Rex Minerals’ (ASX:RXM) maiden drilling results at the Krista Project within the Hog Ranch Gold Property in Nevada USA have confirmed significant gold extensions outside the current Mineral Resource.
New data from the recent drilling programmes, including airborne hyperspectral data and ground Induced Polarisation (IP), have significantly increased the scale of the gold-bearing alteration observed at Hog Ranch.
The data indicates that the fertile Hog Ranch geological system has the potential to match the scale of some of the world’s largest known gold deposits.
As a consequence, Rex has now more than tripled its land position in and around Hog Ranch to ensure the prospective geology has been secured.
A second round of RC drilling will commence this week.
Managing Director, Richard Laufmann, said all 10 holes at Krista tested areas previously thought to be barren. Seven out of 10 holes confirmed significant extensions to the gold mineralisation, including:
- 2km strike of gold mineralisation identified between Krista and East pits
- 1.5km strike of gold mineralisation identified near Geib pit
- The company has now initiated a ground geophysics (3D IP) survey has been initiated at high priority projects.
Based on new data, Rex has elected to triple its land holding and now controls over 70 sq km.
These drill holes at Krista were an important first step towards understanding how big the project could be,” Mr Laufmann said.
“This drilling has confirmed good continuity to the gold mineralisation which is shallow, oxidised and in some locations over 100m in thickness.
“We are now observing and defining a central core to Krista, with a second round of drilling under way.
“Krista is shaping up to have an enormous footprint, opening the door to economies of scale to drive even lower cost structures, typical of Heap Leach in Nevada.”
Recent investigation of the historical drilling data combined with the results from the August 2020 RC drilling, identified a huge increase in the metals trending to the north-west of Krista and into the Cameco area which are indicative of a large epithermal gold system under the cover rocks.
Rex now interprets that the geochemical indicators further support evidence of a major Gold Trend. Based on an understanding of the current Mineral Resource and historical mining at Hog Ranch, Rex considers that there could be a repeated series of gold-bearing structures within this trend which continues under the cover rocks. This Gold Trend could potentially host multiple large-scale deposits from the Krista Project area up to the Gillam Prospect area, for a total distance of over 15km.