Breakfast at Esperance: Meeka Gold gets busy at Tropicana-like discovery
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Meeka Gold is already knee-deep in a 7000m aircore and RC drilling campaign targeting a Tropicana-style discovery at its Circle Valley project in WA.
Drill rigs are on the ground at the project on the south-west edge of the Albany Fraser Orogen, where reconnaissance drilling in 2021 returned promising results of up to 12m at 1.05g/t in shallow hits.
The project is located around 300km south of the 7.1Moz world-class Tropicana gold mine operated by AngloGold Ashanti and Regis Resources, one of Australia’s largest.
Significantly, end of hole multi-element analysis has supported the thesis that the same pathfinder elements found at Tropicana, one of the best gold discoveries in Australia this century, have been identified at Circle Valley.
The geo’s at Meeka Gold (ASX:MEK) consider this more important even than the thick intersections, and could point to a large, hidden gold system beneath the shallow transported cover the mineralisation at Circle Valley sits under.
The 7000m program, comprising both aircore and RC drilling, will test for strike and depth extension of Circle Valley’s large 1.2km by 400m mineralised footprint at Anomaly A.
“We are very excited to be back drilling at Circle Valley after the excellent results we received in 2021,” Meeka Gold CEO Tim Davidson said.
“Initially we will target anomaly A where we intercepted broad zones of gold mineralisation during 2021, as well as the Fenceline prospect 8km to the northeast where thick gold mineralisation has also previously been intercepted.
“Further to the drilling that is now underway, we have engaged specialist geophysics and geochemistry professionals who are reviewing the available data and providing insight into the style of mineralisation and controls on this mineralisation, which is assisting in guiding our approach to exploration on this tenure.”
Davidson said shareholders would be updated with results from the program over the coming months.
Circle Valley has emerged as a tantalising second prospect for Meeka Gold, which has been undertaking drilling and studies at its flagship 1.1Moz Murchison gold project since purchasing it from Silver Lake Resources for $8 million last year.
Thick gold intervals recently encountered by Meeka at Turnberry South – below the planned open pit at the MGP – underscore its massive potential for resource growth.
Notable results from the company’s Phase 2 drill program, announced last week, are very tasty with a 13m intersection grading 2.18 grams per tonne (g/t) gold from a depth of 219m that ends in mineralisation and 8m at 2.93g/t gold from 150m including 4m at 5.54g/t gold.
Turnberry makes up around 610,000oz of the overall resource, which also includes the historic high-grade Andy Well underground gold mine.
A scoping study released last year showed the project would deliver 443,000oz of gold over an eight year mine life to deliver pre-tax free cash flow of $182m at a $2,400/oz gold price.
A PFS is due this year, while drilling continues at Circle Valley as well.
This article was developed in collaboration with Meeka Gold, 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.