Gold: As gold punches through $2K/oz, Black Cat’s Bulong grows and Nova drills its huge Alaskan project
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The price of gold punched through the $A2000/oz mark for the first time yesterday afternoon, and there’s a number of bullish analysts who think these levels could be supported for a number of years.
Which is great news for miners, but also good for Australian-based gold explorers like Black Cat Syndicate (ASX:BC8).
The Bulong gold project used to be a patchwork of smaller claims before Black Cat stitched it together into one ~87sqkm package.
It’s one possible explanation as to why such an exciting project, so close to the gold mining hub of Kalgoorlie, slipped under the radar for so long.
Black Cat, which listed in January 2018, released an interim 109,000oz resource for Bulong in February this year.
That’s not mind-blowing, yet.
But this resource covers just 14 per cent of three mineralised “corridors” – totalling 17km — that run the length of the project. All deposits are open along strike and at depth, which means there’s a lot of gold to find.
One of these corridors is the 6km-long Myhree-Boundary.
Following the latest drilling campaign, the mineralised strike over the Myhree and Boundary deposits is now 1.2km long, while the un-drilled area between the deposits has been reduced to 400m:
This 33 hole, 3954m campaign at Myhree was designed to infill and upgrade the current 50,000oz resource, extend mineralisation at depth, and find extensions to the north.
A major purpose of infill drilling is to confirm the continuity of mineralisation in a deposit, while extensional drilling aims to expand the mineralised zone even further.
Black Cat did both those things, successfully.
Results from infill drilling has increased the confidence in the existing Myhree resource and will probably result in an upgrade in July.
Results from extensional drilling at Myhree included 7m at 4.24 g/t gold from 187m, and 4m at 5.85 g/t gold from 201m.
Anything over 5 grams per tonne is considered high grade.
Myhree still remains open, so this extensional drilling is continuing to the north and at depth.
‘Open’ basically means that there’s more gold to be found beyond the limits of current drilling.
RC drilling has also been completed on SAM Target 1 – between Boundary and Myhree, with results pending.
Black Cat managing director Gareth Solly said the drilling at Myhree continued to provide thick, high grade results.
“This bodes well for an upgrade of the resource in July 2019,” he says.
“Extensional drilling at depth has also been highly successful and shows the mineralisation is consistent in terms of widths and grades in the deepest holes to date.
“In the meantime, extensional drilling is continuing at depth and to the north of Myhree.
“We continue to close the undrilled gap along this strongly mineralised corridor.”
Despite gold fever gripping the market, Black Cat was down about 4 per cent to 26.5c in morning trade.
Nova Minerals (ASX:NVA) has started drilling at the Estelle Gold Project in Alaska, which looks stunning:
“The Estelle project area has a multiple of alterations, structures and known targets on the large tenure with similarities to that of Kinross’ [9.2moz] Fort Knox Gold and Victoria Gold’s [6moz] Dublin Gulch Eagles gold mine,” says managing director Avi Kimelman. He says Nova is focussed on drilling the so-called Oxide North Area, one of 15 known prospects across the project. Once drilling is completed an analysis will then be undertaken with the view of establishing a maiden inferred resource across the prospect.
The Nova share price was unchanged in morning trade.