Dateline in Colorado: Bonanza gold and silver in clay zone could boost Gold Links production
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Face sampling of underground development drives at Dateline’s Gold Links gold mine in Colorado has returned bonanza gold and silver grades of up to 308g/t and 7,733g/t respectively.
The high-grade results are associated with a hanging wall zone that was not well recovered in the diamond core drilling program when defining this mineralised area.
Unsurprisingly, the market reacted well to the news, with shares in the company up 3.45% this morning to 9c.
Dateline Resources (ASX:DTR) adds its development mining program is progressing at pace with ore continuing to be trucked to its wholly-owned Lucky Strike mill as commissioning continues with lower grade ore.
The company has also purchased a 250 tonne per day ball mill to expand production at the 100tpd mill. Associated flotation cells, pumps and other equipment have been purchased with installation expected to be completed by the end of June 2022.
“It has always been the case in gold mining that ‘grade is king’ and these bonanza grades are nothing short of spectacular,” managing director Stephen Baghdadi said.
“Whilst we have seen high grades from exploration drilling at the Gold Links in the past, we have always recovered higher grades when we can actually see the vein such as we are doing now.
“The current face sampling returns of 10 ounces of gold and 7.7 kilos of silver per tonne gives us a lot of confidence for the future, particularly once we finalise commissioning the Lucky Strike mill inclusive of upgrades and begin mining the 9900rl Zone.”
The face sampling program was designed to provide the company with detailed information on the controls on mineralisation.
Its bonanza results were returned from the 9900mRL mineralised vein within the existing resource area with the company’s geologists suggesting that this clay zone may have been washed away during diamond drilling.
While this thin 3 inch to 1 foot high-grade clay zone is absent from most drillholes in this area, Dateline believes there is good potential for overall produced ounces compared to the mineral resource.
Lucky Strike is already configured to capture free gold in a gravity circuit followed by a flotation circuit, minimising the potential for gold losses to the tailings stream.
This article was developed in collaboration with Dateline 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.