Australian Gold and Copper (ASX: AGC) has confirmed two gold-silver-rich zones within oxide mineralisation located approximately 35 metres west of the main base-metal-rich zone at the Evergreen prospect, part of the South Cobar project in New South Wales.

The South Cobar project sits within the Cobar mineral field, a long-established mining district in central western New South Wales known historically for copper, gold, and base-metal production. The discovery of higher-tenor gold and silver in a structural zone separate from the known base-metal mineralisation adds a second mineral style for the company to evaluate within the same project area.

The company has immediately moved a reverse circulation (RC) rig to the area to further test the discovery, including a scissor hole and holes testing along strike to the north and south. A total of nine RC holes have now been completed, with additional holes planned as gold mineralisation remains open to the south, and further assay results are pending.

Managing Director Glen Diemar said the new results are among the best gold intersections recorded at the Evergreen prospect to date, and that AGC remains well funded to continue testing the newly identified zone.

“These are very encouraging shallow gold results. The Browns–Evergreen project is six km in length with more than 25 km of historic drilling,” Mr Diemar said.

“The intercept of 13.6m at 4.6g/t Au and 23g/t Ag from 51.4m ranks as one of the strongest gold results returned from the project to date.

“Our drilling has already uncovered numerous previously unknown mineralised structural zones, each with a differing mineral character. This western mineralised zone looks to have higher tenor gold and silver and we are now excited about the drilling along strike.”

Mr Diemar said the results are particularly encouraging because mineralisation remains open to the north, south, and at depth.

“We also have a further seven completed diamond holes with assays pending and nine recently completed RC holes which will be important in defining the scale and continuity of the Evergreen system.

“With RC drilling now testing the shallow oxide zone, AGC is rapidly advancing Evergreen towards an initial mineral resource estimate.”

A reverse circulation drill rig continues to test the shallow weathered oxide zone, targeting near-surface mineralisation, and has been positioned to further target this zone, including a scissor hole and numerous holes along strike to the north and south.

An initial mineral resource estimate, if achieved, would represent a key milestone for the project, providing a formal quantification of mineralisation that typically underpins subsequent scoping and development studies. In the interim, the pending assays from the seven completed diamond holes and nine RC holes are the next datapoints investors and observers can expect from the program.

AGC shares were steady at 13.0 cents, with a market capitalisation of $43.09 million.