Ann: Drilling Commenced at Red Mountain Gold Project, page-11

Action !
Results soon.

22 February 2021
DRILLING COMMENCED AT RED MOUNTAIN GOLD
PROJECT
Second phase diamond drill (DD) program (drill holes up to a maximum
depth of 400m) has commenced at the Company’s 100% owned Red
Mountain gold project in Queensland (Figure 1).
Ongoing exploration activity at the Red Mountain gold project is
continuing to provide highly encouraging high-grade gold drill assay
results (refer to ASX release 21-Jan-21).
Drilling to date has outlined a discrete sub-vertical high-grade gold zone
(Western Zone) to a vertical depth of 180m. The zone remains open at
depth and drill holes in this program will test for gold mineralisation to
300m below surface (Figures 2 – 4).
High-grade gold was intersected in both the most recently completed
diamond drill holes (ZRMRD038 and 040) with individual assays peaking
at 34.2 g/t Au and 10.4 g/t Au respectively. Results were particularly
strong in hole ZRMRD040 with zones of high-grade gold intersected
from 111m down hole to the end of hole at 201.7m (Figures 1 & 2).
Gold mineralisation appears to be associated with a stockwork of base
metal stringer veins in altered diorite, granodiorite and granite with 5
separate occurrences of visible gold confirmed by assay results.
During 2020 the Company intersected high-grade near surface gold in the
maiden and subsequent drill programs at the Red Mountain gold project (ASX
Releases 3-Aug-20 & 13-Oct-20, 9-Nov-20, 21-Jan-21), including:
• 13m @ 8.0 g/t Au & 3.2 g/t Ag from surface
• 15m @ 3.5 g/t Au, incl. 2m @ 22.4 g/t Au
• 5m @ 10.4 g/t Au, and
• 12m @ 4.9 g/t Au
The current follow-up diamond drill program will commence step-out drilling to
test the depths extents of gold mineralisation. An initial 4 diamond drill holes up
to 400m depth will form the first part of this campaign. Drilling is anticipated to
take approximately 3 weeks with assay results a further 3 weeks hence.
Following completion of this work at Red Mountain it anticipated the rig will be
mobilised to the Company’s Develin Creek copper-zinc project, to enable time
for assays results to be received for the Red Mountain drill core.
Commenting on the diamond drilling program at Red Mountain,
Executive Chairman Peter Bird said: “Should this round of much deeper
drilling intersect gold mineralisation of a similar type to that in ZRMR040
(where free gold was identified in five separate intersections) then we will be
at a very positive and pivotal point for the Red Mountain gold project. We are
currently very confident that we are drilling a breccia pipe system which is
mineralised. The trick now is to chase a commercial scale gold inventory
which has the potential to add significant value to the business.”