Chalice Gold Mines Limited (ASX: CHN) has reported significant new drilling results from the Karri Target at its 100%-owned Pyramid Hill Gold Project in the Bendigo Region of Victoria.
Managing Director, Alex Dorsch, said the promising results achieved to date on the extensive 4km long Karri gold trend has led the company to order a third rig to commence drilling in mid- March at Pyramid Hill.
“Our momentum in Victoria continues to build, with another round of exciting drill results,” Mr Dorsch said.
“The potential for a high-grade gold system at Karri is now supported by the highest-grade gold intercept from the project to date of 1m at 15.85g/t Au.
“This result is especially important as it lies at the centre of a new 4km long, continuous gold trend that is yet to be tested at depth.
“We expected the likelihood of intersecting primary gold zones to increase as our air-core hole spacing progressively tightened up, given that primary gold zones in the Bendigo Zone are typically less than 15m wide.
Drilling has indeed now identified several higher grade primary gold zones within the widened main gold trend, providing immediate targets and justification for an extension of our maiden diamond drill programme.
“The first ever diamond hole at Karri has encountered tight folding of Castlemaine Group sediments, which are a key feature of the large gold deposits in the Bendigo Zone.
“The presence of this structural setting at Karri further upgrades the target and gives us confidence that the gold trends identified by shallow air- core drilling may be caused by a gold system below.
“Two rigs are currently drilling on site, with an additional diamond drill rig scheduled to arrive in mid-March. Step-out and infill AC drilling continues to refine the secondary dispersion footprint of the target, while our maiden diamond drill program, which has now been extended to 11 holes, gives us the first insight into the geological and structural picture at depth.”
The greenfield Karri Target is located in the Bendigo Zone, 65km north-west of Bendigo under 50-85m of Murray Basin cover. The new results follow the initial identification of the Karri gold trends under cover in late 2019.
Significant 3m / 4m composite drill intercepts from 62 new AC drill holes include:
- 3m @ 3.86g/t Au to end-of-hole (EOH) associated with a zone of laminated quartz veining, within 23m @ 0.67g/t Au;
- 4m @ 1.35g/t Au within 20m @ 0.39g/t Au;
- 4m @ 0.70g/t Au within 32m @ 0.18g/t Au;
- 38m @ 0.12g/t Au from 86m to EOH; plus,
- Significant gold results (>0.1g/t Au) in a further seven holes.