Empire Resources strikes back with high-grade gold hits
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Gold miner Empire Resources has gained in morning trade on news of further high-grade intercepts at its new Penny’s Find gold mine near Kalgoorlie.
The stock (ASX:ERL) gained as much as 13 per cent to an intraday high of 2.6c in morning trade on the back of results from a second round of Reverse Circulation grade control drilling at the project.
Reverse Circulation is the most commonly used drilling method for grade control in open pit mining operations. Grade control is used to define the ore grades and ore blocks in the pit and also provide knowledge for mine planning and blasting.
So far, 48 holes for 1943m have been completed while a further 13 holes, totalling 500m, remain to be completed at Penny’s Find.
The drilling has returned numerous high grade gold intersections with better results include 4m at 54.62 grams per tonne gold from 37m; 4m at 37.36 grams per tonne gold from 22m depth; and 2me at 19.51 grams per tonne gold from 38m depth.
Empire’s managing director David Sargeant said second round of grade control drilling provided further strong confidence in the geological model being used for Penny’s Find.
“With a total average open-pit grade of 4.62g/t Au to a depth of 80m, this project is providing an excellent production opportunity for Empire, given the current sustained high gold price.”
Empire holds a 60 per cent interest in the Penny’s Find gold project with the remaining 40 per cent interest held by unlisted Brimstone Resources.
Penny’s Find’s mineralisation extends to 250 metres below surface and remains open at depth. High grade gold mineralisation is hosted by quartz veins at the contact between sediments and basalt.
Empire shares were up 9 per cent at 2.5c in lunchtime trade.