Firefly is charging ahead with drilling as gold stays afloat
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Gold prices have climbed back up above $US1,800 ($2,275) an ounce mark after dipping briefly below on optimism that the US economy would recover faster than expected from the COVID-19 pandemic.
However, US Federal Reserve Chair Jerome Powell warned that the economic recovery remained “uneven and far from complete” and that the central bank would continue to maintain its accommodative monetary policies.
Midas Fund portfolio manager Tony Winwill told Kitco News that rising commodity prices, home prices and equity market valuations are all signs of increasing inflation.
“We are starting to see inflation creep into the economy more and more, and this is going to create the classic tightening cycle,” he added.
“Inevitably, when the Fed starts to tighten, if they ever do it, they are going to be significantly behind the curve, and that will be good for gold.”
While the Australia market focuses on half-year reports, Firefly Resources (ASX:FFR) has kicked off an aggressive 30,000m drill campaign aimed at establishing JORC resources across a further seven prospects at its Yalgoo gold project in WA this year.
Two rigs are currently drilling 7,000m of close-spaced grade control drill holes at the Melville deposit to prove up the potential economic extent of the extensive flat-lying surface gold mineralised zone noted in historical holes and its 2020 drilling.
This oxide zone extends from surface to a depth of 10m to 12m and stretches over an area of up to 800m long and 300m wide across the upper extents of the Melville deposit.
Results from the drilling are expected to underpin a resource for the oxide zone that is separate from the overall Melville gold resource, which is on track for delivery next month.
A third rig will start resource drilling in early March at the Don Bradman and Applecross prospects.
Meanwhile, Castle Minerals’ (ASX:CDT) rock chip sampling at the Polelle project in WA’s Meekatharra gold mining district has returned results of up to 4.91 grams per tonne (g/t) gold from a quartz vein associated with a splay north of the Albury Heath Shear.
The results are consistent with prospector/vendor rock chip sampling and recent Castle auger sampling anomalism in the same area.
Specific drill targets have been identified where the splay intersects the Albury Heath Shear.
Castle expects to identify further drill targets from infill soil sampling that it has commenced to the north of the splay fault.
Kalamazoo Resources (ASX:KZR) has struck thick, medium to high grade gold with its maiden reverse circulation drilling beneath the Waugh Pit at its Ashburton gold project in WA.
Notable results are 1m at 21.1g/t gold from 153m within a broader 9m at 5.52g/t gold interval from 148m, 1m at 17.8g/t gold from 157m within a 9m zone at 4.03g/t gold from 157m and 7m at 4.25g/t gold from 68m.
The drilling is the first stage in the company’s campaign to increase the current 1.65Moz resource at the project.
Further drilling along strike and below the current base of the Waugh Pit is planned to commence in the second quarter with the aim of substantially increasing the oxide resource.