Zamia Metals (ASX:ZGM) has identified potential to significantly...

Zamia Metals (ASX:ZGM) has identified potential to significantly extend the original gold resource at its recently acquired Belyando Gold Mine in Queensland both down dip and laterally.

Belyando is located about 2.5 kilometres northeast of Zamia’s Anthony molybdenum project.

The mine was established and operated by Ross Mining from 1989 to 1993, producing 85,840 ounces of gold from combined carbon-in pulp extraction and heap leach operations.

This follows the company digitising existing drilling data and producing new drill plans and sections that outline intercepts of up to 36 metres at averages above 0.5g/t gold below the current open pit as well as intercepts up to 16 metres averaging 2g/t gold.

The reported drill data indicates that gold mineralisation at grades of 0.5g/t to 3g/t continues underneath the Belyando open cut and, dipping steeply to the north-northeast.

Mineralisation is not constrained at depth and the potential exists for further near-surface mineralisation, in particular to the south of the current limit of drilling.

In May 2014 it was officially confirmed that the Mining Lease that had covered the abandoned open-cut mining operation was cancelled by the Department of Natural Resources and Mines.

This area now falls within Zamia’s surrounding exploration tenement, EPM 15145 - Mazeppa Extended.

There is a share price catalyst ahead in the second half of 2014 as Zamia plans to conduct reverse circulation percussion and/or diamond drilling at the Belyando site.

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