Greenstone flags yet more high-grade gold at Burbanks

Further results from Greenstone Resources’ Phase-1 drill campaign at the Burbanks project in WA have reaffirmed the high-grade nature of the project while also extending the known mineralised strike horizon by 25%.

The 10,000m drilling campaign’s latest hits include:

3m at 7.28g/t gold from 131m, including 1m at 19.20g/t gold from 132m (BBRC405D);
3.2m at 4.71g/t gold from 185.8m, including 0.37m at 29.50g/t gold from 185.8m (BBRC377D); and
7.8m at 3.01g/t gold from 194.7m, including 1.4m at 8.64g/t gold from 196.6m (BBRC377D).

The drilling is targeting the unclassified mineralisation supporting the recent JORC (2012) Exploration Target range of 3.3-3.6Mt at 2.0-2.8g/t gold for 215,000 – 230,000 ounces of contained gold.

Notably, this is entirely separate from the contiguous Mineral Resource of 3.4Mt at 2.5g/t gold for 277,547 ounces and does not include over 2km of largely untested strike potential.

Greenstone Resources (ASX:GSR) expects to complete Phase 1 drilling by the end of March 2023 with updated Resource thereafter.

Northern discovery extends strike horizon by 25%

Five holes were also completed in late 2022 testing the northern prospectivity of the Burbanks Shear Zone and intercepted shallow and high-grade mineralisation, serving to extend the known mineralised strike horizon by over 25% from 3.5km to over 4.5km.

Notable intercepts include:

1.32m at 6.68g/t gold from 210m, including 0.32m at 20.40g/t gold from 210m (BBRC428D); and
1.98m at 4.46g/t gold from 242m, including 0.59m at 12.00g/t gold from 243.0m (BBRC424D).

“Following from the recent intercept in BBRC371D of 7m at 57.84g/t Au from 90m in December, we have not only continued to deliver further high-grade intercepts, but also grow the known mineralised strike horizon by a further 25%,” MD and CEO, Chris Hansen said.

“We are now entering a transformational period for the company, where over the next six months we will seek to test the entire 5.5km strike horizon of the highly prospective Burbanks Shear Zone, through the completion of a three-phase drill campaign, which will then serve to underpin any future resource update or economic evaluation.

“The high-grade nature of Burbanks should not be understated, as over the past 10 years since 2012 the average open pit grade has declined 16% to 1.29g/t Au, whereas Burbanks has subsequently joined an exclusive list of ASX listed Australian gold projects with a resource grade >2.5g/t.

“Unlike a number of other Australian gold projects, Burbanks is located in the epicentre of the Australian gold industry, surrounded by a network of existing infrastructure, including processing plants, grid power and sealed roads. Serving to lower capital intensities and expedite our path to sustainable commercial production.”

Greenstone Resources asx gsr — Pic: Burbanks long section showing recently discovered high-grade mineralisation.

Phase 1 drilling resumes this week

Drilling is scheduled to resume this week, with the mobilisation of the first of two multipurpose (reverse circulation and diamond) drill rigs, with the second drill rig scheduled to arrive mid-February.

The initial focus of drilling at Burbanks will be the completion of the Phase-1 drill campaign following which, Phase-2 and Phase-3 will be prioritised.

Phase-2 involves 15,000m targeting down dip and along strike extensions of known mineralised lodes and Phase-3 is 25,000m targeting greenfields targets and extensions down to 500m.

Outside of Burbanks, the company continues to work closely with Joint Venture partner at Mt Thirsty in relation to an ownership consolidation and Initial Public Offering (IPO) of the Mt Thirsty project, “principally aimed at providing shareholders with a clear distinction between our base metal and precious metal projects,” Hansen said.

This article was developed in collaboration with Greenstone 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.