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Intermin Resources’ drilling reveals potential to develop Teal as a gold mining hub

Intermin Resources’ drilling reveals potential to develop Teal as a gold mining hub

Wed Nov 15 2017

 

Intermin Resources Limited’s (ASX:IRC) drilling at the Teal gold project northwest of Kalgoorlie-Boulder in Western Australia has intercepted spectacular widths and grades of gold.

 

Significantly, the drilling was successful in extending the mineralisation beyond the current resource envelope to the north, south and at depth.

 

Jon Price, managing director, commented: “These excellent widths and grades clearly demonstrate the potential scale and quality of this large new mineralised system in the heart of the WA Goldfields.

 

The new results at Yolande are also encouraging as the mineralisation appears to be related to the IP anomalies north of the Jacques Find discovery where very little drilling has been conducted to date.”

 

“I see the potential for the Teal area to become a significant new mining hub with both open cut and underground mining.”

 

Resource extension and discovery drilling completed

 

Intermin’s drilling aimed to test for extensions to known mineralisation at the Jacques Find prospect and to test an induced IP anomaly which trends for over 600 metres along strike at the Yolande prospect.

 

Extensional drilling at Jacques intercepted:

 

- 26 metres at 7.81 g/t gold from 48 metres;

- 16 metres at 5.33 g/t gold from 86 metres; and

- 7 metres at 7.13 g/t gold from 100 metres.

 

The strike length has now increased to over 800 metres and remains open in all directions, demonstrating the potential scale of the large mineralised system.

Next steps

 

Due to the quantity of high grade mineralisation discovered, a new priority follow up drill program commenced on 7 November 2017.

 

The drilling will comprise five holes for circa 550 metres with the results expected in the current December quarter.

Analysis

 

It is worth noting that Intermin is already a gold producer through its mining operation at the Teal Gold Mine.

 

Teal is on track to produce 15,000 to 16,000 ounces of gold generating net cash flows to Intermin of up to $8 million at A$1600 an ounce gold price.

 

The company is well-funded with over $5.7 million in cash at the end of the September quarter, with a robust 2018 and 2019 mining project pipeline.

 

Source: http://www.proactiveinvestors.com.au/