Firefly shines further gold light on Yalgoo
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Special Report: Firefly Resources has revealed further high-grade intercepts from the Melville deposit at its Yalgoo gold project in WA, including one intercept at more than 73 grams per tonne gold.
The latest assays represent the remain drill holes completed as part of the second phase of drilling at Yalgoo, and confirm the consistency, high-grade potential and shallow nature of Melville.
A total of 17 holes were reported in this round, with other results previously shared.
They include some standout numbers, such as:
Substantial widths of gold mineralisation were encountered in the latest round, with intervals containing visible gold in panning up to 50m thick.
Zones remain open at depth and along strike.
Speaking on the announcement of the results this morning, Firefly managing director Simon Lawson said the drilling had returned exceptional results.
“We have completed systematic drill test of areas that we believed were more ‘at-risk’ in the historical Melville resource estimate when we acquired the project,” he said.
“While producing some spectacular gold results along the way, this drilling within the main resource area has strongly validated the historical data used in the previous estimate, giving us a high level of confidence in the previous estimate.”
Firefly plans to start work soon on calculating a maiden JORC 2012 Mineral Resource estimate for the Melville deposit, with the resource expected to be available in the first quarter of next year.
When Firefly acquired the Yalgoo project in June, it came with an existing JORC 1999 resource of 2.75 million tonnes at 1.57g/t for 140,000 ounces which was reported at the time as being open in all directions.
“When we acquired the project, the value proposition was certainly underpinned by the historic resource at Melville – and we now have a high degree of confidence that the resource is robust,” Lawson told Stockhead.
“We are also confident that, when we come to recalculate the numbers incorporating our recent drilling and using modern resource modelling techniques and more relevant gold price assumptions, that we are well placed to improve significantly on this number.
“But the bigger picture for investors is undoubtedly the exploration upside beyond the known Melville deposit.”
Firefly has just kicked off the third phase of its maiden 10,000m reverse circulation program, and this will be wholly-focused on resource extension and growth opportunities.
“The next phase of drilling, currently underway, is designed to significantly increase the footprint of mineralisation by targeting an area up to 500m to the north and along-strike from Melville,” Lawson said.
“We have established an excellent foundation at Melville in our previous two phases of drilling, and it’s now time to step out and see how big we can grow our key gold asset at Yalgoo.”
“The current drilling is focused on an area extending north around 500m from the current mineralised position. If we are successful here, then it is game-on from a growth and discovery perspective.”
The company said the current drilling had the potential to significantly add to the planned maiden JORC 2012 mineral resource estimate for Melville, expected in Q1 of 2021.
Firefly acquired the Yalgoo gold project back in June from a private company for a cost of $2.91 million and has had some serious results in exploration at the long-forgotten project since.
These included one intersect of 1m at 1439.55g/t gold from 50m in September.
Anything above 5g/t is generally considered high grade.
Since then, the results have further buoyed Firefly’s exploration efforts and firmed up the company’s understanding of what it’s working with.
Lawson said today’s results would pave the way for further exploration across the project.
“We are really excited about what we are seeing in these latest drill-holes and have a schedule of targets along-strike from Melville as well as across the multiple proven mineralised trends in the wider Yalgoo Gold Project,” he said.
“Our shareholders are in for a great ride!”
Firefly’s prospective exploration portfolio also includes the Forrestania gold project 380km east of Perth, and the Paterson copper-gold project in the highly prospective Paterson Province.
This article was developed in collaboration with Firefly 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.