Shallow, thick gold hits show St Anne’s potential to top up tank at Meeka’s Murchison project
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Meeka’s latest shallow, thick gold intersections at the St Anne’s target within its Murchison project are the stuff dreams are made from – if you’re an explorationist at least.
The latest results such as 32m grading 2.2 grams per tonne (g/t) gold from a down-hole depth of 48m including 20m at 3.31g/t gold, and 32m at 2.03g/t gold from 44m including 16m at 3.59g/t gold serves to confirm St Anne’s strike to about 1km.
Meeka Metals (ASX:MEK) notes that these drill hits add to previous shallow, broad hits such as 24m at 4.81g/t gold from 68m including 4m at 20.3g/t gold and 36m at 1.02g/t gold from 24m including 8m at 2.35g/t gold.
Taken together, the drill hits paint a very intriguing picture given that St Anne’s is located within an untested zone of a highly fertile 7km gold shear system, which also hosts the Turnberry gold deposit, and remains open along strike and at depth.
“The persistent return of shallow, high-grade assays from our Murchison Gold Project reinforces the exceptional growth opportunity,” managing director Tim Davidson said.
“Results are showing St Anne’s has good geological and grade continuity and drilling continues to expand the footprint of this high-grade system. The mineralisation remains open, and we are now drilling extensional holes to the north and the south.
“The inclusion of these thick zones of shallow, high-grade gold at St Anne’s in our Mineral Resource will have a meaningful impact on the robust outcomes our December 2021 Scoping Study has already delivered.”
An updated resource estimate is expected in the second half of this year while a pre-feasibility study is due for completion in September.
Meeka currently has a resource of 1.1Moz at its previously producing Murchison project, most of it contained within the 610,000oz Turnberry deposit.
The project previously produced over 330,000oz of gold at an average grade of 8g/t gold up until 2017 when it was put into care and maintenance due to the subdued gold price at that time.
Extensive processing infrastructure remains in place adjacent to the Andy Well underground mine.
The upcoming inclusion of St Anne’s into the resource numbers as well as recent bonanza gold grades at Turnberry bode well for the company’s plans to bring the project back into production.
Its December 2021 Scoping Study had outlined a project capable of delivering net present value and internal rate of return – both measures of profitability – of $124m and 46% respectively.
This will be delivered through mine production of 4.9Mt at 2.8g/t gold for 443,000oz of gold.
Drilling is now underway at St Anne’s targeting extensions to the north and south with further results to be announced in the coming weeks.
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.