Bonanza gold hits are a promising sign for Wiluna resource growth
Multiple bonanza grades with abundant coarse gold intersected at the Happy Jack zone has confirmed that Wiluna’s namesake project is a high-grade system.
Resource drilling at Happy Jack returned a top hit of 0.76m grading 773 grams per tonne (g/t) gold within a 1.99m zone at 298.8g/t gold.
But it is certainly not alone with other results such as 8.67m at 18.44g/t gold including 4.01m at 36.28g/t gold, 20m at 7.33g/t gold, and 4.75m at 11.81g/t gold including 0.85m at 59.4g/t gold.
Additionally, drilling at the East Lode has also returned thick, high-grade intercepts over broad areas such as 14.9m at 8.6g/t gold and 10.2m at 4.42g/t gold in the same hole, 14.3m at 3.86g/t gold and 11.24m at 4.6g/t gold.
These results are especially significant to Wiluna Mining Corporation (ASX:WMC) as both Happy Jack and East Lode are initial mining areas in its key sulphide development plan, which has already seen redevelopment of its underground operation progressing well ahead of imminent production.
The company already expects this drilling, which intersected high grades at good mining widths, to increase the resource grade at the project.
Wiluna currently has a high-grade resource of 26.9 million tonnes grading 4.89g/t gold, or 4.24 million ounces of contained gold.
Mined grade is also expected to increase when stoping begins in previously unmined areas in the current quarter.
This is particularly significant as every 1g/t increase in grade adds a further 25,000 ounces per annum to production in Stage 1 and 50,000 ounces per annum in Stage 2.
Happy Jack is located centrally within the Wiluna gold operation with drilling aimed at infilling the inferred resource within preliminary planned stopes with a view to upgrading geological confidence to Indicated or Measured category and converting these areas to reserves.
This goal appears to have succeeded with the return of multiple bonanza grade intercepts over good mining widths within 300m of surface and close to existing mine workings.
Drilling also indicates that the high-grade mineralised shear zone extends below the current inferred and indicated resource limits.
East Lode is located in the South Mine area and remains open and sparsely drilled in places.
Drilling from surface positions in the central part of East Lode continues to deliver multiple thick, high-grade intercepts over good mining widths, demonstrating the tenor of mineralisation in situ over considerable extents.
Adding interest, the East Lode has only been adequately drilled to within 400-500m of surface and is open at depth, which represents a key target for future resource growth.
Multiple rigs are currently carrying out drilling to infill and grow Wiluna in order to update resources and reserves as part of the ongoing Stage 2 feasibility study.
The company aims to build a 2.5Moz measured and indicated resource to enhance mine planning and long-term option studies, which could occur sooner rather than later given that current measured and indicated resources already stand at 2.14Moz.
Most historical production and existing resources are located in the upper 600m at the project with limited drilling to test deeper targets during the past 15 years.
This article was developed in collaboration with Wiluna Mining Corporation, 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.