Koonenberry Gold outlines emerging bulk tonnage gold play with high-grade potential at Sunnyside

• Koonenberry drilling at Sunnyside prospect in NSW delivers 60m at 0.7g/t gold intersection
• Results from completed Phase 1 drill program indicate Sunnyside as an emerging bulk tonnage gold play
• Sunnyside Shear Zone shows potential for growth with ~2km prospective zone identified

Special Report: Final assays from diamond drilling at Koonenberry Gold’s Enmore project in New South Wales highlight the Sunnyside prospect as an emerging bulk tonnage play with high-grade potential.

Latest results extend the mineralised zone to more than 260m with hole 25ENDD007, which was drilled 40m along strike from hole 006, returning a 60m intersection grading 0.7g/t gold from a down-hole depth of 105m including 9m at 2.74g/t from 112m.

Adding further interest for Koonenberry Gold (ASX:KNB), holes 008 to 010 were potentially drilled beneath the up-plunge projection of mineralisation intersected to the east.

This is highlighted in a long section, where the mineralisation has an apparent ~easterly plunge with gold mineralisation open up-plunge, along strike and at depth. There are indications of higher grades such as a 1m zone at 11.9g/t gold from 244m within the broader intersection of 6m at 2.58g/t gold from 243m in hole 25ENDD010.

Managing director Dan Power said the “extremely successful” phase 1 drill campaign at Enmore had delivered exceptional results that pointed to an emerging gold discovery story at Sunnyside, which had standalone bulk tonnage as well as high-grade gold potential.

“The final four holes all intersected altered granite host rock, however the reported intercepts have become narrower and lower grade to the SW,” he added.

“These holes are within the mineralised system but may have drilled “underneath” or peripheral to the better grades and widths intersected in holes to the east and at depth.

“When plotted in long section, results indicate a potential plunge of the mineralisation along the shear zone towards the east with a high-grade zone of ~130m clearly open at depth.”

He added that drilling had intersected mineralisation from surface to a vertical depth of 300m, strike of ~260m and true width of ~75m, with the system remaining open at depth and along strike to the southwest and northeast along the Sunnyside Shear Zone, and providing clear potential for growth.

“To the east of Sunnyside, we see the potential for extensions and/or repetitions with gold and arsenic in soils and high-grade rock chips highlighting a ~2km long prospective zone along the shear at the contact between the granite and sediments,” Power noted.

“Limited, wide-spaced and relatively shallow historical drilling in this location also highlights the potential for additional discoveries, with most of these holes intersecting anomalous gold but rarely testing broad intervals of the preferred granite host rock.”

Enmore project

The 302km2 Enmore project sits within the underexplored New England Gold Belt, which hosts the 1.7Moz gold-antimony Hillgrove mine, the 8Moz Ravenswood gold mine, the 7.7Moz gold and 0.36Mt copper Mt Morgan mine and the 2.5Moz Cracow gold mine.

While results from Sunnyside have really underscored its potential, it is far from being the only prospect of interest, with the Borah fault hosting historical high-grade intersections, while historical workings are present at Sherwood, Queen of Sheba and Lone Hand.

Small wonder then that the company is using today’s results to plan more than 10,000m of further drilling that will be funded from its existing cash position of $8.6m.

This follow-up drilling is anticipated to start in late August and will test the continuity and extensions to mineralisation at Sunnyside as well as discovery and growth drilling along the Sunnyside Shear Zone.

Growth drilling will focus on the east of the Shear Zone where KNB has identified a ~2km strike length of highly prospective granite associated with gold and arsenic soil anomalies, high-grade rock chips and wide-spaced, relatively shallow historical drilling containing anomalous gold.

Induced polarisation surveys are being conducted at Sunnyside as a tool to help rank district targets and assist with drill targeting.

This article was developed in collaboration with Koonenberry 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.