Company considers the results to be highly significant and notes the following observations:
- Of the holes returned from assay, six of eleven testing a 3km strike of BIF have intersected high grade mineralisation over good widths. Four holes returned low to moderate grade intersection and widths, and only one hole failed to return gold mineralisation.
- All intersections are hundreds of metres away from existing resources and /or mine workings.
- Four of the five holes drilled in the 800m long poorly drill-tested "gap" between the northern end of Westralia and Morgans North intersected high grade mineralisation (14MMRD024, 14MMRD025, 14MMRD026W1 and 14MMRD027).
- The northern section of drilling testing a 1.7km segment of BIF from beneath Westralia (at 10800mN) to the Morgans North deposit (12500mN) returned high grade mineralisation from six of nine holes completed, confirming a large zone of high grade mineralisation may be present.
- All but one of the holes tested between 100m and 400m below the previous limit of drill testing over the 3km strike (14MMRD017).
- It is clear the Westralia mineralised footprint is significantly more extensive than previously identified.
- Hole 14MMRD022 also intersected 13m @ 3.7 g/t in the Ramornie Structure 175m below the previous deepest drilling at Ramornie (see ASX announcement made on 9 October 2014: Westralia Drilling Intersects High Grade Ramornie Structure 175m Below Historic Drilling).
Importantly, the results of Dacian's drilling show there is high grade mineralisation in areas previously thought to be devoid of mineralisation. Dacian will undertake additional drilling to determine the extent of mineralisation continuity and to more properly locate and understand the significance of BIF dip changes.
SUMMARY AND NEXT STEPS
High grade mineralisation over good widths returned from Dacian's 14 hole 9000m diamond drilling program has confirmed the Westralia gold mineralised system is significantly larger than previously recognised. The Company believes the Westralia and Morgans North mines are part of a single larger ore system developed over a strike distance of at least 3km. Vast areas within the 3km strike down to a depth of 700m below surface were previously undrilled and are now known to contain high grade gold mineralisation. The mineralisation remains open at depth
There is an excellent opportunity for material resource growth at Westralia through a dedicated infill drilling program. Prior to commencing infill drilling, the Company will assess the results of a comprehensive down hole-TEM survey completed on 18 Dacian drill holes over the 3km trend.
Consistent with Dacian's stated FY2015 Exploration Strategy, the Company has completed a further six holes for 2,100m to extend the mineralisation limits of the Millionaires Shoot at Westralia. Five holes were drilled to the south of resource boundary on 10080N, and within 250m from surface, and one hole up-dip underneath the existing Millionaires pit. The Company's geologists are currently logging the core and results will be subject to a further announcement.
To view tables and figures, please visit:
http://media.abnnewswire.net/media/en/docs/ASX-DCN-694876.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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