Australian Mines hits 52.1 g/t gold outside Boa Vista resource zone

• AUZ samples five horizontal reconnaissance channels with three returning high-grade gold
• New Biota zone stretches over 100m strike
• Biota sits outside historical VG1 prospect resource boundary

Special Report: High-grade gold hits outside the resource boundary at the Boa Vista project’s VG1 prospect in Brazil have revealed the new Biota Zone, striking over 100 metres.

Australian Mines (ASX:AUZ) said the results highlighted the potential of the VG1 area outside of the historical resource.

Channel One struck 2m at 52.1g/t gold, Channel Two 7m at 7.88g/t and Channel Three 4m at 9.17g/t.

“Together with new drone magnetics and our ongoing review of historical data, they provide a strong foundation for maiden drill targeting at Boa Vista,” Australian Mines CEO Andrew Nesbitt said.

The VG1 deposit holds a foreign resource estimate of 8.47Mt at 1.23 g/t gold for about 336,000oz of contained gold under the Canadian NI 43-101 standard.

The deposit sits within a gold-in-soil-anomaly stretching 2km by 350m, remaining open along strike and at depth for further exploration.

Historical drilling results from previous explorers revealed very broad mineralised zones well above 20 gram-metres – widely considered the threshold for economical gold – including 104.5m at 1.59 g/t gold for 166 gram-metres.

Only 15 holes have been drilled at VG1 to date, yet half of them have offered results above 20 gram-metres – VGDD001 in particular held four such results, with two grading above 100 gram-metres.

Together with the latest high-grade hits from beyond the boundary, Australian Mines sees plenty of potential for a low-cost, long-life, open-pit gold operation.

More from Australian Mines: Gold project secured with historical Ni-43101 336,000oz resource

Boa Vista project drilling program

Australian Mines has already obtained approvals for a drilling program for the Boa Vista gold project.

The company plans to drill an initial round of 3000m of diamond drilling, targeting high-grade parallel structures and following up on historical drilling.

AUZ will test below the resource boundary at the VG1 prospect, twin selected historical holes to confirm past results and extend drilling along a northwest-southeast shear zone to test for more gold along strike.

Australian Mines expects to begin drilling after the upcoming August 26 general meeting, should shareholders approve of the program.

This article was developed in collaboration with Australian Mines, 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.