Arika Resources’ surveys reveal promising ‘blind’ gold targets at Yundamindra

• ARI spots four promising blind targets at the Yundamindra project in Western Australia
• The prospect was historically mined but ceased in the early 1900’s around war-time
• Company hopes to revive gold potential with new drilling planned

Special Report: Arika Resources has identified compelling ‘blind’ gold targets at the Pennyweight Point prospect, part of its Yundamindra project in WA.

The prospect undertook limited drilling in the late 1980s and early 1990s, but highly promising drill results were not followed up and drilling ceased after low gold prices (~A$35-$500/oz) caused activities to become uneconomic.

Now that gold prices are in the vicinity of A$5000/oz, it is perfect timing to revamp the project in the highly prospective Leonora-Laverton area.

Initial results from recently completed ultra-detailed high-resolution airborne magnetic and ground gravity surveys point to four high-priority bedrock gold targets beneath surficial cover.

Arika Resources (ASX:ARI) noted these ‘blind’ high-priority targets had key structural elements similar to some of the area’s most significant multi-million-ounce gold deposits, such as Granny Smith and King of the Hills.

The work also represents the first application of modern geophysical exploration methods at Yundamindra and is consistent with recent strong drilling results at Pennyweight Point of:

• 35.76m at 2.14g/t Au from 104.27m, including 13.46m at 5.28g/t from 111.40m;
• 23.97m at 2.54g/t Au from 162.03m, including 5.38m at 10.62g/t from 170.52m;
• 14m at 15.48g/t Au from 46m; and
• 30m at 3.86g/t Au from 64m.

Watch: Bonanza gold grades grow scale of Landed at Last

Drill testing the next step

In addition, analysis of the recently completed airborne magnetic survey over the southern half of the Yundamindra project is well advanced with targets generated to be further refined by field mapping, rock chip sampling and soil geochemical surveys prior to drill testing.

RC drilling is continuing to test a pipeline of targets across the Yundamindra project with the new Pennyweight Point targets to be added following an Induced Polarisation (IP) electrical geophysical survey to refine them further.

“These initial geophysical results are exciting and have revealed several compelling bedrock gold targets that resemble the mineralisation at Pennyweight Point itself in terms of their geophysical and associated geochemical signatures,” ARI managing director Justin Barton said.

“The data also shows that this area is structurally complex with intense structural disruptions – exactly the sort of geological and structural setting – and plumbing system – that we want to see when hunting for big deposits.

“This setting is analogous to some of the big granitoid-hosted deposits in the Leonora-Laverton region, such as Granny Smith and King of the Hills, which has reinforced our excitement about the potential at Yundamindra and Pennyweight Point in particular.

“These targets will be systematically de-risked and further refined through an upcoming ground IP survey before we start testing them as part of the current 10,000m drill program.”

This article was developed in collaboration with Arika Resources, a Stockhead advertiser at the time of publishing.

This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.