Gold Road - High Grade Extensions Confirmed at Alaric

Gold Road - High Grade Extensions Confirmed at Alaric

Gold Road Resources (ASX:GOR) has successfully completed an infill and extensional drilling program at the Alaric deposit, 24km south-west of the 6.2 million ounce Gruyere Gold Project. The program constitutes part of an effort to target additional high-margin gold deposits to supplement ore feed from the planned Gruyere open pit. Results from the drilling are likley to add to the existing Alaric resource, which is 850,000 tonnes of ore grading 1.69 g/t for 50,000 ounces of gold.


Highlights

Extensional resource drilling completed at the Alaric Deposit, 24 kilometres from the 6.2 Moz Gruyere Gold Project

 High-grade extensions defined below 50,000 ounce open pit resource

Potential to improve Gruyere economics with higher-grade feed

Targeting Mineral Resource update in H1 2017

High-grade mineralisation confirmed on Main Shear, including:

  • 3 metres at 21.9 g/t Au from 156 metres (12ALRC0031)
  • 3 metres at 6.0 g/t Au from 122 metres (16ALRC0183)
  • 2 metres at 6.2 g/t Au from 132 metres (16ALRC0188)
  • 2 metres at 4.1 g/t Au from 183 metres (16ALRC0180)

High-grade mineralisation confirmed on Hangingwall Structures, including:

  • 2 metres at 10.7 g/t Au from 89 metres (16ALRC0184)
  • 3 metres at 7.6 g/t Au from 148 metres (16ALRC0189)

Gold Road Resources Limited (Gold Road or the Company) is pleased to announce the successful completion of an infill and extensional drilling programme at the Alaric Deposit, approximately 24 kilometres south-west of the 6.2 million ounce Gruyere Gold Project in Western Australia. This programme constitutes one component of a larger effort targeting additional high-margin gold deposits to supplement ore feed from the planned Gruyere Open Pit, thereby enhancing the already robust Gruyere economics identified in the Gruyere Pre-Feasibility Study. The soon to be completed Gruyere Feasibility Study does not include Alaric.

The current open pit Mineral Resource at Alaric(1) is located on a granted mining lease with a Native Title Mining Agreement. This programme of 22 Reverse Circulation (RC) and diamond holes successfully infilled and extended continuous structurally controlled gold mineralisation over a strike length of approximately 700 metres. High-grade mineralisation (greater than 5 g/t Au) was identified on the Main Shear and Hangingwall Structures below the current open pit resource, to the limit of current drilling at only 160 metres below surface. This represents significant opportunity to extend mineralisation at depth as a potential underground resource.

Geological work is ongoing to refine high-grade shoot controls with the aim of updating the Alaric Mineral Resource in the first half of 2017. Both open pit and underground options are likely to be assessed. The Company will then commence Pre-Feasibility Studies on the appropriate exploitation of this promising deposit.

Gold Road Executive Director - Exploration & Growth Justin Osborne said: “We continue to be encouraged by the results of our ongoing satellite high-margin drilling progam. The high-grade extensions we have identifed now offer us the opportunity to assess Alaric as a potential open pit and/or undergound source that might deliver significant additional value to our world class Gruyere Project.”

High-Grade Mineralisation - Potential Underground Extensions

The Alaric open pit Mineral Resource of 850 kt at 1.69 g/t for 50 koz, has already been identified as a potential source of higher-grade supplemental feed for the proposed Gruyere processing facility due to its grade, proximity (approximately 24 kilometres south-west), and location on an existing mining lease (Figure 5). Recent geological interpretation identified several features that combine to make it an attractive target for underground mining including: highly continuous Main Shear geology; ideal geometry for underground mining (steep dip, and a strike length of 500 to 700 metres); and identified higher-grade “shoots” in excess of 5 g/t Au (Figures 1, 2, 3 and 4).

Drill Programme, Geology and Intersection Details

The drill programme was designed to infill and extend mineralisation below the existing open pit resource previously defined in RC drilling conducted from the 1980s to 2012. Only one historic diamond hole existed in the immediate pit area. Three additional new diamond holes for 445 metres were drilled to provide detailed geological information to improve the interpretation and understanding of the high-grade shoot controls. The RC component of the programme comprised 15 infill and extensional holes for 2,996 metres, four of which were re-entries of existing RC holes. A further four RC holes (347 metres) were abandoned during drilling after the dip of the holes steepened beyond design criteria. Assays for one diamond hole and two RC holes are pending.

Gold mineralisation at Alaric is located within the northern Yamarna Greenstone Belt on the regionally extensive Attila-Alaric Trend which hosts the 220 koz Attila Mineral Resource to the south and the Renegade Prospect to the north (Figure 5). Geological modelling has identified cross faulting as an important feature for localisation of higher-grade mineralisation at both Attila and Alaric (Figure 4). Steeply east dipping mineralisation is hosted in mineralised shear zones localised at lithological contacts (Figures 1 and 4). The Alaric Main Shear averages two to five metres in width, with local thickening up to seven metres. It is located on the contact between mafic and intermediate lithologies which is interpreted to provide rheological and chemical contrasts ideal for the deposition of high-grade gold mineralisation (Figure 1). Continuity of this mineralisation is defined over a 500 to 700 metre strike length (Figure 2) and is open at depth. Existing high-grade gold intersectionsto the north and south (Figure 3) suggest considerable strike potential remains.

Best intersections on the Main Shear included:

  • 3 metres at 21.92 g/t Au from 156 metres; including 1 metre at 7.29 g/t Au from 156 metres and 1 metre at 56.38 g/t Au from 157 metres (12ALRC0031)
  • 3 metres at 5.99 g/t Au from 122 metres; including 1 metre at 14.61 g/t Au from 123 metres (16ALRC00183)
  • 2 metres at 6.17 g/t Au from 132 metres; including 1 metre at 11.42 g/t Au from 132 metres (16ALRC00188)
  • 2 metres at 4.14 g/t Au from 183 metres; including 1 metre at 6.51 g/t Au from 184 metres (16ALRC00180)
  • 4 metres at 3.16 g/t Au from 155 metres (12ALRC00031)

Further upside has been highlighted by the high-grade intersections on the Hangingwall Structures approximately 20 to 50 metres east of the Main Shear. Although the grade in these structures is not as continuous as the Main Shear, additional resource potential will be tested.

Best intersections on the Hangingwall Structures included:

  • 2 metres at 10.74 g/t Au from 89 metres; including 1 metre at 19.29 g/t Au from 89 metres (16ALRC0184)
  • 3 metres at 7.56 g/t Au from 148 metres; including 1 metre at 14.29 g/t Au from 148 metres and 1 metre at 6.15 g/t Au from 149 metres (16ALRC0189)
  • 1 metre at 9.26 g/t Au from 127 metres (16ALRC0179)
  • 1 metre at 5.20 g/t Au from 110 metres (16ALRC0184)

Gold mineralisation is associated with albite-biotite-pyrite alteration with minor quartz-carbonate veining sub-parallel to shearing. Higher grades are generally associated with the most intensely sheared and altered zones (+5% pyrite and coarse biotite). Sand cover is generally one to two metres thick and the weathering profile is stripped with the transition to fresh rock occurring at a depth of 10 to 40 metres.

Future Work

Pending assays will be incorporated into the ongoing geological interpretation which will focus on understanding the high-grade shoot controls. The Company aims to complete an updated Mineral Resource in the first half of 2017. Pre-Feasibility mining studies will follow.

(1) Refer ASX announcement 16 September 2015

To view the full announcement please click here. 

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