News: Excelsior Gold expands gold mineralisation at Bulletin South

Excelsior Gold (ASX:EXG) should trade firmer after ongoing drilling continued to expand gold mineralisation in the Bulletin South resource area within its Kalgoorlie North Gold Project in Western Australia.

The latest drill result of 8 metres at 3.61g/t gold from 82 meters, together with a previously announced intersection of 19 meters at 5.94g/t from 77 metres, improves resource confidence within the multiple lodes at Bulletin South and will facilitate expansion of the mineral resources.

Gold mineralisation at Bulletin South is associated with northeast trending and splay shear structures related to the Black Flag Fault structural system.

The historical grade control drilling within the previously mined Bulletin South open pit indicates that individual grades down hole and between holes display a large variability over short distances.

This variability is due to the density of vein material intercepted in each hole within the host rock as well as a possible nugget effect.

Based on these results and the new geological interpretation the gold mineralisation is interpreted to remain open down dip and along strike to the south-west.

The area is intersected by the regionally important Black Flag Fault and several mineralising trends are being defined.

Exploration in the area is being aided by fluid flow modelling of structures as part of the collaborative research program with CSIRO and by recently acquired hyperspectral mapping which highlights alteration patterns associated with gold mineralisation.

Excelsior's gold resources at Bulletin South, Leilani, Nerrin Nerrin, Castlereagh and Parkerville are located in close proximity to the Black Flag structure.

The largest deposit developed to date in this immediate area is Wendy Gully, located two kilometres south of Bulletin South, which produced in excess of 200,000 ounces of gold from open pit and underground sources.

Reverse circulation drilling is continuing at the Kalgoorlie North Gold Project.

Drilling has now been completed at the Parkerville resource area to facilitate further open pit mine studies. Parkerville is nestled in with other satellite resources earmarked for early mining under the Paddington ore treatment schedule.
Completion of drilling and mining studies at Parkerville is critical to the site planning, such as waste dump and haul road locations in this area ahead of the lodgement of mining approvals.

Drilling is also currently in progress at Pleasurebound to test granophyric zones within the dolerite paralleling the Zoroastrian Dolerite 400 metres to the east.

The drilling will examine the intersection of 4 metres at 43.7g/t Au intersected from 18 metres in historic drill hole before moving to the anomalous area west of Botswana Locker.