Gold resource upgrade takes Auteco up to the magic million-ounce mark

While the gold price is ending August down from the record breaking high of $US2,088 ($2,803) an ounce it achieved early in the month, the robust activity has set the precious metal with a new, higher base from which to make its next assault.

This is good news for Australian gold players such as Auteco Minerals (ASX:AUT), which increased inferred resources at its Pickle Crow project in Canada by 170,000oz to 1 million ounces grading 11.3 grams per tonne (g/t).

And this could just be the beginning given that its ongoing drilling campaign has intersected high-grade gold – with visible gold – in numerous areas up to 250m outside the existing resource.

Notable results include 0.6m at 99.4g/t gold from 167.4m, 1.6m at 25.8g/t gold from 95m and 1.6m at 19.6g/t gold from 372m.

Auteco has so far completed 19 holes totalling 4,400m out of its expanded 45,000m program and expects a third diamond rig to start step-out drilling in September to accelerate resource growth and test multiple walk-up targets.

Numerous high-grade targets identified since acquiring the project earlier this year will be tested in 2020.

“To have established and grown a JORC resource of this size in this short time speaks volumes about the quality of the mineralised system,” executive chairman Ray Shorrocks said.

“And given the strength of the latest results, we have every reason to expect to achieve further growth in the inventory in time for our next planned resource upgrade in the first half of 2021.”

Auteco Minerals (ASX:AUT) share price chart

Gold resource upgrade is a boon for neighbouring explorer

Auteco’s resource upgrade is encouraging for its neighbour Ardiden (ASX:ADV), which has kicked off its summer drilling program at the Kasagiminnis gold deposit within its district-scale Pickle Lake project.

The program is testing an exploration target of between 500,000 and 1.2 million ounces at Kasagiminnis, which already has a JORC resource of 790,000 tonnes grading 4.3g/t for 110,000oz of gold.

Managing director Rob Longley recently told Stockhead that the company was looking to get between 3,000m and 4,000m of drilling into the ground before Christmas before starting operations again in January.

“While drilling at Kasagiminnis is an important activity, we do not lose sight of the other 17 deposits and prospects identified so far across our massive landholding,” he said today.

“These are all deserving of attention to ensure a strong pipeline of gold projects at Pickle Lake over time, as the company’s ground activities increase.”

Ardiden (ASX:ADV) share price chart

Fiji drilling hits high-grade gold

Meanwhile, Lion One Metals (ASX:LLO) has hit high-grade gold with a top intersection of 3.3m grading 85.7g/t at its Tuvatu gold project in Fiji.

Data from the drilling indicates that the high-grade zone is nearly at right angles to the main Tuvatu lode structures that trend north to northeast and dip nearly vertical.

The east to east-northeast orientation of the high-grade lode is similar to the nearby Murau lodes that comprise West Tuvatu. The company believes it may project under the entirety of the West Tuvatu lode system, which stretches at least 700m west of the high-grade intercepts.

Lion is currently preparing drill pads to the south of this system to test this target.