Kalgoorlie Gold Mining (ASX:KAL) is heading straight into its “largest ever” reserve-core drilling campaign after a significant extension of its Western Australian Lighthorse prospect that more than doubled strike length.
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Lighthorse has now had its strike expanded out to 1,450 metres (it was previously 600 metres) after extensional aircore drilling at the newer structure.
This expansion takes Lighthorse beyond the footprint of the company’s nearby Kirgella Gift-Providence system, where a JORC Inferred MRE of 2.34 megatonnes at 1.0 grams per tonne gold for 76,000 oz was recently recorded.
“This aircore drill program successfully validates KalGold’s geological model, identifying a substantial strike length of strongly anomalous gold mineralisation over approximately 1,500 metres and lower-level gold anomalism for another 500 metres along strike,” KalGold’s managing director, Matt Painter, said.
All up, 99 aircore holes were completed at Lighthorse for 4,710 metres (an average depth of around 47 metres) before KalGold hit the strong anomalism and mineralisation.
And, there’s potentially more to find, Mr Painter suggested. “Numerous, highly anomalous intervals, importantly including several significant thicker intercepts ending in mineralisation, highlight the potential for higher grades at depth.”
The prospect had no outcrop or historic drilling before Kalgoorlie Gold started work; the subsurface geology and structure were largely untested.
The expansion also uncovered a second strong anomaly 800 metres north of the original.
Lighthorse is now quite a bit larger than KalGold’s Kirgella Gift and Providence deposits, and as such, the miner’s priority has become to run RC drilling there – the “most extensive Kalgoorlie has undertaken to date.”
“This marks a significant step forward… as we continue to advance exploration at the Pinjin Project to see what lies beneath cover at Lighthorse,” Mr Painter said.
While KalGold bosses spruiked the expansion and impending “largest ever” RC drill campaign as a major windfall for the WA miner, holders seem to be a little less impressed with Tuesday’s results return.
KalGold shares dropped sharply on the news, down -13% after an hour, with some on HotCopper musing actual numbers in the report looked “low grade.”
The dip leaves KAL down -11% for the month, though still +122% for the year.
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