Meeka diamond drilling confirms high grade gold at St Anne’s
Diamond drilling to support resource modelling at Meeka’s St Anne’s deposit within its Murchison project has confirmed the presence of shallow, high-grade gold.
Notable results include 12.8m grading 5.21 grams per tonne (g/t) gold within a broader 20.7m intersection at 3.29g/t gold from a down-hole depth of 54.3m (22SADD002) and 2.5m at 7.04g/t gold within 19.3m at 1.27g/t gold from 39.7m (22SADD003).
These results include up to 4m core loss within the mineralised interval where oxidised material has been washed out during the drilling process and serve to reinforce the high-grade gold intersections made by previous reverse circulation and aircore drilling in 2022.
Meeka Metals (ASX:MEK) remains on track to deliver an initial resource estimate in the current quarter, which will – along with the January 2023 Turnberry resource – feed into the Pre-Feasibility Study that is due in the June 2023 quarter.
The success of the St Anne’s drilling also bodes well for the imminent drilling of coincident gold-arsenic anomalies along the 25km long Fairway shear zone and along strike from both Turnberry and St Anne’s.
“This drilling, completed to support the St Anne’s Mineral Resource, comminution test work and geotechnical evaluation for open pit design has confirmed the high-grade nature of the mineralisation,” managing director Tim Davidson said.
“These high grades were evident even after accounting for between 0.7m and 4.0m of core loss, which is assigned zero gold grade when calculating the broader mineralised intercept.
“Additionally, the high gold recoveries, rapid leach kinetics and low cyanide consumption, reported in December 2022 point to St Anne’s making a meaningful contribution to the Pre-feasibility Study due in mid-2023.”
The Murchison Gold Project covers the northern extent of the highly prospective Mount Magnet and Youanmi Shear Zones in Western Australia’s prolific Murchison Gold Fields.
It hosts a 1.2Moz resource thanks to the recent upgrade of resources at the Turnberry deposit.
Murchison is also the subject of a Scoping Study carried out in 2021, which detailed a mine that would produce 443,000oz over 8-9 years, with a production rate of around 50,000ozpa.
All-in sustaining costs (AISC) were estimated at around $1,655/oz and the project is expected to deliver roughly $180m in free cash.
This is likely to be substantially different given the upgraded Turnberry resource and upcoming maiden resource at St Anne’s.
Further growth is also on the cards with plans to carry out other targets within the project.
This article was developed in collaboration with Meeka 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.