The Burbanks mine is a gift that keeps on giving for Greenstone Resources, with new high grade drill intercepts showing the potential to add yet more ounces outside its mineral resource and exploration target.

Already supported by years of underground development, Burbanks is a special deposit as the only 250,000oz plus orebody at over 2.5g/t to remain undeveloped within 100km of the famous gold capital of Kalgoorlie.

Boasting a resource of 3.4Mt at 2.5g/t for 277,547oz (indicated and inferred), Greenstone Resources (ASX:GSR) is now 50% of the way through a 10,000m Phase-1 drilling program that is seeking to firm up mineralisation contained in an exploration target completely outside of the resource.

At least 50% of the Phase-1 drill campaign has now been drilled. But a string of new hits have been recorded in high grade parallel structures adjacent to both the JORC 2012 compliant mineral resource and the exploration target.

They include:

  • BBRC384DA: 1.49m at 12.40g/t Au from 335.0m
    • 59m at 26.30g/t Au from 335.9m
  • BBRC382D: 1.50m at 10.56g/t Au from 166.2m
    • 70m at 15.60g/t Au from 167.0m
  • BBRC406D: 0.90m at 16.99g/t Au from 215.6m
    • 35m at 35.50g/t Au from 216.2m
  • BBRC383D: 5.01m at 4.58g/t Au from 159.3m
    • 84m at 21.30g/t Au from 163.5m
  • BBRC384DA: 3.30m at 6.48g/t Au from 199.1m
    • 65m at 12.30g/t Au from 199.8m
  • BBRC387D: 3.65m at 4.74g/t Au from 209.0m; and,
  • 00m at 8.39g/t Au from 210.0m.

Powerful stuff.

Greenstone Resources Burbanks
A large portion of Greenstone’s Burbanks mineralised horizon remains untested. Pic: Supplied (GSR)

Golden days 

It sets up Greenstone to grow the Burbanks resource further, with a new resource estimate due once the first phase of drilling is complete.

“The current Phase-1 drill campaign continues to exceed our expectations with drilling continuing to reconcile with the JORC (2012) Exploration Target. Importantly, these most recent results have also served to identify several zones of mineralisation which are parallel to the main zone of mineralisation and are outside of the current Exploration Target,” managing director Chris Hansen said.

“The Phase-1 campaign remains on schedule for completion late this month, and following the receipt of all assay data, an updated mineral resource estimate (MRE) will be undertaken for Burbanks, with the updated MRE expected in late-May 2023.”

There are two more phases of drilling to be completed, including a 15,000m Phase-2 program targeting down dip and strike extensions of known mineralised lodes, as well as a 25,000m Phase-3 aiming to hit greenfields targets and extensions to a depth of 500m.

It all comes as GSR looks to work with JV partner Conico (ASX:CNJ) on options to consolidate the ownership of or IPO the Mt Thirsty project, a major nickel and cobalt project located adjacent to Galileo Mining (ASX:GAL) and its Callisto PGE discovery.

“Outside of Burbanks, we continue to work closely with our Joint Venture partner at Mt Thirsty in relation to an ownership consolidation and Initial Public Offering (IPO) of the Mt Thirsty project, principally aimed at providing our shareholders with a clear distinction between our base metal and precious metal projects,” Hansen said.

“With two drill rigs now on site at Burbanks, and Phase-2 and Phase-3 drilling scheduled to begin in April, we look forward to testing the true geological potential of Burbanks and keeping the market updated on a regular basis.”

Greenstone Resources Burbanks
A large portion of Greenstone’s Burbanks mineralised horizon remains untested. Pic: Supplied (GSR)

Drill for equity

That second drill rig has come at a saving to investors, with Greenstone inking a drill for equity deal with United Drill Services Pty Ltd to support the addition of the second rig and ramp up exploration at Burbanks without having to raise fresh capital.

It allows GSR at its election to satisfy 70% of the drilling costs for the second rig through the issues of shares under its placement capacity up to a maximum value of 20m share or $500,000.

The shares will be issued at 2.5c, the same as the issue price of a placement announced on February 13 and be subject to a 6 month voluntary escrow.

 

 

 

This article was developed in collaboration with Greenstone 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.