Firefinch finds new deposit to fuel Morila gold production
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Drilling at Firefinch’s K2 prospect in Mali has uncovered a new satellite deposit that will provide a new source of oxide mill feed for its Morila gold mine.
Significant intercepts at the new K2 deposit, which is within trucking distance of Morila, are 23m at 1.8 grams per tonne (g/t) gold from 50m, including 1m at 13.1g/t gold from 53m in KOTRC112, and 7m at 3.02g/t gold from 19m along with 2m at 10.06g/t gold from 55m in KOTRC115.
Firefinch (ASX:FFX) plans to carry out additional drilling to test for extensions to the mineralisation to the north and will estimate resources following this next phase of drilling.
“Our systematic exploration approach is paying off and generating tangible results for the company,” managing director Dr Michael Anderson said.
“The identification of the K2 deposit is another great result from our intensive drilling campaign.
“Finding and delineating a new source of oxide feed will provide additional flexibility to our milling options during the next 12 months as we ramp up production and move towards re-commencement of mining at Morila.”
The company intends to scale up production from 50,000oz of gold in 2021 to about 120,000oz in 2022. This will increase further to 170,000oz in 2023 before hitting 200,000oz in 2024.
Firefinch first drilled at K2 in 2018 to follow up on an auger geochemical anomaly with aircore holes returning results such as 7m at 1.1g/t gold from 17m and 3m at 1.43g/t gold from 8m.
Despite this, no further work was undertaken until the recent 28-hole drilling campaign.
Mineralisation at K2 is characterised as a shear zone hosted, low sulphidation quartz vein system, with mineralised lodes that strike north-south and are generally sub-vertical.
The company expects to carry out further drilling at K2 once current drilling at the recent K3 South discovery is completed.
This article was developed in collaboration with Firefinch, 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.