Medallion’s drilling at the Gem deposit has returned a top hit of 3.29m at 65.62g/t gold and 0.68% copper, confirming expectations of high-grades from its visible gold observations.

Significantly, hole DD21KP1033 demonstrates that sulphide lodes that host some of the highest gold and copper grades at the broader Kundip Mining Centre are repeated throughout the system.

And if the drilling wasn’t evidence enough that there’s still plenty left to go around, Medallion Metals’ (ASX:MM8) underground face sampling at the historical Beryl workings has also returned high-grades such as 0.9m grading 49 grams per tonne (g/t) gold and 20% copper.

This is all very timely given the company’s imminent resource estimate update that is due to be released within the next two to four weeks.

The KMC currently has a contained resource of 674,000oz of gold grading 2.4g/t.

“It’s extremely encouraging to have positive visual results confirmed by the lab. Taken with the historical data from the Beryl workings is evidence of the high grade and high value of these discrete sulphide lodes that are repetitive throughout the Kundip system,” managing director Paul Bennett said.

“This also looks like a new structure opening up in the hanging wall of Beryl which is open down plunge, Kundip continues to throw up new opportunities close to surface.

“As we have seen throughout the entire drill programme, drill more and you find more metal at Kundip.”

Drilling supports near mine potential

The drill program targeted down-dip extensions of the Beryl underground workings at the Gem deposit at the northern end of the KMC.

Multiple occurrences of visible gold were observed in the drill core with hole DD21KP1033 turning up specks of the glittery, dense gold from 102m downhole in drilling from the Beryl shaft – a historic ore zone discovered in the 1930s that delivered some of the highest grade ounces in the KMC’s long life.

Assays have now confirmed the rich bounty intersected by the hole with the company noting that the down-dip extensions remain open at depth, which means that further drilling could uncover even more high grade gold and copper.

Other holes in the program, which systematically tested the southern down-dip and down-plunge extents of the Gem deposit lodes, also returned high-grade hits such as:

  • 11m at 10.2g/t gold, 0.03% copper and 0.51g/t silver from 36m (RC21KP1056);
  • 9m at 5.75g/t gold, 0.16% copper and 2.16g/t silver from 95m including 1m at 29.1g/t gold, 0.44% copper and 7.8g/t silver from 99m (RC21KP1048); and
  • 3.3m at 10.1g/t gold, 3.1% copper and 38.6g/t silver from 54m including 1.2m at 19.5g/t gold, 4.6% copper and 40.6g/t silver from 54m (DD21KP962).

Further activity

Medallion has completed about 16,000m of its 17,000m combined reverse circulation and diamond drilling program that was planned for the first half of 2022.

It is currently completing the final 1,000m of diamond drilling.

The company has also completed down-hole electromagnetic surveying at KMC, Ariel, Old Gregg and Meridian with results expected later this month.

Separately, a ground-based EM survey was completed across a historical airborne EM target about 350m northwest of Meridian.

Assays are also pending for the 18,386 samples the company sent to the laboratory at the end of April while the updated resource estimate is expected to comprise of a maiden estimate of Gem Restored in addition to updates at Gem, Harbour View and Flag.

This resource update will also include estimates for the copper and silver present in the system.




This article was developed in collaboration with Medallion Metals, 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.