Surefire could have itself a second significant gold discovery
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Special Report: New drill results have not only confirmed the extensive thick, shallow and high-grade nature of the gold at Surefire’s Yidby project, but it indicates the company could have made a second significant gold discovery.
New drilling results from Surefire Resources’ (ASX:SRN) recent maiden drilling program at its Yidby gold project in WA has indicated the presence of two major northwest trending structures that are open in all directions.
Drilling at the Yidby Road prospect returned notable hits of 16m at 1.51 grams per tonne (g/t), including 4m at 4.18g/t and 1m at 13.43g/t, starting from 50m.
Meanwhile, Cashens Find produced intersections of 9m at 4.17g/t, including 3m at 9.41g/t, starting at just 18m and 3m at 2.04g/t from 30m.
Each drill hole intersected anomalous gold mineralisation and significant intersections were produced from 10 of the 20 holes completed.
These new results follow intersections showing wide zones of mineralisation that include high-grade sections close to surface and that are better than historic drilling results.
At the end of November, Surefire revealed the first eight of 20 holes returned top hits like 56m at 1.97g/t gold from 44m, including 4m at 14.47g/t from 76m; and 40m at 3.01g/t from 24m, including 4m at 26.57g/t from 52m.
To put that into context, anything above 5g/t is generally considered high-grade, but even at the current high gold price, grades of 1-2g/t can also be economic, particularly if the mineralisation is hosted within wide zones close to surface.
That news contributed to Surefire hitting a new 52-week high of 5.2c, a massive 5,100 per cent increase from a bottom of 0.1c in March. While its share price has edged back a bit since, the stock is still up 3,100 per cent.
“These exceptional new intersections confirm the extensive, thick and high-grade, gold mineralisation at Yidby Road, and also highlight the potential of Cashens Find to represent a second significant discovery,” managing director Vladimir Nikolaenko said.
“Drilling will now be planned to extend these new discoveries, that are associated with interpreted regional structures that each continue for up to 5km in Surefire’s tenements.”
Both the Yidby Road and Cashens Find structures remain largely untested by drilling along strike of the prospect areas tested to date.
The Yidby project spans 113.77sqkm of prospective greenstone terrain within the extremely fertile Yalgoo-Singleton Greenstone Belt.
It is located 40km from the mining centre of Payne’s Find (71,000oz) and is surrounded by major mines and deposits such as Golden Grove, Mt Gibson (87,000oz), Rothsay (485,000oz), Kirkalocka (1 million oz) and Minjar (1.1 million oz).
The three main targets are the Yidby Road, Delaney Well and Cashen’s Find prospects, all of which recorded significant high-grade gold intersections from historic drilling campaigns.
Historic drilling, initially by Normandy Exploration in 1996-1998 and then by Monarch Gold Mining Company in 2006, intercepted a mineralised porphyry.
Porphyry deposits can be multi-generational company makers with easy-mining large volumes making up for their lower grades.
And there is plenty of exploration upside, with no drilling having been undertaken at the Yidby project in the last 14 years.
Surefire is now planning to undertake follow up drilling at both prospects and targeting further high-grade gold mineralisation along strike within the two key mineralised corridors.
This article was developed in collaboration with Surefire Resources, 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.