Inevitable: Meeka staring down gold resource growth at Turnberry South
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Delicious, thick gold intervals encountered by Meeka Gold (ASX:MEK) at Turnberry South – below the planned open pit – underscore its massive potential for resource growth.
Notable results from the company’s Phase 2 drill program are very tasty with a 13m intersection grading 2.18 grams per tonne (g/t) gold from a depth of 219m that ends in mineralisation and 8m at 2.93g/t gold from 150m including 4m at 5.54g/t gold.
Assays are pending for further holes at Turnberry South and the St Anne’s deposit.
Meeka has also completed two reverse circulation pre-collars at Turnberry South for two deep diamond wells to be drilled early this year.
“We have strong conviction that the Fairway trend, which extends over 5km from Turnberry to St Anne’s, is a large mineralised system that has yet to reveal its true endowment,” chief executive officer Tim Davidson said.
“Our team has started to demonstrate this, and pleasingly the results released in this announcement support this view, confirming thick, high-grade mineralisation at depth below the planned open pit at Turnberry South.
“With drilling ongoing during 2022 and a significant number of samples at the laboratory awaiting assay, we look forward to updating our shareholders with the results of this work over the coming months.”
Drilling at Turnberry South targeted a high-grade zone of mineralisation on the eastern limb of folded stratigraphy at Turnberry South, which forms part of the 1.5km striking Turnberry deposit.
The most recent drilling confirms the continuity of this eastern zone of mineralisation at depth with the mineralisation appearing to plunge to the south away from the existing resource and historical drilling.
All holes in the program intercepted a veined and strongly altered zone at the target depth with sulphide mineralisation observed in the rock chips.
Turnberry has a current resource of 11.3 million tonnes grading 1.7g/t gold for 610,000 ounces of contained gold and – along with the previously producing Andy Well mine – forms the basis for the Murchison gold project scoping study.
The study outlines a project with total mine production of 443,000oz of gold over an eight year mine life to deliver pre-tax free cash flow of $182m at a $2,400/oz gold price.
This will deliver net present value and internal rate of return, both measures of a project’s profitability, of $124m and 46% respectively.
Work is currently underway on a pre-feasibility study that is due for delivery this year.
This article was developed in collaboration with Meeka Gold, 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.