NewsCommodities & ForexAlbion Resources to begin maiden drilling at Gidgee gold project after 280.3 g/t rock-chip result

Albion Resources to begin maiden drilling at Gidgee gold project after 280.3 g/t rock-chip result

Author: The Market Online Australia·

Key Takeaways

  • Albion Resources has approval for a maiden drilling program at its Gidgee gold project in Western Australia.
  • The planned program comprises roughly 6,000 metres of air-core drilling and 1,000 metres of reverse circulation drilling.
  • Reconnaissance sampling produced 35 rock-chip assays, with six grading above 1.0 g/t gold.
  • The highest reported result was 280.3 g/t gold from the Phar Lap prospect.
  • The company said the new data have sharpened priority targets, including German Well South, Wilson Splay, Tokey Central, Phar Lap and Tokey North.
Albion Resources to begin maiden drilling at Gidgee gold project after 280.3 g/t rock-chip result

Albion Resources (ASX: ALB) is preparing to launch a maiden drilling campaign at its Gidgee gold project in Western Australia after reconnaissance rock-chip sampling returned high-grade gold assays, headlined by a result of 280.3 grams per tonne (g/t) gold.

The company has received approvals for the maiden drilling campaign, which comprises approximately 6,000 metres of air-core drilling and 1,000 metres of reverse circulation (RC) drilling and is designed to systematically test priority gold targets across the project. In exploration programs of this type, air-core drilling is typically used as a lower-cost, first-pass method to test geochemical targets through shallow cover, while RC drilling provides deeper, higher-quality bedrock samples.

The assays follow reconnaissance geological mapping and rock-chip sampling recently completed by Albion across a number of priority target areas at Gidgee as part of preparations for the upcoming drilling program. A total of 35 rock-chip samples were collected and submitted for assay, with six returning gold grades greater than 1.0 g/t Au. The standout result of 280.3 g/t gold came from the Phar Lap prospect, while other significant results included 4.79 g/t, 4.44 g/t, 1.58 g/t and 1.57 g/t gold from various prospects throughout the project. As with all rock-chip sampling, the samples are selective, taken from outcrop and vein material rather than a systematic grid; while they demonstrate the presence of high-grade gold at surface, they are not necessarily representative of average grades across a target, and establishing grade, width and continuity at depth requires drilling.

Chief Executive Officer Peter Goh said the new results demonstrate the occurrence of high-grade gold at surface across several areas of the Gidgee project. He noted that a number of the anomalous rock-chip samples show a spatial association with previously defined gold-in-soil anomalies and interpreted regional shear zones, a geological setting consistent with the structurally controlled, shear-zone-hosted gold deposits that are a mainstay of Western Australia's goldfields.

According to the CEO, the integration of the new rock-chip results with Albion's existing geochemical and geophysical datasets is providing additional geological information ahead of drilling and has further refined a number of priority targets, including the German Well South, Wilson Splay and Tokey Central areas, as well as the previously undrilled Phar Lap and Tokey North prospects.

The 280.3 g/t result at the Phar Lap prospect was collected from strongly weathered, iron-oxide-rich quartz vein material adjacent to historical workings, indicating the prospect area has seen earlier prospecting or mining activity.

ALB shares were steady at 5.5¢, with a market capitalisation of $7.985 million. With approvals in hand, the maiden program will provide the first drill test of the priority targets, with assay results from the air-core and RC drilling expected to show whether the surface gold indications extend along strike and at depth.